NEM: High-Performance Blockchain Architecture
Blockchain platforms are popping up everywhere, each with their own technological twist. While most crypto assets are listed on major blockchains, including Bitcoin, Ethereum, Stellar and Waves, there are a few projects working on unique, higher performing blockchain platforms designed for more enterprise-facing applications.
One such project is New Economy Movement (NEM), which is building a platform called the “Smart Asset System” that allows developers to create custom assets through direct API access to a specialized set of tested and secure on-blockchain features. NEM leverages a unique two-blockchain system that consists of a public chain that anyone can use and a permissioned private blockchain solution that can be provisioned specifically for businesses. Through this platform, NEM aims to establish their blockchain system as the premier enterprise solution.
Interested in NEM? Here’s a quick rundown of the project:
Platform & Development
NEM Smart Assets are built using four closely connected parts, as detailed on their website:
- Address “Container” Smart Assets: NEM Addresses are container assets on the blockchain that can represent a single object that must be unique and updatable, such as a package to be shipped, a deed to a house, or a document to be notarized.
- Mosaic “Fixed” Smart Assets: Mosaics are part of what makes the Smart Asset System unique and flexible. Mosaics are fixed assets on the NEM blockchain that can represent a set of multiple identical things that do not change. A Mosaic could be as simple as a token, but it could also represent a set of more specialized assets like reward points, shares of stock, votes or even other currencies.
- Personalized Namespaces: Namespaces let you create a unique place for your businesses on the NEM blockchain. A Namespace starts with a unique name similar to an internet domain name.
- Transactions: Transactions are how Smart Assets are put into action.
NEM has a two-tier architecture, which puts special attention to security. The supernode layer keeps the system powerful and fast, whilst ensuring that it maintains efficiency and optimum performance. This layered design “allows the second layer of wallets and third-party apps to use the entire network without downloading or processing the entire blockchain,” according to the NEM white paper. NEM accounts with over 3,000,000 XEM can operate a supernode and are compensated up to 320 XEM per supernode per day.
NEM’s APIs function seamlessly across their two chains, the public chain that anyone can use and the private chain (Mijin). The private chain is being built and licensed by the Japanese company Tech Bureau Corp., NEM’s strategic partner for permissioned-chain implementations. This private chain is specifically designed for speed and security, an ideal platform for enterprise solutions.
NEM’s consensus system leverages an energy-friendly algorithm coined “POI” (Proof of Importance), which is similar to Proof-of-Stake algorithms but with a few added variables like the transaction weight of each node.
NEM has an expansive list of proposed applications, broken out into few major categories:
- Financial Payments
- Create Your Own Cryptocurrency
- Mobile Payments
- Equity Markets
- Escrow Services
- Liquid Asset
- Make your own PayPal
- Automatic Accounting
- KYC (Know Your Customer)
- Loyalty Reward Points
- Shipping and Inspections
- Logistics (Supply Chain Management)
- Encrypted Messaging
- Authentication and Notarization
- Certificate Issuance
- Corporate Compliance
- Land Registry
- Access Control
- Stock Ownership
- ICOs (Initial Coin Offerings)
The NEM project is managed by the NEM Foundation, and the team has deep expertise in both technology and business development. NEM made the news in early 2018 when their coin was the target of the largest exchange security breach in history, where hackers stole over $500 million in NEM from Coincheck.
NEM (XEM) currently has a market cap of ~$300 million with a circulating supply of 8,999,999,999 XEM.
NEM is hoping to become the premier platform for enterprise smart asset development, and their focus on speed, security and development tools has propelled them to be one of the highest valued projects in the crypto space.
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Disclaimer: The author(s) of this article may have a position in one or more of the securities mentioned above. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.