NEM is a peer-to-peer cryptocurrency and blockchain platform launched on March 31, 2015. Written in Java, with a C++ version in the works, NEM has a stated goal of a wide distribution model and has introduced new features to blockchain technology such as its proof-of-importance (POI) algorithm, multisignature accounts, encrypted messaging, and an Eigentrust++ reputation system. The NEM blockchain software is used in a commercial blockchain called Mijin, which is being tested by financial institutions and private companies in Japan and internationally.
|0.000001||µXEM (microXEM) - smallest unit|
|0.001||mXEM (milliXEM) - thousandth unit|
|Date of introduction||2015|
|Genesis Block Production||Fixed 8,999,999,999 XEM total|
Block time 1 minute
NEM technology allows multiple ledgers to coexist on one blockchain. Thanks to NEM Smart Assets users can create mosaics which can represent any asset (e.g. currency). All transactions in NEM have transaction fee associated with them and denomination used to pay for transactions is mosaic named XEM.
In 2017 the NEM Foundation opened a center in Kuala Lumpur, Malaysia, to serve as an incubator, accelerator, and co-working space.
The NEM developers are pseudonymous. NEM was started by a Bitcoin Talk forum user called UtopianFuture who was inspired by Nxt. The initial plan for NEM was to create a fork of NXT, but this was eventually dismissed in favor of a completely new codebase. Starting on January 19, 2014, an open call for participation began on the Bitcointalk forum. The goal of the call was to create a community-oriented cryptocurrency from the ground up.
In April 2016, Tech Bureau, the operator one of Japan’s largest cryptocurrency exchanges, Zaif, formed a partnership with NEM for a new blockchain engine.
On 26 January 2018, Japanese cryptocurrency exchange Coincheck, was the victim of a massive hack resulting in a loss of 523 million XEM coins, the native token of NEM, worth approximately $400 million. The hack only involved NEM, because the security breach was caused by the lack of strong security measures of Coincheck with regards to their implementation of NEM, lacking the use of mutlisignature support or a cold wallet. The NEM development team refused to conduct a hard fork. Instead NEM is created an automated tagging system. This automated system followed the money and tagged any account that received tainted money. The result of these actions was that NEM stopped tracking the stolen coins approximately mid-March 2018, after concluding that enough data was provided to the law enforcement authorities.
Another client was the NEM Community Client (NCC). The NIS is connected to the P2P network and acts as a gateway for the NCC. The NCC is client software that includes a wallet. The NCC has since been deprecated in favor of the NanoWallet. Both NCC and the NanoWallet can be run isolated from the internet, providing security through an airgap.
Namespaces on the NEM system are a domain naming system similar to the internet's centralized ICANN domain name system. Within namespaces, there are higher level domains and subdomains. This allows one person with one domain to create many different subdomains for their different projects or outside business accounts. It also helps to build and maintain a reputation system for Mosaics.
Reputation and harvestingEdit
NEM uses a system called "Apostille" to notarize documents and make timestamps; Apostille creates a key based on the data in the transaction.
NEM employs an Eigentrust++ as a reputation system. NEM ensures the health of the blockchain by monitoring past behavior of nodes within the network. In proof-of-work, the amount of work a node does is used as a measure for its ability to protect the network. But, with Eigentrust++, it is the quality of work that is important. This adds to the NEM network's ability to be run and maintained efficiently.
NEM uses a "proof of importance" (POI) to score how people can harvest XEM; a person has to have 10,000 XEM in their balance to be scored, and the number of transactions they have with others. to time stamp transactions.This was designed to encourage users of NEM to not simply hold XEM but instead actively carry out transactions.
NEM implements multisig (short for multi-signature) technology on its platform. Specifically, NEM implements m of n multisignature, where m ≤ n. This means that m out of a total of n signatories must sign a transaction before it can be broadcast onto the blockchain. NEM's multisignature works by making a contract on chain so that the "m" accounts have full transaction privileges over the account that has been turned into a multisig account. Since the contract metadata is on chain, it can easily be updated by adding or subtracting additional signers given that the required number of parties agree on it.
Mijin is a private blockchain that uses the NEM software. The developers claim that it will reduce banking institutional costs by 90% while making banking more secure. Sakura Internet is partnered with Tech Bureau to offer 6 month free trials of Mijin for people to try. It was tested in December 2015 by Japan's largest trust bank, SBI Sumishin Net Bank, owned by Sumitomo Mitsui Trust Holdings, to add to their online banking services.
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