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NEM Blockchain

In this article we are going to talk about NEM, a blockchain platform that brings certain news about Bitcoin and Ethereum.


NEM started from a Bitcointalk user who wanted to improve Nxt, but together with a team of developers launched in Singapore the NEM.io that started from a development of the blockchain from scratch.

Features of NEM

The performance

This blockchain platform was designed in 2015 and was implemented from the base thought for speed and scalability. The transaction rates per second far exceed the Bitcoin and Ethereum network.

The ease of development

At the development level, it offers a JSON REST API that can be used with any programming language. It adds ease when implementing a blockchain strategy in the current business processes of companies.

The customization

NEM was built from scratch with modular customization for any application. It is what is called the Intelligent Assets system. This allows us to focus on the concrete construction of what we need, be it a system for fintech, for logistics, an ICO, etc ...


In terms of security, the NEM architecture implements Eigentrust ++, which is an algorithm that allows network nodes to assess the reputation of the other nodes and reject the "bad" ones and balance the load across the entire network. The NEM nodes implement an antispam filter.

The technology behind NEM

NEM was built from scratch using Java technology. Each node called NIS (NEM Infrastructure Server) uses well-known libraries such as Hibernate and Spring. It has its own wallet, which is called "nanoWallet" and is developed in Javascript.
In addition, the nodes have two main functions: the first is to provide a gateway through an API so that the Dapps (distributed applications) can communicate with the blockchain. This API is based on JSON, and allows both mobile devices, web applications, or existing business applications to communicate with the information registered in the blocks.
The second is that each node serves as a piece of the P2P network.
The network of nodes is incentivized by harvesting, which allows you to receive rewards from the commissions that are applied to the transactions. Unlike Bitcoin and Ethereum, they do not create cryptocurrencies in each block, so the issuance of their cryptocurrency "XEM" is stable.
A characteristic of the collection, is that it can be done by assembling one's own node or through another, through delegate collection.
The NEM-based solutions allow two models: a public blockchain or a private blockchain.

Among its features we can find:


The namespaces are similar to the domain names on the web. We can find root namespaces and subnamespaces. This allows the same organization to create different subdomains for different projects.


Mosaics represent digital assets, which are stored under a namespace and subnamespace. XEM is in turn a mosaic. These mosaics facilitate the task of creating Tokens, licenses, contracts, etc ...

PoI (Proof of Importance)

It is the algorithm used in NEM. The importance of a user depends on the number of coins he has (and time) and the number of transactions he has made with his wallet (input and output). It's like an improved PoS (Proof of Stake).
To enter the relevancy calculation, the account must have at least 10,000 XEM expired.


It is the task of creating the blocks of the NEM network. What is usually called "mining" in Bitcoin and Ethereum. To be able to perform this task you need the expired 10000 XEM account.

Messages in transactions

It is possible to include messages (even encrypted) in transactions.

Multi-signature transactions

One of the characteristics of NEM is that we can create multiform transactions. That is, a transaction will require several users to sign the transaction before it is included in the blockchain. This is also an extra security measure for theft of wallets, since they can not get the accumulated money without the signature of the other participants. In the same way it helps to protect the funds of wallets of organizations, since the signature of all the members of the account is needed, to remove the money.

XEM, the cryptocurrency created for NEM

Transactions in the NEM network require small commissions that are paid in XEM, the native cryptocurrency of NEM.
XEM can also be purchased at some exchanges and its current value is 0.02 $.
There is a public TEST network where you can test blockchain applications without having to spend real money. As a cryptocurrency for the investor, it offers some very interesting features.
The costs of creating namespaces and nem mosaics is:

The scalability of the network: the NEM network has tremendous scalability, which means that no app can limit its performance.
Ease of use of NEM: a bet was made for usability, the availability of the use of the network for people who are not programmers. Without special abilities, you can create your own ICO on the NEM platform and create your own cryptocurrency.
Protection against forks: Bitcoin's last fork showed that it negatively affects the health of the network: it increases the volatility and the unpredictability of the rate of the currency, the performance of the network is reduced, since some of the miners change to support the fork of the other network. Divide the user community already formed due to problems with consensus, the complexity of the modernization of the network is growing.
In NEM these risks are absent due to a closed server code, low power consumption, economic activity in the network and the reputation of the user, so the network will never have problems to find a consensus.
Network security: thanks to Eigentrust ++ technology, the NEM network is protected against attacks. Any member of the network who tries to perform malicious actions on the network will immediately lose the trust of other NEM nodes and their actions will simply be ignored by the network.
Stimulation of the economic activity: each common user can dedicate himself to "mining" in the NEM network without large investments and complex mining rigs. This process is called harvesting (harvesting) and to put it into practice, you must have at least 10000 XEM in the portfolio, with greater economic activity of a user you receive more transactions, and the higher your level of importance and, consequently, you will have more likely to receive a reward.

In conclusion

NEM is a blockchain technology with a long-term growth capacity and can be a very important option for the technological transformation of governments and companies, compared to Ethereum and its smart contracts.
It also eliminates the unnecessary waste of energy associated with the PoW (the work test) that other blockchain platforms such as Bitcoin and Ethereum maintain.

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