Date Launched: March 31, 2015
Mineable: PoI (Proof-of-Importance)
Founders: BitcoinTalk ID: UtopianFuture
NEM (New Economy Movement) is a distributed ledger system that allows for transactions of what are called smart assets. These smart assets could be used to represent almost anything on the blockchain, including files, signatures or even songs.
NEM is the first hybrid public/private blockchain solution built from scratch, and first to use the Proof-of-Importance algorithm. NEM allows for multisignature transactions, enables community driven projects.
NEM uses Proof-of-Importance, which gives more weight to users who are more active on the NEM network. A NEM user’s importance is determined by how many coins they have and the number of transactions made to and from their wallet. PoI is different from other initiatives that do not take into consideration a user’s overall support of the network. In Proof-of-Stake systems, users gain more mining power by increasing the number of coins they hold. But in NEM, transaction volume and trust become factors. This was designed to encourage users of NEM to not simply hold XEM but instead actively carry out transactions.
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.
In addition to making payments, NEM’s Smart Asset System also allows users to create their own tokens with no programming needed. Users simply need to open the client, define the name, number of coins, divisibility, etc. Users can make transactions free with the new coin, or set transaction fees in any amount.
NEM Smart Assets are built using four closely connected parts
Address “Container” Smart Assets
NEM Addresses are container assets on the blockchain that can represent a single object that must be unique and updatable. Addresses contain Mosaics (defined below). An Address could be as simple as a user’s account full of coins, like most blockchains. But it could also represent things like: a package to be shipped, a deed to a house, or a document to be notarized.
Address assets become truly smart when configured with special rules – directly on the NEM blockchain – that define how they relate and control each other, as well as how their contents can be can be updated and transferred. One crucial rule type is multi-signatory control (often called “Multisig”) that allows ownership of Address assets to be shared in a variety of ways between multiple parties, all on the blockchain.
Mosaic “Fixed” Smart Assets
Mosaics are part of what make the Smart Asset System unique and flexible. Mosaics are fixed assets on the NEM blockchain that can represent a set of multiple identical things that do not change. A Mosaic could be as simple as a token, but it could also represent a set of more specialized assets like: reward points, shares of stock, signatures, status flags, votes or even other currencies. Each Mosaic is defined by a variety of attributes such as name, description, quantity, divisibility, transferability and more.
Mosaics are held within Addresses (defined above), and can be passed between them using the NEM API to represent a surprising variety of transactions such as: registering a signature, updating the status of an item, casting a vote, or simply passing coins or points between accounts.
Namespaces let you create a unique place for your business and your assets on the NEM blockchain. A Namespace starts with a unique name that you choose, similar to an internet domain name. You then have the ability to define your own subdomains, as well as names for your assets. This makes your assets unique, easy to use, and trustable.
Transactions are how your Smart Assets are put into action. Transactions let you transfer Mosaics between Addresses, transfer or configure ownership of Addresses (including use of Multisig rules), send messages and more. NEMs blockchain includes a built-in consensus-driven time keeping facility, so transactions are automatically and accurately time stamped.
A totally unique implementation of blockchain technology
NEM is built from scratch as a powerful and streamlined platform for application developers of all kinds, not just as a digital currency. Using NEM in your application is as simple as making RESTful JSON API calls allowing you to configure your own “Smart Assets” and make use of NEM’s powerful blockchain platform as your fast, secure and scalable solution.
Configured for your use, NEM is suitable for an amazing variety of solution classes, such as direct public transactions via streamlined smartphone app, efficient cloud services that connect client or web applications, or a high-performance permissioned enterprise back-end for business-critical record keeping.
Smart Asset System
NEM is built around a powerful system for customizing your use of the blockchain. We call it the “Smart Asset System”, and it gives you the power to use NEM as if it were a custom blockchain built for your application and your assets. Rather than force you to write your own “smart contract” code from scratch or use off-blockchain methods of defining custom assets for your business, NEM gives you direct API access to a specialized set of tested and secure on-blockchain features.