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You can find our previous reviews here:
Cardano - review. Future plans.
Ripple - review. Further Perspectives
Litecoin. June'18 overview
The Dow Jones index. From where did it come to us?
Bitcoin Cash. June 2018 overview
Are cryptocurrency indices a new crypto market trend?
EOS. End of May'18 overview
Ethereum. May 2018 overview
Here on our Cryptoindex blog, we will be posting 100 articles about each of the top performing coins selected by our powerful AI algorithm #CIX100coinreview.
Today’s review: NEM and their future opportunity.
New Economy Movement - It`s the name of the cryptocurrency NEM. It became famous in 2015 along with Ethereum. It is distinguished by the POI algorithm (Proof of Importance), which are
modifications of Proof-of-Stake. Unlike Proof-of-Stake, POI improves the amount it possesses and takes into account the user's activity and the number of transactions carried out. Miners liked this platform because they received a reward in the form of a unit of NEM. This process is called "Harvesting" and the main condition for obtaining a reward is that there should be at least 10,000 NEM on the wallet.
The main investors in the NEM are Long Wong, Jeff MacDonald, and Nels Valero. The platform itself was launched in Japan, the development team remains anonymous until now. Capitalization of NEM already exceeds $1 billion and is projected to continue growing. At the time of writing, NEM is traded on large volume exchanges like Poloniex and Bittrex. NEM has several forks, including the private NEM Mijin created in 2016.
How does it work?
In NEM, the principle at work is: those who have more coins, gain s more privileges. Of course, mining pools have more weight in the network than other users. The same principle is present and another cryptocurrency - Dash.
The platform itself runs on the open source code of its own development, based on Java. The speed of generating blocks on average is 1 minute. Transactions take place in a few minutes. NEM is available for many types of wallets, including cold ones.
This platform supports the launch of ICO’s, release of its own tokens, intellectual property rights, voting and much more. This makes NEM a good competitor to Ethereum.
Mining in NEM
NEM isn't mined, however, developers are offered an alternative to the usual mining.
The extraction of new coins is due to the accrual of the commission to the nodes involved in the process of creating the blocks - harvesting. The commission is charged for the transactions included in the block.
The process is divided into two types:
What is the difference?
In the local process, you need to start the NEM client, with the private key provided to sign the generated block. The harvesting runs remotely and provides a private key for the mediator account with an empty balance, which is created immediately after the delegated process starts. Accordingly, by publishing the mediator key, the primary account security is created. The commission for the creation of blocks comes to the main account because the importance of your account can not be transferred to another account, which means that the intermediary account will be empty. Usually, all wallets harvesting, but to run it you need to activate, costing 6 NEM. It can take from half an hour up to several hours. After the start, it will work, even if your computer is turned off.
At the moment, there are several options for mining:
Using computer power
The most profitable is the first option because in other cases, investments will pay over the course of a long period.
The advantage of NEM platform:
Low commission (0.01%).
Transactions are confirmed in a short time
A total of 8,999,999,999 coins. There is no possibility of mining. But they have Harvesting.
NEM is a good competitor for Ethereum.
NEM in TOP -15.
TOP - 15* on coinmarketcap
Future Team Plans
The developers are trying to develop the ecosystem and are trying to introduce new technological solutions. At this moment they are working with the largest banks in Japan and Singapore. Also, they have a huge potential to become a good competitor for Ehtereum and giants such as Visa.
For example, the ago, the developers presented a unique solution that allows NEM-based registration of r ownership of land plots.
NEM has proved itself in the Asian market and has a good chance to gain a foothold here as a reliable means of payment for people. And integration with the banking sector will give a huge increase in users and investors.
At the time of writing, NEM [XEM] is 0.615% of the total of the CryptoIndex portfolio.
You can always check the current CIX100 composition at our MVP platform: http://cryptoindex.ai/
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