✔️ Information reviewed and updated in April 2024 by Pedro Martínez González

Cryptocurrencies not only turn out to be a fairly innovative way of using money, making investments or paying for a purchase. These digital currencies like NEM also have the characteristic that they can be used as a powerful tool for project development and even for espionage.

That's right, NEM is said to be so powerful and so perfectly designed that, if a government wanted to, it could use it as a spy tool. Here we will tell you what is behind the so-called "sleeping giant of cryptocurrencies" and why you should see it again.

✨What is NEM? ✨

Known as the social cryptocurrency, NEM is the acronym for New Economy Movement or movement of the new economy. NEM is actually a virtual payment platform which works through a P2P system which operates with a cryptocurrency called XEM.

The Blockchain is the basis of this cryptocurrency, although here we can find that it has been taken to the next level. And it is said that NEM is the future because its developers created a system that allows adding improvements or Features to the main blockchain by updating and improving it.

Some of the characteristics that we can find in NEM is the use of a Harvesting or Coins cultivation system for the production of the same, which replaces mining.. Also included is a new algorithm which is named POL or Proof of Importance which focuses on improving transactions.

The basis of this project developed in Singapore is in a fork of an open source platform called NXT. Its main purpose is to create the cryptocurrency of the future with improvements that allow a more efficient, safe, participatory and fair operation.

✨Advantages between NEM versus other cryptocurrencies✨

• Algorithm: The first difference we find between NEM and other cryptocurrencies is in the algorithm that it uses. Thanks to the use of the PoI (Proof of Importance) algorithm, it is possible to give greater importance to the amount of money invested in the platform.
• Rewards: Similarly, the use of the PoI algorithm allows users to be rewarded according to the amount of money invested and the virtual currencies stored in their Wallet. Thus, rewards are given for the commissions generated by the transactions and blocks, which is a benefit for the user.
• More accessible: Another point in favor of this cryptocurrency is that the inclusion of the PoI makes mining and, in general, transactions much more accessible. This is because it is possible to break a block in the chain with a low amount of energy and much fewer transactions.
• Mined: Mining in NEM is different, since this platform takes in favor the frequency of use of the platform that, according to the type of Hardware, or its power, used in mining. This way, anyone with a GPU or the MinerGate App for smart mining can perform NEM mining.
• Community: Compared to Bitcoin, for example, NEM is more than a cryptocurrency since it forms a community which is in charge of managing the processes, as well as taking advantage of the benefits of the platform. In this way, an environment focused on taking advantage of the blockchain and its benefits is created.
• Smart Assets: Finally, we can find an exclusive function which is known as smart assets or Smart Assets. This function allows you to place valuable documents such as patents or property titles to which a value is assigned in NEM coins, for example, to later sell them at better prices.

✨The secret behind✨

As we already quote you, NEM operates with its own Blockchain technology which is responsible for optimizing its operation. For this, NEM incorporates a function which allows it to include updates or Features directly to the blockchain, thus helping to solve different types of problems.

Another technological feature that makes NEM shine is the use of a different, newer, more powerful and accessible algorithm, the PoI, which allows smart contracts to be executed much more easily. In addition, it makes possible the launch of Smart Assets or smart assets.

You should also know that NEM is made up of two components, the first is the “NEM Community Client” (NCC) component. On the other hand, the second component is a type of server, the “NEM Infrastructure Server” (NIS) server. This allows the cryptocurrency to be fully decentralized, thus making its operation more efficient.

The main characteristic that we can find in the use of the PoI algorithm is that this helps deflation not affect the currency, as well as reducing price fluctuation. The main objective behind this technology system is to make transactions more efficient.

✨Mining✨

The mining process is totally different in NEM, since here instead of mining blocks, these are seeded to generate coins. That is why you must start with an investment of 10 NEM Coins which are stored in your Nano Wallet.

After a certain time, the coins become blocks which are responsible for generating commissions for each transaction made. This means that, instead of you having to mine blocks, you have to sow them to little by little generate commissions that help you earn many more coins.

✨How to buy it? ✨

There is only one option to obtain NEM, this because the Harvesting process requires that you already have NEM in your account. That is why the only option is to buy these cryptocurrencies, which is relatively advantageous, since the process is easy.

Although these coins are not very popular in European exchange houses, we can find them in many Asian exchange houses. Similarly, there are options in some Western exchanges because the technology behind NEM is making it more relevant in the market.

About the Author: Pedro Martinez Gonzalez

I'll tell you a little about myself! I am a financial analyst and economist with a master's degree in finance.
About my studies: I studied at the University of Salamanca for a Degree in Economics and then did a Master's in Finance in Madrid.
Do you want more information? You can read more about me here in my biography.

You can read more about me here.