NEM

The history of NEM (XEM) began in 2015 when a Bitcoin Talk forum user named UtopianFuture explained how the cryptocurrency NXT inspired him to build a new project. By March 2015, a forked version of NXT called NEM went live. However, developers soon decided to rebuild NEM from the ground up, and by the end of 2015, NEM received its own codebase, making the platform more scalable and faster than NXT.

The project continued to gain momentum until 2016, when the NEM Foundation entered the sector. This non-profit focused on increasing NEM adoption through brand awareness, marketing, training, and partnerships. In January 2018, the popular cryptocurrency exchange Coincheck was hacked, resulting in the theft of 523 million XEM coins, valued at around $400 million at the time. Although the funds were never recovered, NEM spent two years monitoring and flagging every account that handled the stolen crypto, providing this information to the authorities.

In 2018, NEM saw its first real-world application when it was chosen by the Ukraine Central Election Commission for a pilot program to test the feasibility of blockchain-based voting systems. The same year, NEM secured an agreement with Malaysia’s Ministry of Education to test a system that authenticates academic certificates.

NEM (XEM) is a peer-to-peer cryptocurrency and development platform that operates using a unique consensus mechanism called Proof of Importance (PoI). This mechanism differs from traditional Proof of Work (PoW) and Proof of Stake (PoS) systems. Here's how it works:

• Vesting: Users need to hold at least 10,000 XEM coins in their wallet to participate in the PoI process. These coins are vested over time, with 10% of the holdings becoming vested each day. Once the vested amount reaches 10,000 XEM, the user can generate new blocks and earn transaction fees.
• POI Score: The PoI score is calculated based on the vested XEM and the number of transactions made within the network. This score determines the likelihood of a user generating new blocks.

• Supernodes: Harvesting allows users to link their account to a supernode, which is a powerful node that helps secure the network. By linking to a supernode, users can increase their chances of generating new blocks without needing significant computational power.
• Energy Efficiency: Harvesting is more energy-efficient compared to traditional mining methods, making it a more sustainable option.

• Block Generation: Users with a high PoI score can generate new blocks, which are then added to the blockchain.
• Transaction Fees: Users who generate new blocks receive a portion of the transaction fees associated with the transactions in that block.

• Multisignature Accounts: NEM supports multisignature accounts, which provide an additional layer of security by requiring multiple signatures to authorize transactions.
• Encrypted Messaging: NEM offers encrypted messaging, ensuring secure communication within the network.
• Eigentrust++ Reputation System: This system helps maintain the integrity of the network by evaluating user behavior and reputation.

• Interoperability: NEM enables seamless interactions between public and private blockchains, making it suitable for various applications such as supply chain management, financial transactions, and document storage.
• Custom Applications: NEM's API compatibility allows for easy integration with different applications, making it a versatile platform.

Overall, NEM's unique PoI mechanism and harvesting process provide a secure, efficient, and scalable blockchain solution with a wide range of applications.

NEM (XEM) has several strengths that make it a unique and attractive cryptocurrency:

1. Efficient Blockchain Management: NEM is designed to manage assets and data efficiently, making it an important tool for large businesses and organizations. It connects private and public blockchains, expanding their usability and enabling the easy transfer of digital assets.

2. Scalability and Speed: NEM's blockchain technology allows for fast transaction speeds, with an average of 30 seconds per transaction. This scalability makes it suitable for widespread adoption.

3. Security: NEM's blockchain has implemented multisignature accounts, encrypted messaging, and an Eigentrust++ reputation system, ensuring a high level of protection and reliability. The Catapult algorithm used by NEM also excludes the possibility of system errors or double debits.

4. Energy Efficiency: Unlike traditional mining processes, NEM's harvesting mechanism is energy-efficient and does not require specialized hardware. This makes it a more environmentally friendly option.

5. No Inflation: All XEM coins have already been created, which means there is no risk of inflation. This fixed supply helps maintain the value of the currency.

6. Low Transaction Fees: NEM's transaction fees are fixed and relatively low, at 0.1% of the transaction volume. This makes it an attractive option for users who need to perform frequent transactions.

7. Ease of Use: Running a NEM node requires minimal electricity and can be done on an ordinary computer, making it accessible to a wide range of users.

8. Unique Consensus Algorithm: NEM's Proof-of-Importance (POI) algorithm rewards users based on their involvement and commitment to the ecosystem, encouraging active participation and discouraging malicious activities.

These strengths position NEM as a robust and efficient blockchain platform with a unique approach to consensus and governance.

NEM (XEM) is associated with several risks that investors should be aware of before investing. These risks include:

1. Volatility and Liquidity Risks: NEM's value can fluctuate significantly, and liquidity issues may make it difficult to buy or sell the cryptocurrency quickly enough to respond to market changes.

2. Short History Risk: NEM has a relatively short history, which can make it harder to predict its long-term performance and stability.

3. Demand Risk: The success of NEM depends on its rate of adoption, which is uncertain and can be influenced by various factors, including competition from other blockchain projects.

4. Forking Risk: NEM is susceptible to forking, which can lead to the creation of new versions of the blockchain, potentially affecting the value and stability of the original chain.

5. Code Defects and Security Breaches: Like any blockchain, NEM is vulnerable to code defects and security breaches, which can compromise the integrity of the network and the value of XEM.

6. Regulatory Risks: Changes in laws and regulations can negatively impact the use, transfer, exchange, or value of NEM, and such changes can be sudden and without notice.

7. Mismanagement Risks: The NEM Foundation has faced financial difficulties and mismanagement issues in the past, which can erode investor confidence and affect the project's overall viability.

8. Competition from New Projects: The launch of new blockchain projects, such as Symbol (XYM), can divert attention and resources away from NEM, potentially impacting its adoption and value.

9. General Risks: NEM is also subject to general risks associated with crypto assets, including electronic trading risks and cyber security risks.

These risks highlight the importance of thorough research and risk assessment before investing in NEM or any other cryptocurrency.

• UtopianFuture: The pseudonymous founder of NEM, who initially wanted to improve NXT but eventually decided to build NEM from scratch.
• Lon Wong: The President of the NEM.io Foundation and the founder and CEO of Dragonfly Fintech Pte Ltd.
• David Shaw: The current CEO of the NEM Group, based in Maryland, US.
• Alexandra Tinsman: The former President of the NEM Foundation, who led the organization through a challenging period and implemented significant management changes.
• Takao Asayama: The director of NEM Japan and CEO of Zaif.
• Jeff McDonald: The VP of the NEM.io Foundation.
• Jaguar0625, BloodyRookie, and gimre: The three developers who created NEM as a hard fork of the NXT blockchain platform.