It began as a proof-of-concept before it was adopted by the commercial blockchain Mijin, making the value of XEM – the platform’s currency to rise.
How Does NEM Work?
NEM’s architecture consists of two components: the node which is the NEM infrastructure server or NIS, and the client which communicates with the nodes.
Both the NCC and NanoWallet can operate offline, and this provides enhanced security using an air gap system. It also provides protection from external attacks by connecting the NIS through a firewall. If you have internet, you can interact with the NEM blockchain even with a low-end computer or mobile device. In case of a hacking attempt on the NIS, the hacker will not access the NEM wallet software, given the platform’s extra layer of security.
The Difference between NEM and Bitcoin
The NEM platform has set out two strategies to build a better blockchain.
Harvesting is the alternative to mining. It was designed by NEM to generate XEM and to help maintain the integrity of the NEM blockchain. When someone does a transaction, the first computer to see and verify the transaction will inform nearby users of that transaction. “Generating a block” is the name of the process. If you generate a block in NEM with more than 10,000 XEM, you will receive the transaction fee on that block as payment.
Vesting XEM and proof-of-importance
Bitcoin uses a proof-of-work system where your computer does the work for the blockchain and you get coins in return. NEM uses a proof-of-importance system when it comes to harvesting. Importance measures how much you’re invested in the NEM system.
Once you have vested 10,000 XEM in your wallet, you can generate new blocks and earn the transaction fee for all transactions on that block. The non-vested XEM in your wallet will vest XEM at a rate of 10%. 20,000 non-vested XEM in your wallet will take 7 days to reach the minimum 10,000 vested XEM.
Making Money with NEM
Get paid in XEM – Since XEM and NEM are still young, the value is low and this allows you to buy a lot of XEM for less. For example, $90 worth of XEM would get you 3,000 XEM in April 2017. By September the 3,000 XEM were worth $900 in value. Receiving payments in XEM could be an investment in the network’s future and your wallet’s value.
Get Vested – Another way to make free money is to begin harvesting as this will allow you to earn small amounts of XEM for helping maintain the system’s security and accountability. But to do this you would need a minimum of 10,000 XEM vested.
NEM is relatively young, and any new cryptocurrency will face challenges and risks in its lifetime. NEM also lacks a concrete roadmap, thus users will have to wait and see. Since it was built from scratch, it has the potential to avoid the pitfalls that befell other bitcoin forks.