This a new series Cryptoblog is launching, where every day I am going to present a short article on a random relatively popular Altcoin. Today’s spotlight is on a coin called NEM, where as of June 2nd, it is the fourth most popular coin at almost a $2B market cap. I am going to explain some of the reasons why it launched to the fourth most popular coin so recently.

What is NEM?

NEM is a coin that was launched in 2016, that has the goal of becoming a public and private blockchain. Unlike Bitcoin that uses a proof-of-work algorithm that rewards miners for how much hashing power they put towards a block, NEM uses a newly created proof-of-importance algorithm that rewards users based on their contributions to the community. The process of creating blocks is called “harvesting” where the block creator is rewarded all of the transaction fees. The chances of being picked as a harvester are based on how “important” your account is.

Importance

Importance is based on three different things, net transfers, vested amount of NEM, and cluster nodes. Net transfers are any transactions made in the most recent month, vested NEM is just how much a person has saved, and cluster nodes are accounts that are part of a large amount of activity with others.

Vested NEM

Each account has vested and unvested NEM. Importance on the network is based largely on your vested amount. When you receive NEM in a transaction it is considered unvested. Picture it like a checking account, where you receive NEM that is unvested and a savings account for NEM that is vested. Every 24 hours, 10% of your unvested NEM, moves to vested status. When you send NEM to others, it removes some from your vested and unvested balances, in order to discourage super rapid trading. Also, if someone receives NEM and decides to keep it all to get a higher vested score, the algorithm will make hoarding a lower score.

How nodes work

NEM has what is called a node reputation system. Each node is given a trust value which is how often they synchronize with other nodes and how accurate its feedback is. This is to protect against malicious attacks where nodes are colluding.

NEM was a mystery for me until I started doing more research. It is a very interesting concept, and unlike Bitcoin you dont need to invest heavily in mining equipment in order to reap rewards from a block. I love how it rewards certain people just for using the network, and its mobile friendly wallet makes it very user friendly for beginners. I hope you enjoyed my quick article on the basics of NEM and if you want to see more frequent posts you can donate to my Bitcoin/NEM wallet. You can also click on the affiliate links to get free Dogecoin and free Bitcoin and benefit both of us in the process!

FreeDogecoin: http://freedoge.co.in/?r=763804

FreeBitcoin https://freebitco.in/?r=4538456 (highlight link and click “go to”)

Bitcoin Wallet Address : 17XMu3B2WSxDq1EdG9abbtxqL85rxfr1GF

NEM Wallet Address: NBZMQO7ZPBYNBDUR7F75MAKA2S3DHDCIFG775N3D

Sources

https://www.smithandcrown.com/new-economy-movement-nem/

https://www.nem.io/