What is NEM (XEM)? Explanation of this crypto
NEM (XEM) is one of the first blockchain projects focused on efficiency, security, and business applications. The network was developed to bridge the gap between traditional businesses and the world of digital currencies.
In this article, you will learn what NEM is, how the network works, and what it is used for. We will also look at which alternatives are available at Coinmerce for those interested in similar technologies.
In short
- NEM (XEM) is a blockchain platform focused on business and financial applications
- The network uses Proof-of-Importance instead of Proof-of-Work or Proof-of-Stake
- XEM is the network's native coin and is used for transactions and rewards
- NEM enables secure, fast, and scalable data transactions
- Coinmerce does not offer NEM, but there are alternatives with similar features
What is NEM (XEM)?
NEM (New Economy Movement) is a blockchain platform developed to create a new economic ecosystem. The network aims to allow businesses and users to exchange data and value quickly, securely, and efficiently without a central authority.
The network's coin is called XEM and is used for transactions, rewards, and network management. NEM was launched in 2015 and distinguished itself through its unique approach to consensus and its focus on business applications.
NEM was one of the first blockchains to introduce features such as multi-signature accounts, message transactions, and a reputation system for network participants. Unlike many other blockchains, NEM does not operate on proof-of-work or proof-of-stake, but uses its own mechanism called Proof-of-Importance (PoI). This system rewards users not only based on how many coins they hold, but also on how actively they contribute to the network.
Although NEM is no longer among the largest blockchain projects, the network still plays a role in the development of blockchain technology for businesses. Coinmerce does not offer XEM directly, but there are similar projects that pursue the same goals.
Price and history of NEM (XEM)
The history of NEM begins in 2015, when the project was founded by a group of developers who believed existing blockchains were not efficient enough. NEM was developed in Java and later in C , making it suitable for business applications and scalable implementations.
The price of XEM showed little movement in the early years, but surged in 2017 during the global crypto rally. In January 2018, NEM reached its peak with a market capitalization of over 15 billion dollars. At that time, it was one of the ten largest cryptocurrencies in the world.
After this period, the price fell, as with many other coins. The decline was worsened by a hack on the Japanese exchange Coincheck, where over 500 million XEM were stolen. Despite this setback, the project continued developing new technology, including Symbol, a successor to NEM focused on business interoperability.
Today, NEM is regarded as one of the early pioneers in blockchain technology. The coin remains in circulation, and the network is still maintained, although its market position has decreased.
What is NEM used for?
NEM was designed as a platform where individuals and businesses can create, send, and manage digital assets. The focus is on practical applications that integrate blockchain into existing business processes.
Applications and use cases
NEM's technology enables the registration of digital assets, such as property rights, identities, and documents. Companies can use the NEM Smart Asset System to customize how their blockchain is structured according to their needs.
One of NEM's most notable applications was collaboration with various Asian companies and governments. The technology was used to record real estate transactions, supply chain tracking, and logistics applications.
Additionally, NEM supports message transactions, allowing users to send messages or data alongside financial transactions. This makes the network useful for communication, administration, and IoT applications.
Why networks like NEM can be interesting
NEM is attractive to organizations that want to use blockchain without complex development projects. The network offers flexibility, scalability, and ease of use. Companies can leverage NEM's existing infrastructure without building their own blockchain.
Its modular design allows users to easily add components such as multi-signature functions, namespaces, and mosaics (digital assets). This simplicity makes NEM accessible for business applications that require speed and reliability.
How NEM works in broad terms
NEM works differently from many other blockchains. Instead of mining blocks, the network uses the Proof-of-Importance mechanism. This system rewards active participation rather than just coin ownership.
Network concept and transactions
Any user with at least 10,000 XEM can participate in the network through harvesting, the process of validating transactions. Instead of energy-intensive computations, NEM uses a reputation system that considers the amount of XEM held, transaction frequency, and interaction with other users.
Transactions on the network are fast and cheap. The average transaction time is under 30 seconds, and costs are often less than 0.01 XEM. This makes NEM suitable for micro-payments and business processes where speed is important.
The network uses nodes that communicate with each other via the NIS1 protocol. These nodes keep track of transactions and ensure network security.
Wallets and secure storage
To store XEM, users use the official NEM wallet, also known as the NEM Nano Wallet. This wallet supports transactions, harvesting, and managing multiple accounts.
Users can store XEM in a software wallet, but also opt for hardware storage using devices such as Ledger. This provides extra protection against hacks and unauthorized access.
Although NEM is not directly offered via Coinmerce, similar assets can be stored in wallets supported by Coinmerce, depending on the available projects.
NEM vs other projects
How NEM differs from similar networks
NEM stands out from many other blockchains due to its Proof-of-Importance system and its focus on business applications. While many projects focus on DeFi or consumer applications, NEM focuses on interoperability and enterprise integration.
Compared to Ethereum, NEM does not use heavy smart contracts but a modular system of assets and namespaces. This makes it easier for companies to implement blockchain functions without writing complex code.
Compared to Bitcoin, NEM is faster and more energy-efficient, while compared to newer networks like Stellar and Algorand, it is less actively developed. Nevertheless, NEM remains an important example of how blockchain can be applied in the traditional economy.
Alternatives to NEM at Coinmerce
Although NEM is not offered at Coinmerce, several alternatives are available with similar goals and functions.
Stellar (XLM)
Stellar is a blockchain network, like NEM, focused on fast and low-cost transactions. The network is widely used for cross-border payments and exchanging digital currencies. Stellar emphasizes financial inclusion and collaborates with banks and fintech companies to make transactions more efficient.
Stellar's consensus is based on the Stellar Consensus Protocol (SCP), enabling fast validation without mining. This makes the network energy-efficient and scalable, similar to NEM.
Algorand (ALGO)
Algorand is another network that focuses on speed and reliability. It uses a Pure Proof-of-Stake mechanism, allowing transactions to be processed within seconds.
Like NEM, Algorand provides a platform for building business applications. The network supports smart contracts and emphasizes security and transparency.
For users interested in technological innovation and scalable applications, Algorand is an attractive alternative.
NEO (NEO)
NEO, also known as “Chinese Ethereum,” is a smart contract platform focused on the digital economy. It provides tools for digital identity, assets, and automation, similar to NEM's business functions.
NEO stands out with support for multiple programming languages and a focus on compliant blockchain solutions. For users interested in the business side of blockchain technology, NEO offers a powerful environment with many development possibilities.
Frequently asked questions
What is NEM (XEM)?
NEM is a blockchain platform launched in 2015, focused on speed, efficiency, and business applications. Its native coin XEM is used for transactions and network management.
What is NEM used for?
NEM is used for digital assets, business applications, and fast transactions. Companies use the network to record data, handle financial transfers, and manage identities.
Is NEM still active?
Yes, NEM is still active. Although attention on the project has decreased, the network remains operational and updates are maintained by the NEM Foundation.
Which wallet do you need for XEM?
The official NEM Nano Wallet is suitable for storing and managing XEM. For extra security, a hardware wallet such as Ledger can be used.
What are alternatives to NEM?
Alternatives to NEM include Stellar, Algorand, and NEO. These networks offer similar features such as fast transactions, business integration, and support for digital assets.