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What Is NEM?
NEM is a dual-layer blockchain similar to Ethereum but written in Java, a popular computer programming language. Launched on March 31, 2015, the NEM mainnet supports multiple ledgers on its cryptocurrency layer, and the NEM Smart Assets layer supports mosaics to represent any storehouse of prize. NEM ’ s proprietorship crypto coin is XEM, which is harvested ( mined ) using a Proof-of-Importance ( PoI ) algorithm. ( NEM, by the way, stands for New Economy Movement. )
Reading: What Is NEM? Introduction To XEM
Introduction To NEM
What makes NEM so herculean is the Smart Asset System. Nodes on the NEM blockchain work API calls, which makes it easy to develop for, whether the dApp accesses NEM ’ randomness API directly, through a server, or in the background. basically NEM built a blockchain-based cloud platform with a NEM Infrastructure Server ( NIS ) made of fasten, decentralized march nodes on one side and a client slope, like the NEM Community Client ( NCC ), which acts as a gateway. Of course, it ’ s not all roses and rainbows for NEM – in January 2018 when all eyes were on the crypto market ’ s meteoric price spike, Japan-based crypto exchange Coincheck was hacked, and 523 million XEM coins were stolen, worth over $ 500 million at the time, and nowadays worth a one-tenth of what it was at its point. Before exploring whether this structure will make blockchain palatable for the general market, let ’ s research the market performance of XEM, NEM ’ s proprietary crypto mint, on the cryptocurrency market .
XEM Crypto Market Performance
The acme monetary value so far of XEM was $ 1.92 on January 3, 2018. As mentioned above, XEM isn ’ t “ mined ” or “ stake ” like a traditional currency using PoW or PoS consensus algorithm. alternatively XEM is “ harvested ” through PoI, which works more like a ship’s company pension plan than an interest-bearing savings report ( which PoS cryptocurrencies like Tezos besides reasonably resemble ). To begin vesting coins, you must place at least 10,000 XEM coins in an approve XEM wallet, which start out angstrom unvested. As you hodl the want XEM libra over clock time, your coins begin to vest toward your importance and pay dividends. The longer you hodl more XEM, the higher your importance to the network, but you ’ re besides rewarded for participating on the network by exchanging coins with other users .
so alternatively of simply putting your money in the bank and gaining passive interest, you ’ re incentivized to support the network in more of a profit-share model. That ’ s how pension plans used to work, for everyone born in the cost-cutting earned run average where they ’ re endangered in the wild. This hybrid model lets anyone enter as a lymph node, regardless of hardware office, relieving one of the biggest pain points in blockchain. It besides prevents anyone from buying control of the network, since meter and participation are factors, much like Google search ranking algorithms. Processing nodes are verified using a custom Eigentrust++ reputation algorithm. As a node turns in positive information, its reputation increases among other nodes. approximately $ 50,000,000 worth of XEM is traded on a daily footing. Exchanges that accept XEM include Binance, Upbit, Zaif, Poloniex, Kryptono, and Exrates. BTC is its most popular trade couple, although other XEM trade pairs include ETH, USDT, and even decree currencies like USD. And don ’ t forget not to store your XEM in exchanges – rather, keep it in the official NEM Nano wallet for desktop and mobile OS. This is where they ’ ll start vest .
Building a Better Ethereum
While NEM/XEM surely doesn ’ triiodothyronine sound more user-friendly than Ethereum by virtue of its acronymic name, but that was surely the goal when Bitcoin Talk forum user UtopianFuture proposed the initial framework. rather of forking from NXT, a full blockchain was built from the ground-up.
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NEM was built to resemble the stream internet, with namespace domains and subdomains assigned similar to ICANN ’ s internet knowledge domain mention system. This alone makes it much more attract to both developers and users. In summation, the multisignature functionality ( shortened to multisig ) to control what ’ s ultimately broadcast to the blockchain and written to the decentralized digital daybook. The blockchain community built NEM, so it is decidedly a blockchain of the people and for the people. Of course, as with most residential district projects, market international relations and security network ’ thymine NEM ’ s firm suit. This solid technical foul foundation doesn ’ t have the massive enterprise support early blockchain projects do yet. But that doesn ’ t beggarly NEM is dead in the water. In fact, it does have a partnership with Tech Bureau that created Mijin, an institutional bank platform. It besides built an ICO platform on the NEM network and several community-created projects jumpstarted development of the NEM ecosystem .
There are over 20 projects in respective stages of exploitation on NEM so far, including a privacy coin called Eroiy, an australian tourism visualize called TravelByBit, and even consolidation with Pundi X. NEM has strong support in Singapore and Australia, but China isn ’ t a fan. The NEM.io Foundation ’ s first gear in a series of blockchain incubators, dubbed the NEM Blockchain Hub, was launched in late 2018 in Melbourne, Australia. These incubators are certain to continue promoting custom of NEM, and blockchain in cosmopolitan, in startups and established industries around the globe. One such project funded by NEM Ventures ( the VC branch of the NEM platform ) is Vimba, a New Zealand-based crypto deposit startup .
Recovering from the Coincheck Hack
As discussed at the start, despite the community affair and technical chops of the NEM project, what it ’ s most ill-famed for is being involved in the biggest cryptocurrency hack in history. The $ 530 million Coincheck XEM burglarize topped the larceny of Mt. Gox in scale and was blamed on the change ’ s implementation of NEM API calls. Cryptocurrency exchanges typically store actual coin balances in “ cold ” wallets, which refers to them being offline. Coincheck held its XEM coins in a “ hot ” wallet, presumably in an attack to vest its mint balance. This greed led to the switch over being hacked, with NEM feeling most of the burn from Coincheck ’ s hot-wallet fucked-up. The larceny caused both Coincheck and the NEM.io Foundation a lot of headaches, with money needing to be paid back, weigh conferences held, and wax crisis alert mood activated. XEM price tumbled as a new development team was installed to push forth. By November 12, 2018, XEM was relisted on Coincheck, renewing confidence in this solid community-built project. It besides has active development, partnerships, and community documentation. These are all key ingredients in this project ’ randomness roadmap, which includes a full moon plunge of the platform ’ s native locomotive platform, called Catapult, in 2019 .
NEM is the FUBU of blockchain, providing a community-built chopine for easier residential district use. NEM is a lean, dual-layer blockchain alike to Ethereum and NEO/GAS, but with its own methods of reducing network congestion. Because of its solid community confirm, NEM survived the biggest cryptocurrency chop on record as of November 2018, and these key ingredients are all-important to its success.
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- XEM is harvested through a hybrid model that accounts for balance, time held, and network participation. This consensus model prevents ASIC-powered mining nodes or whales from controlling the network.
- NEM was created using Java and runs using API calls. This means any program can be easily adapted to contact and utilize the network.
- NEM using a domain/subdomain naming system similar to the current internet, making it well-poised for seamless integration and easy adoption across all platforms.
With these pieces in place, it ’ ll take more than one crypto exchange hack to hold NEM down. Unlike other crypto hacks, the trouble wasn ’ triiodothyronine with the blockchain ’ mho security, and the community still has potent ties to this OG crypto project.
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