The newcomers in the cryptocurrency field, on observing a large number of cryptocurrencies, apart from Bitcoin would get intimidated and hence would be in a confusion that why do so many cryptocurrencies exist, apart from Bitcoin, NEM being one of them? Being naive in the subject and not having much exposure to so many different cryptocurrencies, they miserably fail in trading due to the ambiguity. The feeling is highly daunting when one is extensively used to the Fiat currencies. One of the most prominent reasons that can be predicted for such a scenario is the open source nature of the cryptocurrency projects. It is has become easier for people to make modifications in the existing code according to their requirements and there you get a brand new cryptocurrency coin.
NEM stands for New Economic Movement, and as the name itself suggests that the cryptocurrency is here to bring about a new revolution in the economic system. Its enterprise-grade solution is designed in such a way that it powers the blockchain economy itself.
The cryptocurrency coin was actually intended to be a fork of another cryptocurrency coin named NXT, which was, in turn, focused on the development of basic functionalities of pioneering cryptocurrencies such as Bitcoin. The developers at NEM.io had a change in opinion and initiated to design a new cryptocurrency of their own. However, NEM can be considered as an unofficial fork of NXT itself, as the developers copied the open source code modified it to suit their requirements.
The mainstream adoption of the cryptocurrencies is not that popular yet by the merchants but the professional in the field, on observing the attributes of the coin, predicted that the value of the Token is bound to increase steadily. With NEM’s adoption by Mijin, a commercial Blockchain, the value of the cryptocurrency has skyrocketed since then.
The cryptocurrency coin entrails a process called as Harvesting for the generation of new coins, but not through mining. Cascading the information is observed in this case as, when a particular node receives and verifies a transaction, it would immediately inform the nearby users of the transaction of that block and the process continues, hence cascading. A block in the Blockchain network refers to a set of transactions on the network. It is to be noted that, if the block which is added is a new one, then the miner gets a block reward.
As we all know that the Bitcoin protocol uses proof of work mechanism in order to add blocks into the blockchain. In this case, it uses proof of importance mechanism in order to enable the users to add blocks to the blockchain. Proof of Importance is nothing but the importance of a particular user to the Blockchain network. In simple words, if the user has a number of coins with him then he is more important to the network. Specifically, if a particular user has 10,000 XEM coins, after some time the coins are said to be vested in the Blockchain. Hence becomes eligible for the verification and addition of the blocks to the Blockchain. The rate at which the cryptocurrency coins in the user’s wallet gets converted into a vested one is 10% per day. It means that each day, 10% of the total amount of non-vested coins gets converted into vested coins.
NEM was developed in 2015 and hence is still in a very native state. Investors in this cryptocurrency would experience a huge amount of fluctuations due to the lower maturity of the market. With its ambiguous roadmap, the cryptocurrency is synonymous to a sleeping giant as described by the professionals in the field. The project has even gained Limelight and has attracted many developers, as it is intending to improve the transaction time taken by the Blockchain Network through its unique proof of importance mechanism.
The cryptocurrency coin is currently trading at $0.16 and is expected by the experts to reach $0.86 by 2018. A 60% gain until the end of the year is a remarkable potential. Also, the coin is to touch the $1.65 levels by five years from now. It’s amazing ability to provide stability to the Blockchain network is its golden key.
One should be very crystal about and must be able to differentiate between each and every cryptocurrency coin as all are unique in their functional structures and Financial etiquettes. Each one was introduced in order to compensate for the drawbacks provided by the first cryptocurrency.