NEM is short for New Economy Movement. NEM cryptocurrency was created in 2015. It has a Japanese origin, and its programming code is written in the programming languages Java and Javascript. Coins in the NEM network have the designation XEM. It is one of the few cryptocurrencies that use the Proof-of-Importance algorithm to confirm transactions between public nodes. It takes into account the balance of XEM coins on the wallet, as well as the activity of the account and its age. A total of 9 billion XEM coins can exist. The goal of creating the NEM cryptocurrency was to preserve the best qualities of its precursor NXT, while at the same time eliminating the identified shortcomings of NXT.
How does mining work in the NEM network?
There is no mining in the NEM network because all XEM coins were created simultaneously at the launch of the project and their distribution is set by the first block (Nemesis block). To start earning in the system, it is necessary to have at least 10,000 XEM on the wallet and also it is necessary to transfer a wallet into active mode. The process of earning XEM coins is called harvesting. There is local and delegated harvesting. Local harvesting is done on a user's PC and delegated harvesting on a remote workstation. Any user can create a public node and receive commissions from transactions. The NEM cryptocurrency algorithm determines randomly which transactions a XEM node will process. The technical requirements for the XEM node are not high and the software can even be run on a mini-computer such as a Raspberry Pi.
What are the supernodes in NEM?
NEM uses trusted XEM nodes called supernodes. These cryptocurrency nodes are designed to support light public nodes, such as mobile wallets and 3rd party apps. Supernodes are blockchain nodes providers that are rewarded with XEM coins from the first block called the Nemesis block. Supernodes have high power, bandwidth and uptime requirements. If a NEM node meets these requirements, it is rewarded with XEM coins, the amount of the reward is determined randomly. The NEM node must also have a minimum of 3 million XEM coins in its account. Also, 30 XEM coins are paid as a one-time registration fee.
How does the Eigentrust++ algorithm work in NEM?
Since every NEM node is anonymous, it is difficult to detect the malicious behavior of blockchain node providers. The Eigentrust++ algorithm is used to solve this problem. This is the level of mutual trust between NEM nodes, which is defined as the ratio of successful and unsuccessful communication attempts. Thus, a chain of crypto nodes is built between NEM nodes that trust each other. This eliminates crypto nodes that intentionally send incorrect or incomplete data. The trust points of a NEM node are irrelevant across the network and are only important to the neighboring cryptocurrencies nodes.
What are the technical features of NEM?
XEM coins can be stored in PC wallet, mobile wallet, or hardware wallet. There is a support for smart contracts. However, unlike many other cryptocurrencies, the smart contracts are not stored on the blockchain but are executed on the user side. It is possible to issue custom tokens called mosaics. You can create your tokens directly from the wallet, no special knowledge or programming is required. To prevent network contamination, the creation of each mosaic requires a small payment in XEM tokens.
