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How NEM Works & Benefits of Smart Asset System

The cryptocurrency world has undergone changes since its beginning with the bitcoin. With the success of bitcoin, different new players saw an investment opportunity that could change the future generation. Therefore, developers began creating new cryptocurrencies that could in turn compete with the success of the bitcoin.

In this article, we are going to discuss the introduction of a new cryptocurrency known as NEM. In addition, we will talk about its history, understanding NEM and other factors aimed at giving you a better understanding of the currency. I hope at the end of the article; you will be able to say confidently that you are an expert in NEM cryptocurrency.

History of NEM

Well, it is common for any new cryptocurrency to begin its journey by forking another existing crypto for one reason or the another. The NEM platform is different from the previous cryptocurrencies in that the developers decided to write a completely new code. It began by forking the existing NXT which was an open source cryptocurrency that also had a payment network platform. This was after an open call in the Bitcoin Forum. However, this was dismissed by the developers in favour of writing an entirely new code.

After recruitment of an advanced tech team, the NEM cryptocurrency was soon given its own codebase by building it from the ground up. A foundation known as NEM.io was formed to maintain the development of the software and repair any glitches.

The NEM cryptocurrency is the next solution to the blockchain community. The crypto was first released in June 2014. However, it gained stability in March 2015. Currently, the cryptocurrency is undergoing some changes and it will be released in C++ different from its previous Java code.

NEM Smart Asset System

The developers made the NEM to be powered by the Smart Asset System. The system is designed to be an open blockchain solution that is easily customizable for any amount of built on top API calls. In addition, the cryptocurrency is secured and each transaction is processed with nodes which is a global network running in NEM’s core.

This means that new developers will not have to create new NEM software since they can easily do that by accessing the API calls. This in turn provides flexibility to the developers as they have the freedom to design their specific apps and the various ways they use the NEM platform.

The Smart Asset is made up of various features which include:

  • Mosaic – these includes digital items and custom tokens. The mosaic represents features like the coin, shares or even other cryptocurrencies.
  • Addresses – these are somewhat containers that hold on to deeds, contracts, coins or any other business record. Most of the items in this section are unique and can be updated when need be. The addresses vary from something as simple as an account with coins or a sophisticated one like a shipment of a package or a document to be notarized.
  • Transactions – this is the part where the Smart asset caters for all transfers of mosaic from one address to the next.

The Smart Asset together with the API system in the NEM gives the developers easy task to develop any app of their imagination and upload it to the platform. The platform has a variety of uses for example crowd funding, voting, security of records, stock ownership and mobile payments among others.

Other features of the blockchain include:

  • Spam filter – which prevents clogging of the system by garbage transactions.
  • Encrypted transactions – which allows the system to reduce any chances of hacking.
  • Multi-signature addresses – which allows developers to have multi control on containers and assets.

Well, with the above details, I’m sure you now have an idea of how NEM came to be. You are obviously wondering why one should opt for this cryptocurrency. Here is a description of its benefits.

Benefits of NEM Platform

Fast Transactions – The new code embedded into the NEM’s software enhances the efficiency of the currency’s transactions. XEM (symbol for NEM) transactions take about 20 seconds to confirm and 6 seconds to show up. Its counterparts like for example bitcoin will take over an hour just to confirm its transactions.

Low rates – The general transaction fees using the platform through public blockchain are quite low. As per now, the transaction cost is 0.01%. This is low compared to fiat transactions through credit cards which can cost up to 3% or PayPal which costs roughly around 2.6%.

Scalability – As per now the NEM platform has speeds that are incredibly high. Additionally, the platform is undergoing system changes to increase its speeds to handle thousands of transactions in seconds which may rank the crypto among the top leagues. This makes the crypto coin a good future investment because as the speeds increases so will its demands and in turn value.

Harvesting Methods – NEM platform has a unique and lucrative method of harvesting compared to mining in other crypto coins. The POI (proof of importance) and Delegated Harvesting methods are used to award coins. Whenever a blockchain harvests, it is rewarded with the transactions after confirming transactions in the block.

The new things that NEM brings to the table as compared to other cryptocurrencies include;

  • 100% traceable – the NEM cryptocurrency offers complete traceability which is different from other crypto coins for example Monero.
  • Less power – during harvesting, the cryptocurrency uses less power as compared to bitcoins.
  • Inflation resistant – since all its coins are already created, NEM is not subjected to inflation as compared to other cryptocurrency which still have active mining in progress.

The NEM’s primary focus is on the development and launch of new apps rather than the retail use of the cryptocurrency. NEM is therefore a formidable opponent to most of the current cryptocurrencies in circulation. It offers most unique features that are not found in any other cryptocurrencies. In case you are planning to invest in this crypto, you will need to download a wallet. This may include; Desktop NEM Nano wallet, NEM node or Mobile wallet. These wallets are user friendly and you won’t have a hard time understanding them.

In conclusion, it is clear that the NEM platform has a huge potential. The platform has a well-trained team of tech gurus. This will obviously put the XEM crypto a few steps ahead of its competitors.

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Collins Valentin

Collins is a blockchain enthusiast, who spends his time between documenting the blockchain revolution in Africa, and writing the latest on the cryptocurrency space. Collins contributes guests posts to BlockPublisher. Email: editor.news@blockpublisher.com

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