NEM (XEM) is On the Rise
So what makes NEM special? According to its official website, financial companies can use it for “instant” payments and money transfers worldwide. NEM’s blockchain software is used by a special blockchain known as Mijin. Major financial organizations, in Japan and worldwide, are experimenting with Mijin to see if it can be a viable solution for their needs. It also a “Smart Asset System” that enables users to create their own cryptocurrency without having to write a single line of code. In addition, it offers a quick way to make speedy mobile retail payments. NEM can also be used for escrow services and to set up “trustless” accounts that can manage digital currencies or virtually any other asset. With its technology, users can also create a payment system that has Paypal type functionality. There’s already such an app in existence called NEMPay.
We’ve heard of bitcoin’s proof-of-work algorithm and most have even heard about the alternative proof-of-stake algorithm. But, what exactly is proof-of-importance (PoI)? PoI is an algorithm that determines who will be allowed to validate transactions on the network. In order to be eligible, you must possess (stake) at least 10,000 XEM. Furthermore, PoI makes use of what are referred to as consensus addresses and an importance score. The importance score is a measure of how much you can be trusted or your overall reputation on the network. This score becomes higher if you continue to carry out successful and honest transactions.
So, your relevance and ability to validate transactions don’t solely depend on how much NEM you stake. It also depends on how well you process transactions. This is supposed to provide a fair and equal opportunity to nodes in what could be considered a very primal meritocracy for transaction processing. The NEM network can also detect abuse of the system. For example, if you create several accounts and keep transacting between them, then there are built-in controls that prevent this from happening. Also, if you keep sending XEM and keep getting it sent back to your account, like a loop, your importance score will go down. Thus, making you less eligible to validate more transactions.
What’s Behind the NEM (XEM) Price Surge?
NEM is using a unique marketing strategy that focuses on increasing awareness of cryptocurrencies in untapped markets. Its team has been visiting places like Kazakhstan to promote their brand and form strategic partnerships. Their team members have also opened up a Blockchain Center in Malaysia. In addition, the Singapore based, non-profit NEM.io Foundation traveled to New Zealand in early December 2017 to raise awareness and educate people about its blockchain technology. The NEM.io Foundation has set up a $40 million dollar global expansion plan and a $90 million dollar global development fund. This fund will be used to finance more blockchain startup companies, particularly in Australia.
Another major breakthrough for NEM occurred when it recently began trading on OKEX. OKEX is one of the largest cryptocurrency exchanges in the world and it is based in South Korea. There also more scheduled updates that will be coming, including a major upgrade to its blockchain technology called Catapult. This upgrade promises to be a completely new and improved version of its existing blockchain. There seem to be quite a number of people looking forward to and anticipating the launch of Catapult, which aims to be much faster and more secure than the current blockchain.
Plenty of Competition
The crypto-market has plenty of other cryptocurrencies and crypto-platforms that are steadily rising in popularity. They include Cardano (ADA), TRON, and Stellar to name a few. Needless to say, there’s a lot of competition out there. Therefore, it’s obvious that any newcomer has their work cut out for them. And, the veterans have to work even harder to remain relevant. NEM has yet to prove itself, along with a lot of other cryptos that seem promising. This year could be pivotal in determining the long-term success of the numerous cryptos that have flooded the crypto-market.