Review on NEM by Tam Pham Duy

NEM is a decentralized blockchain-based peer-to-peer network on which third parties can build their own applications, including cryptocurrencies and crowdfunding tokens. NEM offers both public and private (Mijin) blockchains. One of the biggest differences between NEM and other blockchains is its use of proof-of-importance consensus, as opposed to proof-of-work or proof-of-stake. proof-of-importance is a consensus algorithm that determines who gets to verify transactions on the NEM network based on their comparative “importance.” Like proof-of-stake (PoS), PoI requires network members to invest a certain amount of cryptocurrency in a network in order to be able to verify transactions (10,000 $XEM). But unlike proof-of-stake, proof-of-importance assigns an importance score to everyone who meets this threshold that takes into account factors beyond account balance, such as size of transactions completed, number of transactions completed, and quality of transactions completed. In other words, even if you're not NEM's richest holder, you can still have a high-ranked account if your account is consistently processing fast transactions. Like proof-of-stake, proof-of-importance is also an energy saved when compared to wasteful proof-of-work consensus. The NEM network uses 100 times less power than Bitcoin to complete a transaction.