NEM (XEM) Project Overview

Oct 26, 2018   |   by Tianyu Wu   |   Tokens & Coins

NEM is the provider of a highly customizable blockchain network platform. Like many other blockchain networks, it provides the ability for creating crypto-tokens and real-world commodities. But unlike other blockchain networks, NEM has the unique ability to allow customers to have their own private blockchain network which expands its potential for problem-solving to an incredible width. Posted on NEM’s official website, the goal of NEM developers is to provide a vibrant cryptocurrency ecosystem that provides security and trust less computing to various applications in different fields including financial management, government activities, and academic verification/ licensing.

The developers of the NEM network divide their platform into two sections: one private, the other public. On one hand, the NEM network provides users with a provisioned private blockchain network that could be run on a customers’ server. This type of private blockchain has an API interface that allows other devices with different programming languages to access it. Thus, saving many users time to download heavyweight software that contains complex algorithms. NEM also provides many customizable features. For example, the managers of their own network are able to adjust the speed of block processing that may exceed the safety threshold required for public blockchain networks. But among the most impactful customizations comes Smart-Asset, a technology that permits users to attach a self-executing program on their blocks. These customizable features cement a broad range of potential applications. For example, since each transaction block generates a recording mosaic (which is a bundle of information inhabited permanently on the public ledger), business managers are able to create a system of reputation recording for their customers. If this kind of system is proved plausible, the general public may become more acceptable to blockchain products with a credit system.

On the other hand, in the public blockchain network, NEM provides a open blockchain service that most other cryptocurrency platforms can also support. The architecture of this public platform consists of a large number of nodes, each representing a harvester who provides processing capacity for the transactions on the public chain. Even though the model of this public platform is borrowed from Bitcoin, there is still leeway for innovation. The public section of the NEM network adopts a new type of consensus algorithm called Proof-Of-Importance(POI). Based on Proof-of-Stake(POS), the algorithm of POI incorporates not only the amount of coins at stake, but also a variable for the importance of each node. This helps miners (harvesters) to fairly allocate rewards for processing blocks. Beside the implementation of a new consensus-algorithm, NEM also adopts a range of technologies featuring an API server, P2P monitoring system, and an Eigentrust ++ mechanism that can quickly identify the reputation of a node. These characteristics make the NEM network more efficient and secure than its competitors.

Due to its highly customizable features, users can directly register any type of commodity or currency as blocks in the NEM network. However, to more efficiently manage transaction fees and rewards for miners(harvesters), NEM introduces its own cryptocurrency XEM into its public blockchain platform. To fully perform the transactional functions of the NEM network, users need to possess a certain amount of XEM coins as a reservoir for transaction fees. Also, the miners of the NEM network get their reward by the form of XEM coins.

Another new feature of NEM that is undergoing testing is Catapult - a new blockchain engine that will increase the transaction efficiency and add more security measures for transaction safety. This new feature will composite multiple ongoing transactions into one, thus making the processing speed faster. And what's more, the newly implemented multi-layered-signature introduces “AND/OR” logic into the blockchain algorithm, thus creating a new variety among smart contract programming.

Initially launched in Japan, NEM has gained a range of global talents. Its administration includes many layers, from core council members to managers in different countries. Since then, NEM has gained a sound reputation by establishing cooperation with many partner companies. This includes Tech Bureau Corp, Dragonfly Fintech, Atraura Blockchain, Blockchain Global, Kchain, LuxTag, Summer Inc., dtk.io, Asta Solution, Rapid Qube, Zeus Exchange, He3Labs Consultancy & Development. Due to its highly customizable characteristic, it is no wonder there is a broad range of companies seeking solutions through the means of this blockchain network.

NEM has an official account on Facebook and Twitter, which show their recent activities including many educational conferences aimed at improving the general public’s understanding of blockchain technology. They are also one of the most active blockchain platforms on github.

Tianyu Wu