1 Level
12 Review
9 Karma
Review on NEM by DAT PHAM DUC
NEM is primarily a financial blockchain solution which can be used for payment…
NEM is primarily a financial blockchain solution which can be used for payment, clearing and settlement in a fully controlled and private environment. As such, it meets the requirements of most regulatory frameworks. NEM also has more creative applications, such as Apostille, a solution for notarizing documents, updating them and changing their ownership. These diverse applications are made possible thanks to NEM’s asset agnostic nature. This means that the platform can be used to settle any asset via the blockchain. NEM also exists as a private chain called Mijin, which is being tested for blockchain capabilities by over 140 institutions in Japan, including Hitachi. NEM’s wide-reaching potential and “mainstream” industry traction make its XEM token an attractive investment, but is everything as smooth as it may appear at first glance? Tokenguide explores what you should keep in mind when you consider investing in NEM.
Pros
- This means that the knots are measured on the quality of the work provided and not on the quantity. This is the technique that protects the network. But it also has the advantage of preventing users from downloading the entire NEM Blockchain. As a result, even thin clients, that is, using mobile phones or low-power computers, can use the NEM system. In the concept POI, the importance of each user is determined by the number of pieces that it owns, as well as by the number of transactions made on its portfolio.
Cons
- The NEM blockchain has a number of technical innovations which set it apart from other financial blockchains. Instead of using the typical “mining” model, NEM uses something called “harvesting” - the process of generating blocks and earning the transaction fees in that block as a reward for the contributed work. Participants are also incentivised to “harvest” more, since the reward for “harvesting” is issued at random: each block contains a number of transactions with unknown fees, thus more harvesting more blocks will allow you to level out pay-out. However, not every blockchain user can take part in “harvesting,” they need to go through something called Proof-of-Importance (POI). The higher a participant’s importance, the higher their chance of successfully “harvesting” a transaction.
