In early January, 2018, the NEM cryptocurrency was in the top 10, and its capitalization was 17 billion. But as a result of a prolonged fall in the market, the cost of cryptocurrency dropped to 0,12 $ and today the capitalization of this coin is about 1 billion.
What happened to the cryptocurrency NEM and can it regain high capitalization?
History
The idea of creating a cryptocurrency NEM appeared on the popular bitcointalk forum and consisted in holding a fork of the NXT cryptocurrency. But gradually its concept was developing and as a result a new project came out, with its own source code and the slogan “New Economic Movement”.
The NEM network was launched in the spring of 2015 of the year and for a long time could not reach the market leaders until the summer of 2017. Then came the first news about testing development on the basis of him by Japanese companies and the launch of a test network for bank transfers. And in December, 2017, the developers of NEM announced the integration of their wallet into a Wechat messenger with an audience of almost 1 billion users and just a day after that, the course took off at 150%.
But 2018 year for NEM is not set. In late January, XEM tokens on 400 million were stolen from Coincheck Japanese cryptobirth. After that, the head of NEM fund manager Lon Wong and vice president Jeff MacDonald simultaneously resigned in April. It was officially announced that they would remain in the project as advisers and decided to focus on expanding the use of the platform in the business sector.
In May 2018, the long-awaited release of the update Catapult took place, which made the cryptocurrency blockchain more secure, fast and convenient to use. But the positive effect of this news was offset by the continuing decline in the crypto market.
Directions of development
The NEM blockchain platform is based on three areas of development, which should become the driving force of the new economy:
- Custom payment system that provides high speed transfers and minimal fees. Both individual users and banks can use it; in this, this network is somewhat similar to XRP cryptocurrency.
- The second direction is smart contracts. You can conduct ICOs on the NEM network, run your own applications, token up assets and create systems for managing them.
- The ability to run corporate blockchains. This is a unique business offer that gives companies the opportunity to run their own private networks interacting with the public NEM blockchain.
Mining NEM
On the NEM platform, an original mining model is used, which is called harvesting. The network operates on the Proof-of-Importance algorithm. It translates as proof of importance and is a modified mining algorithm based on the principle of proof of ownership.
The difference between the Proof-of-Importance algorithm is that apart from the need to own a cryptocurrency, every miner has a reputation and the bigger it is, the higher the chances of creating a new unit. The reputation system takes into account various parameters, such as the cryptocurrency storage time, the transactions performed, the number of blocks extracted, and so on.
The supernotes are responsible for the network, which must be constantly connected to the Internet, have at least 3 million XEM on the account and meet certain technical requirements. Miners are connected to these supernods, for which the mandatory requirement for the extraction of cryptocurrency is the presence of at least 10 000 XEM in the account.
The distribution of the extracted cryptocurrency is as follows. Supernotes get a permanent reward for supporting the network. And the miners pick up a reward for each block they've got.
Hack and predictor Aviator
The capabilities of the NEM cryptocurrency and the level of development of its technologies indicate the great potential of this platform, which can be useful for both ordinary users and business representatives. But for NEM to grow, it needs news of a new global partnership. As it was when added to the Wechat messenger, but, unfortunately, this collaboration has not yet brought a significant expansion of the scope of use.
NEM (New Economy Movement) is a cryptocurrency supporting blockchain-based data management technology. The NEM blockchain uses Proof-of-Importance (POI).