What is NEM blockchain platform
NEM is a blockchain platform that was first launched in March 2015. It is designed to be a customizable blockchain solution that can be used by businesses and organizations to build a wide range of decentralized applications.
NEM is unique in that it uses a consensus algorithm called Proof-of-Importance (PoI) instead of the more commonly used Proof-of-Work (PoW) or Proof-of-Stake (PoS) algorithms. PoI takes into account a user’s overall importance to the network, based on factors such as the number of coins they hold, the number of transactions they’ve made, and the number of users they’ve brought into the network.
NEM also features several other unique technologies, such as its own encryption and multisignature capabilities, as well as its own Smart Asset system that allows users to create and manage assets on the blockchain.
Overall, NEM is a flexible and powerful blockchain platform that has been used to build a wide range of applications, from supply chain management systems to secure voting platforms.
The history of NEM blockchain platform
NEM was founded in January 2014 by a group of developers led by a person named UtopianFuture. The team initially started working on the project as a fork of the NXT blockchain, but eventually decided to create a completely new blockchain platform from scratch.
After more than a year of development, NEM was launched in March 2015. The platform initially gained attention for its unique consensus algorithm, Proof-of-Importance (PoI), which was designed to be more energy-efficient and fair than other consensus algorithms like Proof-of-Work (PoW) and Proof-of-Stake (PoS).
In the years that followed, NEM gained popularity among developers and businesses as a flexible and customizable blockchain platform. In 2017, NEM announced a partnership with Tech Bureau, a Japanese blockchain company, to create a new blockchain platform called Mijin, which was designed specifically for enterprise use cases.
NEM also gained attention for its involvement in several high-profile blockchain projects, including the creation of a blockchain-based voting system for the Japanese city of Tsukuba, and a partnership with the Malaysian government to create a blockchain-based supply chain management system.
In early 2018, NEM suffered a major hack in which approximately $530 million worth of its native cryptocurrency, XEM, was stolen from the Japanese cryptocurrency exchange Coincheck. Despite the setback, NEM continued to develop and evolve, with the launch of its new Catapult blockchain engine in 2020, which promises to deliver improved performance and scalability.
How NEM blockchain platform works
NEM is a blockchain platform that works similarly to other blockchain platforms, but with several unique features. Here’s a general overview of how NEM works:
- Nodes: NEM is a peer-to-peer network, which means that it is made up of many nodes (or computers) that are connected to each other. Each node stores a copy of the NEM blockchain, which is a decentralized ledger of all NEM transactions.
- Transactions: NEM allows users to create transactions, which are then broadcasted to the network. Transactions can include the transfer of NEM’s native cryptocurrency, XEM, as well as the creation and management of other assets on the blockchain.
- Proof-of-Importance: NEM uses a consensus algorithm called Proof-of-Importance (PoI) to validate transactions and create new blocks. PoI takes into account a user’s overall importance to the network, based on factors such as the number of coins they hold, the number of transactions they’ve made, and the number of users they’ve brought into the network.
- Smart Assets: NEM has its own Smart Asset system, which allows users to create and manage assets on the blockchain. Smart Assets can be used for a wide range of applications, from supply chain management to voting systems.
- Encryption: NEM uses advanced encryption techniques to ensure that all transactions on the network are secure and private.
- Multisignature: NEM has its own multisignature feature, which allows users to require multiple signatures to authorize a transaction. This can be useful for businesses and organizations that want to ensure that transactions are approved by multiple parties.
Overall, NEM is a flexible and powerful blockchain platform that offers several unique features, including its PoI consensus algorithm, Smart Asset system, and multisignature capabilities.
Can NEM blockchain platform be trusted
Like any blockchain platform, the trustworthiness of NEM ultimately depends on the specific use case and the parties involved. However, there are several reasons why NEM is generally considered to be a trustworthy blockchain platform:
- Decentralization: NEM is a decentralized blockchain platform, which means that it is not controlled by any single entity or organization. This makes it less susceptible to attacks and more resistant to censorship.
- Security: NEM uses advanced encryption techniques to ensure that all transactions on the network are secure and private. In addition, the platform has a strong track record of security, with no major security breaches since its launch in 2015.
- Consensus algorithm: NEM’s unique Proof-of-Importance (PoI) consensus algorithm is designed to be more energy-efficient and fair than other consensus algorithms like Proof-of-Work (PoW) and Proof-of-Stake (PoS). This means that the network is less susceptible to attacks by malicious actors.
- Smart Assets: NEM’s Smart Asset system allows users to create and manage assets on the blockchain, which can be useful for a wide range of applications. This system is designed to be secure and tamper-proof, which can increase trust in the platform.
Overall, NEM is a reputable and trustworthy blockchain platform with a strong track record of security and decentralization. However, as with any technology, it’s important to do your own research and due diligence before using NEM for any specific use case.