New Economy Movement (NEM) is an integrated platform providing versatile blockchain and cryptography solutions to individual users and enterprises. NEM’s native cryptocurrency is XEM token, which runs on the platform’s NIS1 public blockchain.
NEM aims to be the blockchain solution for financial services in private entities whose operations are highly regulated. Some of the financial services include payment settlement and clearing. Thus, NEM complies with multiple financial industry regulatory requirements and guidelines. More private chains like Mijin are popular among tech companies.
NEM was built in 2014 by three pseudonymous developers. The developers are Jaguar0625, BloodyRookie, and gimre, as they identify on the Bitcoin Talk forum. NEM has expanded significantly to have a huge governing community responsible for its development and promotion, known as the NEM Group. NEM Group’s main contribution is in the development of the NEM ecosystem for the launch of NEM 2.0 and subsequent upgrades.
NEM Group’s board of directors set up strategies and budgets and ensure that all components of the ecosystem function toward achieving set targets. NEM’s three main components are NEM Trading, NEM Ventures, and NEM Software. NEM’s token, XEM, was launched in 2018.
NEM’s top feature is the NIS1 blockchain’s security. NIS1 is NEM’s original blockchain platform. The platform offers simple, flexible, and customizable blockchain tools with proven speed and security, with no downtime. These are essential features for developing financial infrastructure on NEM. NIS1 also uses a unique consensus algorithm, known as the Proof of Importance (PoI) algorithm.
NEM deploys PoI to ensure that transactions are timely and accurately processed and recorded. PoI utilizes various measures to reach consensus unlike other models like proof of work (PoW) or proof of stake (PoS) which consider singular factors, that is, computational power and number of tokens held, respectively. The proof of importance is evaluated by the number of XEM a user holds, the volume and frequency of transactions through their wallet. Therefore, the validator must be a trusted and active network user.
With PoI, individuals can facilitate transactions by running nodes on the NIS1 network to earn a portion of the fees for the transaction. This process is known as delegated harvesting. NEM’s consensus algorithm incentivizes users to actively participate in network activities. This way, they can improve their importance scores and earn rewards from validating transactions.
Other key features of NIS1 are multi-signature account contracts, the Eigentrust++ reputation system, and encrypted messaging. The platform also deploys the Apostille feature to verify the validity of files on the blockchain.
XEM tokens are offered as rewards for nodes that validate transactions and create new blocks. Also, transactions on the NEM public blockchain are settled using XEM.
The following are functions of NEM’s components:
- NEM Trading component oversees all accounting and finances.
- NEM Software component is tasked with the project’s development.
- NEM Ventures is the platform’s component responsible for investment and partnerships.
NIS1 is an essential tool for institution-grade blockchain solutions allowing enterprises to build blockchain infrastructure into third-party apps.
XEM Token Economics
The total supply of XEM is 8,999,999,999 coins which were pre-mined at the network launch. All the tokens are in circulation, giving XEM a unique zero-inflation feature, as the number of tokens is always fixed. The platform can process approximately 4,000 transactions per second and transactions are validated with significantly low resource consumption compared to PoW consensus. Currently, XEM has a $3.1 billion market cap, ranking among the top 50 cryptocurrencies.
No new XEM can be mined. Nodes are rewarded through the distribution of fees on the transactions for new blocks. Simply, you can purchase XEM from supporting exchanges including, Binance, Huobi Global, Bithumb, Zaif, and OKEx.
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