Eco-friendly blockchain technology
Information + Resources
The New Economy Movement (NEM), launched in 2015, is a Java and C++ blockchain platform that uses a distributed Proof-of-Importance consensus algorithm instead of Proof-of-Work or Proof-of-Stake to verify transactions with the XEM token. This moves the basis of the value away from the numbers and hashing power and more into the ideas behind the numbers.
The algorithm is designed to promote fluid token distribution by giving nodes (servers that verify transactions and the data representing your money) a reputation system so that “harvesters” are more invested in the system, while those running the nodes get paid for their work. What’s more, NEM’s mining algorithm is about 10x more energy efficient than Bitcoin’s as it does not need to process full blocks. This is an important but underappreciated consideration, as all those servers need a lot of power to run hashing algorithms all day. I’m not sure, however, how much this will matter as servers themselves become more power efficient, especially if quantum computing goes mainstream.
NEM’s goal is to run its own cryptocurrency ecosystem that is trustless, peer-to-peer, and very easy to adopt. This will help to decentralize economies as a whole with their blockchain applications. They are building in many applications, describing the platform as taking some of the best parts of Counterparty, Ethereum, and Bitcoin, and then improving on the model. Their codebase is entirely original, however. NEM hopes to be part of a green paradigm shift in how equity markets function by completely digitizing the process onto their Mijin blockchain, with all the security that blockchains bring, saving the industry billions per year in upkeep – potentially 90% of costs. NEM will also have a collective fund that can be delegated by users to fund small businesses and blockchain projects
The platform wants to kickstart developers on their NEM network with a community fund, using a 300 million XEM allocation. This could be a great way to attract developers and grow the services offered on the platform, especially since the token is valuable and growing. Time will tell if the platform lives up to its name, however.
The company has undergone massive growth since its launch. It is one of the top cryptocurrencies by market capital, sitting at about 1.75 billion dollars as of June 20, 2017. They have a growing development team and great representation, expect to hear a lot about them while they shoulder themselves in between the other big names in the industry right now. The whole cryptocurrency sphere is very new, with ideas and competitors emerging from every corner daily.
Future: Getting Connected
// Written June 20, ’17. Price at the time: $0.195 / XEM
// Edited July 1, ’17. Price at the time: $0.151 / XEM