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What is NEM?
NEM is an abbreviation for New Economy Movement. NEM is an enterprise-grade solution to power impending blockchain economy. What does that mean?
NEM is a decentralised peer-to-peer platform with its own unique blockchain where 3rd parties can build new and exciting applications. The NEM blockchain powers what they call the Smart Assets System. This system is intended to be an open, customisable blockchain solution for any number of use cases build on top of simple, powerful API calls. The NEM blockchain is secured and transactions are processed by global network of nodes running the NEM core software, and the network is used as an API Gateway server.
This approach gives developers a substantial flexibility when it comes to system design and how various apps are making use of the NEM network.
What about mining? How does the NEM economy secure its blockchain?
NEM employs a Proof-of-Importance algorithm to achieve consensus through a process that incentivises active participation in the network. This makes for a decentralised, nimble network of well-behaved nodes. Each node on the network has an importance score which determines how often the node can harvest ( just like mining in proof-of-work) XEM, NEM’s native token.
In a nutshell, the Proof-of-Importance algorithm is unique and seems promising. It’s an excellent alternative to proof-of-work and proof-of-stake consensus methods.
Here’s an infographic detailing the most important things about proof-of-importance:
What is special about NEM?
NEM is designed to be a customisable blockchain-based technology used for business purposes. Because NEM’s software is so adaptable, the potential uses are nearly endless. For example, smart contracts can be used as central ledger software for banks, keeping track of transactions by investment companies, or storing and sending government documents such as birth certificates.
NEM offers a truly innovative system that might be a major player in the coming blockchain powered economy. The ease of development, flexibility, and unique PoI system make NEM a very attractive platform for any developer or company that’s looking to build out a blockchain solution.