There are some cryptos that when you really dig in to who they are and what they do, allow an intelligent person to know "yes this has HUGE potential". NEM is one of them. It has been in he top 10 for ages, but has yet to skyrocket. None of my favorite you tubers are talking about NEM even after its most recent rise in price. Please see my summary below/ do you own research and decide for yourself.
NEM ($XEM) Analysis
Executive Summary
NEM, launched in 2015, is touted as the world's first Smart Asset blockchain built from the ground up with new code. Although NEM can be compared to Ethereum in the now crowded Smart Contract space, it is more comparable to NEO in the space of creating Smart Assets on the blockchain. The Smart Asset function is essentially tokenizing or digitizing physical assets. NEM as an enterprise solution is not only market ready, but has market adoption in the Smart Asset space.
NEM News and Facts
The Japan Gibier Promotion Association, a division of the Japanese Ministry of Agriculture, Forestry and Fisheries will use blockchain technology to secure the supply chain of Japanese wild game meat using the NEM platform. This adoption not only highlights NEM’s usefulness, but it’s versatility. The implementation will be using NEM’s private blockchain called Mijin.
NEM is working with Blockchain Global in Australia to build the first NEM dedicated exchange.
NEM has the second most ICO’s to Ethereum. One recent company boasted that his developers were able to code in half of a day for the ICO, highlighting NEM’ ease of use.
WeChat, whose chat app is the largest in Asia, added NEM as the first cryptocurrency to be accepted on the app.
NEMs founder, Long Won was selected to be a blockchain advisor to SNAP Interactive, a leading provider of live video social networking applications building on blockchain and other innovative technologies.
New Japanese crypto exchange created by DMM, successful currency exchange company, will add NEM among 7 tokens to start.
NEM Core Products
Smart Assets is one of NEM’s top selling points, but the platform offers other notable features. As I mentioned, NEM offers a private permissioned blockchain called Mijin that can seamlessly transact with the NEM blockchain. The application of the private blockchain caters to the enterprise. Company A transacting with Company B may want the benefits of writing transactions using immutable blockchain ledger technology, but may likely not want their transactions public. Said companies could privately transact digitized assets with one another on the private chain. This has implications for R&D, Mergers and Acquisitions, and simply transacting dissimilar currencies including cryptos.
NEM’s provided outline of configuring Smart Assets shows to be extremely user friendly, not requiring blockchain programming experience. Custom APIs can be built using C#, Java and soon C++. Enterprise programmers needing to build DAPPs for NEM would not have to learn a proprietary language such as Solidity on Ethereum, but can use the skillsets they are accustomed to when building on NEM.
NEM’s Smart Asset System allows users to define and create their own tokens or cryptocurrency with no programming. This opens NEM to the rapidly increasing ICO fundraising market, which is roughly $100M presently, as a viable ICO launch platform. What sets the NEM platform apart from others in the ICO space is their commitment to value and substance. Firstly, NEM scrutinizes companies wishing to launch an ICO. NEM foundation’s very visible President and founder Lon Wong has publicly stated that companies wishing to run ICOs on NEM will have to go through a rigorous pre-application process to determine if the project is viable and simply put, not a scam. 90% of ICO submissions are rejected from being considered to launch on NEM. Recently, Japanese FinTech giant Tech Bureau, has recently launched an ICO on NEM for the newly formed COMSA. This is notable because it will be the first Japanese ICO platform, which will run on the NEM platform. COMSA will adhere closely to Japanese ICO regulations, not only vetting startups, but nurturing them through the funding process and beyond. It is also important to note that Japan is one of the most cryptocurrency friendly nations to date, having legalized Bitcoin in April of this year and recently licensing 11 cryptocurrency exchanges. Japan has recently become the biggest trading center of Bitcoin. With NEM having the bulk of its customer base in Japan and South-East Asia, it finds itself poised to be a big part of Japanese interest in cryptocurrency. NEM’s popularity in Japan can arguably label it the Japanese Ethereum as some have called NEO the Chinese Ethereum.
XEM Token Utility
The native currency on the NEM platform is the XEM token. Each transaction on the platform requires small amounts of XEM. This includes listing assets, transacting assets, running ICOs, messaging, notary validations, financial payments, mobile payments, trustless escrow services and payments on the PayPal like application NemPay.
XEM has a fixed supply of 9 billion XEM and uses the revolutionary Proof of Importance Model (POI) as opposed to Proof of Work (POW) and Proof of Stake (POS). Nodes securing the network in the POW model are rewarded by mining coins using computing power and electricity. Besides massive energy consumption, another flaw of this model is that it allows large mining pools to dominate the market and render something that was designed to be decentralized, be somewhat centralized.
The POS model rewards coin holders more coins in proportion to their holdings. Although this model solves the energy consumption issue, the disadvantage is that larger holders have an advantage in receiving rewards. Also, staking computers need to have their wallets unlocked and the computer on in many cases.
The uniqueness of NEM’s POI is that it uses the term Harvesting as opposed to mining or staking for rewards. POI considers two factors:
Account holdings 10,000 XEM are required to harvest, which is vested over a period of roughly 10%/day so that by buying in you are not instantly eligible. This also ensures that “trust” is built over a period.
Amount of account transactions and who they transact with Accounts are algorithmically scored for reputation to ensure that bad transacting nodes are less “important” and can have less potential in harming the network. The higher the score, the higher the chances of harvesting rewards and vice versa.
Harvesting can be done from a wallet whether the computer is turned on or not making this model eco-friendly. Other nodes with less than 10,000 XEM can delegate their vested balance to harvesting nodes with high reputations. Both are rewarded for harvesting. This strengthens the network even more where higher reputation harvesting nodes have additional strength borrowing from nodes who delegate their tokens.
NEM Performance
Transactions on NEM currently take 10-30 seconds, which compared to Bitcoin and Ethereum represents a significant advantage. NEM has implement it’s Catapult upgrade on the private NEM blockchain Mijin. Current tests using Artificial Intelligence simulated 10.8 Billion accounts transacting into one account for an hour. The results were impressive where transaction speeds exceeded 4,000 transactions per second, which rivals Visa’s payment network. Ethereum’s Raiden and/or Plasma solutions are expected to perform transactions at similar speeds, but NEM has is a first mover ahead of Ethereum. Catapult should be on the public NEM blockchain Q1 2018 by all reports.
Conclusion
I believe that the Smart Asset economy will have more immediate use case impact in the enterprise before Smart Contracts. NEM is quietly leading the charge, but has recently gone from simply putting in the work, which is commendable, to marketing it’s potential. “Cryptocompanies have 2 choices: waste time pumping their coins through marketing or focusing on product development…” NEM has done the latter and can now focus on the former. With a re-branded website, a renewed dedication to presenting NEM in Asia and internationally, weekly social network reporting and a vibrant community, NEM is displaying its full potential as a market leader. NEM was 20 cents on 11/25/2017, today it sits at around 1.50. I am extremely bullish on XEM in the mid to long term. I expect the Catapult upgrade to launch NEM into the cryptocurrency limelight where it should remain.
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