After discovering Bitcoin a few years back, it took me a while before trusting the rest of the altcoins. In retrospect, I really wish I would have paid more attention to them.
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Sure, there are a lot of scam coins that are nothing but useless clones of more established coins, but if you spend enough time going through the trash you will find gems.
There are many cryptos that are much more than ‘coins’, like the rise of Ethereum shows, there is a lot of room for growth for those coins that bring innovative solutions to real-world problems.
My last investment/ discovery has been NEM, a blockchain platform that offers enterprise solutions to business looking to implement blockchain-based technology in their operations.
What I really like about NEM is the fact that developers are given a lot of freedom to create an almost infinite array of blockchain apps. It helps innovation and the development of the technology which is something I want to support.
Before you go any further, you should quickly check out the NEM whitepaper to get the real insights as to why this platform has so much potential.
Since I have gone through that paper a few times and have spent a considerable amount of time watching videos and reading opinions about it, I’m going to tell you the main reasons why I have decided to invest in NEM.
Is not a bad idea to watch their new introductory video, they go through the main points of why NEM is such a promising platform:
Innovative and efficient from the ground up
NEM is newer than Bitcoin (launched in March 2015), it was coded, from the beginning, to be efficient, scalable, fast and taking into consideration all the issues Bitcoin (and other cryptos) went through.
It uses a unique way to reward participants in the network, you might have heard about Proof of Work (POW) and Proof of Stake (POS) rewards which have been integrated into other cryptos to reward participants.
NEM is the first crypto to integrate Proof of Importance to its algorithms which promises to make the network much more equal to all and not benefit coin hoarders (like in POS does) or miners with almost infinite resources (like POW does)
The idea of POI is that you will get more rewards from harvesting (there is no mining on NEM, but you get rewarded by harvesting instead, I will explain this in the next paragraph) the more important you are to the network. Your importance is given by a mixture of the number of coins you have, the length of time you hold these in your wallets and a number of transactions you make.
So basically, the more you use the network with a long-term stake, the more rewards you get.
So what is harvesting you ask? Well, I could write it all out, but I found an extremely useful video that explains it step by step, figured it would be just easier like this:
Ease of use for developers
NEM offers an amazing API that allows for any programming language to be used providing all programmers with the ability of develope on NEM with the language they are most confident with.
This also allows for ease of integration with existing systems which should make NEM the choice for enterprises with existing systems who want to change to blockchain solutions without having to start from 0.
NEM’s blockchain exposes its functionality through a powerful API interface that can be used with any programming language, not a specific “smart contract” language. Existing business logic code can easily mate up and use blockchain where it’s strongest: secure transactions and ledger keeping. In short, configure NEM for your business, and then deploy blockchain incrementally and without forced retooling of existing infrastructure.
If there’s one thing I believe in is ease of use, those platforms that make it as easy as possible to integrate them to already existing systems will be the ones chosen. I think NEM has a great chance to establish itself as the most user/developer friendly platform on the market.
Even more secure than most blockchains
The Blockchain is by default very secure and hard to hack, you would literally have to hack all nodes in the system in order to compromise the data within it, which of course is such a big undertaking is pretty much impossible to orchestrate.
NEM takes that security even further by using a trust-based algorithm and allowing developers to choose between a private and public blockchain solutions. The architecture of the system is geared for security:
NEM’s architecture provides an incredibly secure and stable platform through its use of Eigentrust++ and an incentivized public node network based on its two-tier architecture. The significant risks inherent in on-blockchain “smart contracts” are eliminated by providing building block customization to NEM functionality that keeps application security in your hands, not on the blockchain. And NEM’s private blockchain option allows complete control over internal data privacy when a public blockchain isn’t the right solution.
NEM it’s both Public and Private blockchain solution
This means NEM is one of the few platforms offering enterprise solutions to business, unlike other cryptos, it does not attempt to fight centralization and the status quo, rather, it wants to offer a solution to businesses looking to integrate blockchain to their operations.
The private version of NEM is called the Mijin platform and it promises to become the go-to platform for all enterprises looking to jump onto the blockchain revolution.
Public blockchains such as NEM allow anyone to join the network to freely share and receive data. However, most businesses require their information to be kept confidential. In such cases, NEM provides a customizable approach through their permissioned ledgers an based on NEM technology, Mijin provides this powerful functionality. In such cases, NEM provides a customizable approach through a private permissioned ledger option based on the same NEM platform technology. Tech Bureau provides an excellent packaged NEM private blockchain solution in the form of their Mijin product.
NEM provides the ability to seamlessly build upon any previous systems that have been developed in the blockchain arena, without the need for rewriting any existing code.
Super Fast Transactions
Takes about 6 seconds to happen and around 20 to confirm, the speed might reduce as use increases, but this effect will be countered by more supernodes joining the network and sharing the load
So, in theory, the networks will always remain as fast as it is now, which is always a great factor when it comes to mass adoption.
One of the lowest transaction fees in crypto
0.01% when using the official nano wallet so paying 10 cents to send $1000 does seem like an incredibly good deal.
Add this to the fact your transaction will get there almost immediately, you can see NEM has the potential to become a method of payment that makes a lot of sense to use.
It is transparent, not private
I know lot’s of people want absolute untraceable and private transactions, which is s great thing under certain circumstances, but there are other coins you can use to buy your drugs, NEM is not for that.
That said, keep in mind that 100% private transactions don’t tend to do very well when it comes to mass adoption, Bitcoin itself got in a lot of trouble in the past (still suffers from this) because it’s connection to black/illegal markets and money laundering, NEM does not suffer from this putting it in an excellent position to be used as a legit and transparent way of payment for customers and business alike.
It allows for customer protection and tracking of spending habits, which are incentives for mass adoption for businesses and customers alike.
It can be used for any type of asset or ‘Mosaics’ as they are known within the system
NEM is an extremely malleable and dynamic blockchain it can be used for an almost infinite amount of assets. Any asset can be turned into a Mosaic and transferred/stored in the blockchain.
Take XEM, the defacto cryptocurrency of the NEM blockchain. XEM is a mosaic within the NEM platform that allows for the transfer of value, the same way you can create XEM, you can digitalize and store any other type of assets as a different Mosaics.
Whether it be digital content like video, documents filled with important information, databases, code, anything can be created into a mosaic and integrated perfectly within the NEM system. Everything can be encrypted and kept both safe and accessible to everyone within the system
This is a very powerful aspect of NEM as it allows business to implement blockchain solutions to any of their assets, whether it be for internal use in a private secure blockchain or for public use and accessible to a larger audience.
The more the platform it’s used, the higher the price of XEM
Ok, let’s clarify this: On one side you have NEM which is the blockchain system used to develop a solution for both businesses and the public, on the other hand, you have XEM which is the cryptocurrency within NEM used to move value around.
The really cool thing about the system is that it always needs XEM to do transactions/move information around/ do whatever tasks it was designed to do.
Think about it for a second…
If the value of XEM if given by the relationship of demand and supply, and the supply of them is locked at 9,000,000,000 (XEM does not suffer from inflation as this total supply will never change) what do you think happens as more business build blockchain apps on NEM?
That’s right! The more NEM is used by enterprises, the higher the demand of XEM thus the higher the price!
Is a perfect reward system for long-term holders and investors, the more apps that use it, the higher the demand, the higher the price! Add this to a system based on Proof of Stake and Proof of Importance means the token will continuously increase in value ensuring the happiness of all stakeholders.
Why I’m sticking to my decision to buy NEM
NEM, in many ways, acts as a self-fulfilling prophecy promising to constantly increase in value as more business use it to bring solutions to the public and internal operations.
Using NEM as a springboard, businesses can quickly (and seamlessly) start enjoying the advantages a blockchain system offers, in the quickest way possible.
The more businesses on board the more resources and incentive there are to keep improving the platform. A platform that was, from the very beginning, designed and coded to be more efficient, faster and easy to use.
So yea, the more I read about NEM, the more I understand just how powerful it is as an enterprise platform. It really excites me to think about the potential it has, can’t wait to see what kind of fruits my investments gives in about 10 years.
The fact NEM is widely accepted and popular in Japan (one of the most visionary countries when it comes to the blockchain) just validates my hopes about this.
What do you think? Have I missed anything or misinterpreted any point in this article?
Please let me know your opinion in the comment section below.
If there’s one thing I love (more than NEM) is extra reasons to go research this topic more. What you got?