In January 2018, the NEM project was in the top 10 and its capitalization fluctuated around $ 17 trillion. Today, the value of the cryptocurrency XEM amounts to $ 0.11, has a capitalization to less than 1 trillion. (17th place)
How far is NEM impacted by this bear market? Will she be able to go back and find a big capitalization?
History
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The idea of creating the NEM cryptocurrency appeared on the popular bitcointalk forum, and this part in criss-crossing the NXT cryptocurrency. Gradually, its concept developed, and a new project appeared with its own source code and slogan "New Economic Movement".
The NEM network was launched in spring 2015, and it was not until summer 2017 that it emerged as a market leader. Then there was the first news about NEM-based development tests by Japanese companies, and the launch of a test network for bank transfers. In December 2017, NEM developers announced the integration of their wallet to Wechat instant messaging, with an audience of nearly a billion users! The impact of this news was remarkable! (+ 150%)
However, the year 2018 was bad overall for NEM. At the end of January, $ 400 million worth of XEM tokens were stolen from the Japanese Coincheck exchange. After that, in April, NEM Fund Manager Lon Wong and Vice President Jeff MacDonald resigned simultaneously. Officially, they announced that they would stay in the project as advisors and decide to focus on the application of the platform in the business sector.
In May 2018, the long-awaited Catapult update helped secure the Cryptocurrency blockchain, making it faster and more convenient to use. But the expected positive effect of this news did not last, because of a bear market environment.
Development Directions
The personalized payment system allows for fast transfers and minimum commissions. It can be used by individual users and banks. This network is somewhat similar to XRP cryptocurrency.
The second direction is about smart contracts. In the NEM network, you can conduct ICOs, run your own applications, scan assets, and create management systems for them.
Ability to launch corporate blockchains. This is a unique offering for businesses that allows them to manage their own networks by interacting with the public NEM blockchain.
The mining of NEM
The NEM platform uses an original model of mining, called "harvesting". The network operates according to the Proof-of-Import algorithm. This is a modified mining algorithm based on the proof of principle.
There is a difference between the Proof-of-Importance algorithm and the other algorithms. In addition to the cryptocurrency, every miner has a reputation. The bigger it is, the greater the chances of creating a new block. The reputation system takes into account various parameters such as the duration of storage of cryptocurrency, made transactions, number of blocks mined, etc.
Supernodes, which must be permanently connected to the Internet, are responsible for the operation of the network. It must have a minimum of 3 million XEM, and meet certain technical requirements. Miners connect to these supernodes, and must also have a minimum number of XEMs to begin mining: You must have 10,000.
The distribution of cryptocurrency is as follows:
Conclusion
The capabilities of the NEM cryptocurrency and the level of development of its technologies indicate the great potential of this platform, which can be useful for ordinary users and sales representatives. But for the growth of NEM, there should be more news on large partnerships. Wechat, but, unfortunately, this cooperation has not yet been brought to a significant extension of the scope of use.
