Back in 2014, one concept was very popular among cryptocurrency entrepreneurs, and that was to create a blockchain alternative to Bitcoin that will allow developers to create their own digital assets.
Many projects just changed the blockchain’s code, while others were developing from scratch.
Just a year later, a group of enthusiasts created their own platform, called NEM (Nem Economy Movement).
This represented a blockchain ecosystem with facilitated value transfer for businesses and individuals, based on three main ideas including decentralization, financial freedom, and solidarity.
Read on to learn everything you need to know about NEM, including how to invest in it.
How does NEM work?
With NEM crypto users can not only send and receive payments but also create smart contracts and launch their own cryptocurrency tokens. NEM also has a built-in messaging system and a user-friendly wallet.
NEM’s consensus algorithm, proof-of-importance (PoI), is a unique system that encourages users to actively participate in the NEM network. PoI rewards users who have a vested interest in the network.
This is determined by taking into account factors such as how many coins the user holds and how often the user transacts on the network.
This incentive system ensures that NEM remains secure and decentralized, while also encouraging users to help grow the network.
NEM’s built-in messaging system allows users to easily communicate with each other, and the user-friendly wallet makes it easy for them to store and manage their coins.
Overall, NEM provides a comprehensive platform for users to send, receive, and store payments as well as launch their own cryptocurrency tokens.
XEM
NEM’s native currency is XEM, which can be used to pay for goods and services or sent to other users on the NEM network.
Its current price is $0.043. Users can also earn rewards for participating in the NEM network by staking XEM coins.
Currently, the platform is being used by a number of businesses and organizations, including Malaysia’s Ministry of Education, the Philippines’ Cagayan Economic Zone Authority, and Japan’s Mijin.
Apart from this, more and more businesses started implementing NEM recently.
How can you buy NEM?
You can buy NEM the same way you’d buy any other cryptocurrency, through online exchanges.
However, make sure you’re buying from trusted parties, avoiding the ones that look suspicious.
If you plan on holding onto your coins for a while, you’d need to have a NEM wallet.
There aren’t lots of choices when it comes to choosing your type of wallet, but the options presented to you are all safe.
Avoid keeping your coins on exchanges for security reasons, unless you’re planning on a day trading.
Once you purchase your XEM, make sure you withdraw it and keep it safely in your wallet.
Make a profit from NEM
If you want to make a profit from NEM, you can do so by harvesting. This is like mining cryptocurrencies but without any complex hardware.
You verify your transactions and then you get rewarded afterward.
Any person who has more than 10,000 XEM is eligible to harvest.
These tokens must be vested, which means they have spent some time in your wallet. Every day, +10% of the XEM you store is counted as vested.
There are two modes of harvesting available—a local and a delegated mode.
By default, everything is performed in the local mode. Your computer needs to be on in order for the NIS (NEM Infrastructure Server) to operate.
This is a NEM node where your private keys will be moved in order to sign transactions. NIS nodes power the whole NEM blockchain, as they power light and mobile wallets as well as third-party software that must be synced with it.
For delegated harvesting, your computer doesn’t have to be on all the time, as it is performed on a remote NIS. It is a safe option and you don’t have to worry about losing your tokens.
When you delegate your importance score, you’re essentially allowing another user to manage your account.
This non-active node will have no XEM in it, but rather only your private keys and importance score. In other words, your tokens will be completely safe.
Bottom Line
NEM is a new-age blockchain that has opened up a wide range of possibilities for building better as well as improved blockchain systems.
For over seven years now, NEM has demonstrated the sustainability of its strategies for constructing blockchain ecosystems.
Its easy and profitable harvesting model attracts many users who are looking to get passive income. As a result, many companies use NEM worldwide.