Categories: EducationFAQ

What Is NEM?

There are many different blockchain and cryptocurrency projects worth keeping an eye on. For novice enthusiasts, all of this information can quickly become overwhelming. To them, a project like New Economy Movement – or NEM – may make little sense on paper. However, there is a good reason why this project’s currency has been surging in value over the past few weeks. The NEM project is pretty complex, yet everyone can see its future potential.

What is New Economy Movement all About?

The NEM project mainly focuses on creating a smart asset blockchain which can effectively perform under a serious workload. Although smart assets issued on a blockchain are nothing new, most public blockchains struggle to make any meaningful impact in this regard. Especially when it comes to applications outside of the cryptocurrency space, most public blockchains are not all that appealing right now. NEM, on the other hand, provides a fundamentally streamlined method of pushing blockchain technology beyond its limits, so to speak.

Achieving such a goal will not be easy by any means. Currencies such as Bitcoin and Ethereum would love to scale to NEM’s level, but it is doubtful they will ever be capable of doing so. Competition in the blockchain world can often lead to new ideas. The New Economy Movement team built and coded their platform from the ground up with a strong focus on scaling and speed. At the same time, they had to “compromise”, as this is not a permissionless open blockchain by any means. Instead, the team opted to create a permissioned private chain to deliver industry-leading transaction rates.

There are actually two NEM blockchains in existence. One is the private permissioned ledger, and there is also an open public blockchain at users’ disposal. Both blockchains are entwined without compromising the stability or throughput of either ecosystem. More specifically, both blockchains can interact with one another without any problems. This allows businesses to build real-world applications and smart asset systems. Gaining access to both private and public blockchain technology with minimal development is rather appealing to a lot of companies right now.

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Do keep in mind the public NEM blockchain is the one which people can access through regular network nodes. The permissioned, private NEM blockchain must be run on one’s own servers. It’s interesting to see projects offer choices, as they know not every business wants to explore with open and transparent technology from day one. More importantly, businesses can implement either blockchain solution without having to worry about integrating existing business logic processes. It is a rather versatile system which caters to both cryptocurrency and blockchain enthusiasts.

NEM also has its own consensus algorithm which is vastly different from that of most cryptocurrencies. More specifically, it uses proof-of-importance, a technique quite similar to Google’s PageRank. Preventing attacks against the network or any of its transactions is the top priority for this team. Moreover, PoI is far superior at scaling and offers a high degree of energy efficiency at the same time. Network nodes – either for private or public blockchain purposes – are capable of running on any type of hardware one could imagine.

Obviously, there is a lot more to NEM than can be explained in a brief article. The website lists a lot of intriguing use cases for this blockchain technology, including the option of creating one’s own PayPal. Moreover, NEM’s technology can also be beneficial to the Internet of Things, thanks to the ioNEM initiative. The possibilities are virtually limitless when it comes to NEM, regardless of whether it’s used for public or private purposes.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

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