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NEM

XEM
Current Price $0.09 (+1.29%)

BMJ Score: 4.1

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Description

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NEM, the Smart Asset Blockchain, is a platform that leverages a proof-of-importance (POI) algorithm designed to reward users based on their contribution to the platform. Created specifically for businesses, NEM makes it easy for companies to benefit from blockchain technology. 

By offering a simple development API and allowing programmers to use any language to create apps, NEM provides companies users with great flexibility. 

The Problem and Solution

Platforms that allow users to build and run applications certainly exist, with a sound example being Ethereum. However, the Ethereum blockchain provides significant transparency, which could prove detrimental to business users for numerous reasons. 

NEM allows users to build apps, but it offers them both public and private blockchains. As a result, companies can rely on NEM for many functions, including making financial payments and maintaining important records, and keeping these activities private if needed. Further, companies can use the platform to notarize, revise, and change the ownership of documents. 

The NEM platform also offers an easy API solution, and it gives users flexibility by letting them build applications using multiple languages. 

Further, NEM can be used to create mosaics, which are smart assets. Businesses can use this feature to design their own digital tokens, giving them interesting features in order to restrict who can use them or bypass middleman like notaries. 

Proof-Of-Importance

Both Proof-of-Work (POW) and Proof-of-Stake (POS) have their shortcomings, so the creators of NEM set out to develop a better alternative. POI is an algorithm that rewards users for being active contributors. This algorithm relies on harvesters, who mine blocks. 

To become a harvester, users need to have a vested balance of 10,000 XEM, the token used by NEM. The NEM tokens placed into an account vest gradually, so in order to reach 10,000 XEM, a user must either have a large number of tokens or be willing to wait. 

Users build up a trust score, which rises in accordance with their contribution to the network. The higher a user's trust score is, the higher the chances of him or her obtaining a reward through harvesting. 

The Token

The XEM token is used to pay for transactions on the NEM public blockchain. There is a finite number of these digital tokens, and their supply is capped at 8,999,999,999. 

XEM trades on several exchanges, including Poloniex and Bittrex. By purchasing XEM, you are basically buying a speculative asset. The price of this digital currency could rise significantly, or it could plummet. 

Summary

NEM has some very interesting features. However, the space in which it operates is highly competitive, so only time will tell whether this innovative platform will survive. 

Bitcoin Market Journal (BMJ) analysts gave this digital token a 3.8 out of 5 for long-term potential. 

Anyone thinking about putting money into XEM should keep in mind that investing is inherently risky. Performing the proper due diligence is crucial to making well-informed investment decisions. 

Fortunately, there are many resources available that can tell you about digital currencies like XEM and what drives their price movements. 

To stay on top of the latest updates in this space, subscribe to the Bitcoin Market Journal newsletter. 

Bitcoin Market Journal analyst briefing for NEM

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