NEM: The Plug and Play Blockchain for Everyone
“NEM is a movement that aims to empower individuals by creating a new economy based on the principles of decentralization, financial freedom, and equality of opportunity”.
The NEM.io Foundation is a not-for-profit incorporated in Singapore. The Foundation aims to introduce, educate, and promote the use of the NEM blockchain to industries and institutions worldwide. Also, they want to enhance enterprise “ while being run by the people, for the people”.
NEM Community Fund
The NEM community fund is in place to help startups get up and running on the NEM ecosystem. Ideas are voted on by the NEM community based on the application credentials, merits, and idea. Each project can be awarded up to 50 million XEM for legally registered companies, or for individuals and groups, up to 5 million XEM. Obviously, conditions such as being active in the NEM community do apply. A New Zealand winner of the NEM Community Fund is Choice with their unique payment method, Choice to Pay (see Use Cases below).
NEM is a smart asset blockchain built for performance. This smart asset system enables developers to focus on building what they need for finance, logistics, notarization, ICOs, and more. The technology integrates with existing company networks making blockchain adaption simple. Companies no longer need to perform costly changes to make their current system blockchain compatible. Because NEM is API driven, any existing application is compatible with the technology.
What Makes the NEM Blockchain so Versatile?
“NEM is higher performance, more customizable, easier to develop on, and more secure than other blockchain solutions – by design”.
NEM is a peer to peer platform providing services such as payments, messaging, asset trading and smart contracts. With NEM, all smart contracts execute off-chain to reduce the required resources and prevent scalability issues.
NEM uses smart assets called Mosaics which work in a similar way to an email attachment. You attach real or digital assets to Mosaics to send to other users.
NEMs blockchain could potentially change data management by effectively storing any industries transaction, customer, and supplier data in a transparent immutable ledger.
NEM has two blockchains available, a public and a private one.
The public blockchain is for those whose priority is open public transactions, or transactions between “untrusted” parties.
The private blockchain, Mijin, is for companies wanting a blockchain solution implemented on their own servers. Mijin is best when speed and privacy are the priority. A company using Mijin isn’t limited by using their own servers as Mijin communicates with the public blockchain when necessary.
What is Proof of Importance?
NEM’s most significant contribution to blockchain technology is a new consensus mechanism called Proof of Importance (PoI). It is environmentally sustainable by not requiring large-scale computing resources. The consensus works similarly to Proof of Stake (PoS) except that it isn’t based solely on the number of tokens held. Instead, it is based on an importance score, rewarding active participants. A higher importance score gives a higher chance to “harvest” a new block. Currently, accounts require 10,000 XEM held for a certain number of days to get a POI score. Algorithms in place prevent score manipulation, aka system gaming. Another use for importance in voting on the network. For more technical detail on POI, please see NEMs whitepaper.
What can the NEM Blockchain be Used for?
NEM has a multitude of use cases from governments to education to business startups. For example, governments can improve transparency, prevent fraud, and increase trust by recording transactions on distributed ledgers publicly available. Education providers can securely store data on exams, degrees, and students. Below are more uses NEM offers:
- Financial: Financial payments including mobile payments, create your own cryptocurrency, equity markets, escrow services, provides a liquid asset.
- Business management: Automatic accounting, Know Your Customer (KYC), loyalty reward points, logistics, supply chain.
- Secure records: Encrypted messaging, authentication and notarization*, anti-counterfeiting, certificate issuance, corporate compliance, land registry, access control.
- Decentralised organisations: Voting, crowdfunding, stock ownership, ICOs.
- NEM Community projects – Too many to list! See NEMs community page for more.
*Apostille is a notarization method utilised on both the public and private blockchains. Use cases for Apostille include legal contracts, car ownership details, and digital licenses, for example.
Who are Some Companies Already Using NEM?
Choice to Pay
An innovative contactless payment solution linked directly to your bank account. Choice to Pay works by utilising QR codes and your smartphone’s camera. The company redistributes half of the transaction fees to a charity you choose. They are doing this because they want to empower people to make a difference every time they pay for something. At the same time, Choice intends to reduce merchant’s transaction fees. Read how a two-day trial using Choice at MossCaff in Wellington went in this post by Choice.
Origins is a social impact platform designed to enable transparent sourcing and authentication of the raw materials used in clothing. Also, Origins aim to educate the end user to make informed decisions about the products they purchase. Little Yellow Bird is a New Zealand company making uniforms and branded workwear and will be the first to use Origins as the same team are behind both ideas. To learn more about this project see our article on Origins.
Provides an easy-to-use copyright registration and verification platform for consumers, enterprises, and governments to legally protect digital works. Digital works include literary, musical, and artistic works, as well as film, software, industrial designs, and more. CopyrightBank will be launched as a web-based platform meaning it will be globally accessible. The company will then develop a mobile app.
Asta is an IT company based in New Zealand and Australia. They focus on web development, mobile apps, cloud services, and business consulting.
What can I do with NEM and XEM?
Currently, you can send and receive payments and messages, buy, sell, or trade assets and goods. These actions are quickly and securely executed at a low cost. Also, NEM operates on a global scale without users needing a bank account. In the future, features such as asset trading, smart contracts, coloured coins, and a mobile wallet for iOS and Android will be developed.
Today, the NEM Foundation announced the launch of two NEM Blockchain Hubs, one in Australia and one in New Zealand. These hubs will serve to help educate the public on NEM blockchain technology. Also, they will be supporting startups and other enterprises that wish to adopt blockchain in their business. The New Zealand hub will be hosted by Cerebral Fix at Epic Westport.
How to Buy NEM (XEM) in NZ?
To easily buy NEM (XEM) in New Zealand you can do so right here, at BitPrime. Firstly, if you haven’t already done so, please register an account with us and have your ID verified. Finally, visit our product page to order your XEM. If you require any further assistance, please contact us, and we will be happy to help.
What Wallet do I use for XEM?
Disclaimer: The above references an opinion and is for informational purposes only. Do not take this as personalised financial or investment advice. The opinions expressed by the author do not represent the opinion of BitPrime.
Last updated: 16/07/2018