NEM foundation created its own blockchain to differentiate from the Ethereum blockchain. It is built from scratch as a robust and streamlined program for application, not just as a cryptocurrency. Therefore, to understand how Portal Network will implement NNS (NEM Name Service) on NEM, we would like to first discuss what is NEM, and its 3 major features: Namespace, Mosaic, and Multisig.

What is NEM

NEM blockchain is composed of nodes that run the center server software from NEM. These nodes implement a compelling, stable and secure program where NEM’s Smart Asset transactions can be conducted, explored and immutably stored in the blockchain ledger. Different from Ethereum, it does not support any smart contract. (Instead, NEM interact with the API to retrieve its contents stored on chain.)

What is Namespace

Individuals who wish to create a Mosaic (a NEM asset) needs to register a root domain name. NEM Namespace can be thought of very much like a website domain that can be purchased for an amount of XEM. The owner of the root namespace can be used to create custom tokens for different application on NEM.

The diagram below shows the hierarchy structure in NEM ecosystem. The root namespace holder can create different subdomains and each subdomains can create unlimited and different tokens under its name, creating various usage at an enterprise and business level.

So why are we still deploying NNS if they already have namespace?

At its core, the functions of NEM namspace and our NNS standard are different. NEM namespace is used to create unique smart asset called ‘Mosaic’ within the NEM ecosystem, while Portal Network’s NNS standard is used to simplify wallet address, contracts and IPFS hosted website. In other words, NEM namespace gives unique identity for the tokens, and NNS gives unique identity for its owner and users. We will discuss more in-depth about NNS and namespace in our future updates.

What is Mosaic

Mosaic is the backbone of NEM platform. It is like a file hosted on a domain (Namespace) that represents assets. Mosaic can have the same names as other files on other domains. However, the total address of Namespace combines with Mosaic will be totally unique, as the root of Namespace is unique itself (refer to the diagram above).

What is Multisig

Multisignature (multi-signature) is a form of technology used to add additional security for transactions. It requires another user or users to sign a transaction before it can be broadcast onto NEM blockchain. The required number of the signature is agreed at the beginning when user or users agree to create the address.