NEM Overview

The NEM cryptocurrency shares many things with Bitcoin and other popular digital coins. It operates on a blockchain platform, supports peer-to-peer transactions, and offers a certain amount of anonymity. Key differences are that the NEM platform is written in Java. The founders have also stated that there is a C++ version being developed at the present time. It was originally conceived as a fork of Nxt but these plans were abandoned in favor of an entirely new source code.

The History of NEM

NEM has a rather interesting history. The digital currency was initially developed by an anonymous user on the Bitcoin Talk forum using the handle UtopianFuture. In this regard, there is also some similarity to Bitcoin’s origin which is believed to be the work of numerous developers using a fictitious name.

In January of 2014 there was an open call on the forum for participants in NEM’s development. It was a stated goal from the very beginning that NEM would be a community effort. The desire was to create a new cryptocurrency from the ground up. In the early stages the currency was not a legal entity. This created some issues with how the original participants were rewarded for their participation. There are now efforts to create an actual entity to support the further development of NEM.

By March of 2015 there was a stable version of NEM available, and 2017 promises new and more stable updates to the platform. Currently NEM supports the use of a browser-based wallet known as the NanoWallet. This wallet functions along with the NEM Infrastructure Server as the two core components of the platform.

There are multiple security protocols enabled for NEM which make it an attractive alternative to Bitcoin. It has assumed a place as one of the most popular Altcoins on popular cryptocurrency exchanges. Another attractive element of this digital coin is that it seems to be less volatile than some of the other options at the present time. 

NEM Mining

Mining is the process by which new digital currencies are created. Typically, the mining process involves using dedicated computer equipment to solve complex mathematical problems. Those who contribute to solving these problems, or “mining”, are rewarded with NEM units.

The mining of Bitcoin and similar coins involves an algorithm referred to POW or Proof of Work. NEM uses another algorithm known as Proof of Importance. What this algorithm does is open up the process of mining to light clients without a need for running the full NEM blockchain. A problem, however, is that the Java version of the code is closed source. It is believed that the upcoming C++ version will be open source.

To mine NEM could likely be beyond the scope of the cryptocurrency hobbyist. Specialized computer equipment is required that consumes a vast number of resources. Mining rigs also use a large volume of electricity. These factors cause some individuals to pursue other options for mining their own coins.

Mining pools like those offered by Genesis Mining are a more economical and practical way to mine cryptocurrencies. While all digital coins are not available to be mined in this fashion, those who participate can mine Bitcoin, Ethereum, and more. These coins can then be switched for others via a cryptocurrency exchange. A mining pool offers the advantage of not having to purchase or maintain expensive mining equipment. The participants purchase hash power and then share the coins they are able to mine.

NEM Use and Acceptance

There have been many recent developments regarding NEM which are positioned to make it easier for both offline and online retailers to accept the currency. Chief among these is the opening of a Blockchain Center in Malaysia. This facility will house an innovation lab for the continued development of NEM.

The software used for the NEM blockchain is also being used in a commercial blockchain which is known as Miijin. Certain financial institutions and companies in Japan have begun testing this software and integrating it into their payment processing systems.

Because NEM is still a fairly new player in the digital currency market, there are few online or offline retailers which are able to accept the coin for payment at this time. This is expected to change with the overall growth of the cryptocurrency market.

The most attractive option at the present time may be to consider NEM for investment purposes. This can be accomplished through a variety of exchanges.