NEM (XEM)

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Cryptocurrency Transactions

NEM is used for fast and secure cryptocurrency transactions, providing an efficient alternative to traditional banking and payment systems.

Smart Asset System

NEM’s Smart Asset System allows users to create custom digital assets called mosaics. These mosaics can represent anything from real-world assets like real estate or stocks to digital tokens, stablecoins, voting rights, or internal tokens.

Supply Chain Management

NEM’s blockchain technology helps create open, secure, and efficient supply chain management systems. Companies can manage, access, and share validated data with various access controls, making logistics more streamlined.

Enterprise Blockchain Solutions

NEM supports both public and private blockchains, enabling seamless connection and transfer of digital assets between them. This makes it useful for businesses integrating blockchain into their existing networks.

Network Governance and Rewards

NEM uses a unique Proof-of-Importance (POI) consensus mechanism that rewards users based on their activity and vested interest in the network. Users can participate in block generation (called harvesting) and earn rewards, promoting active network participation.

ICO Launch Platform

NEM’s blockchain can be used to launch Initial Coin Offerings (ICOs), allowing businesses to customize their blockchain use for fundraising and token creation.

Data and Asset Management

NEM is popular for managing financial assets, contracts, files, and digital assets efficiently and securely. It is also used for record keeping, notarization, registration, and securing voting activities.

Interoperability and Integration

NEM acts as a bridge between private blockchains and the public crypto economy, enabling cross-functionality and information sharing across different blockchain networks.

Advantages of NEM

• Uses a unique Proof-of-Importance (PoI) consensus mechanism that rewards users based on their activity and contribution, not just the amount of coins held.
• Supports fast and secure cryptocurrency transactions with low fees (around 0.1%).
• Allows creation of customizable digital assets called mosaics, useful for various applications beyond simple currency.
• Built from scratch in Java, not a fork, which offers flexibility and innovation.
• Integrates a reputation system (Eigentrust++) to maintain network quality and balance load.
• Has a strong community, especially in Japan, and ongoing development efforts including a private blockchain project.
• Offers multiple wallet options with user control and integrated exchange features for ease of use.
• Can be used for diverse applications like supply chain management, legal records, and smart contracts.

Disadvantages of NEM

• Lower recognition and adoption compared to major blockchains like Bitcoin and Ethereum, limiting network effects and partnerships.
• Faced challenges such as mismanagement and a decline in web presence.
• The launch of the new Symbol blockchain project has created uncertainty about NEM’s future role.
• Not widely accepted as a payment method by merchants.
• Experienced a major hack in 2018 affecting investor confidence.
• Some features are not fully utilized to their potential.
• Transaction traceability might be a concern for users seeking privacy.

Overall, NEM offers innovative technology and flexibility but faces challenges in adoption and market presence.

Founders and Key People

NEM was founded by a team led by Lon Wong, who served as the first president of the NEM.io Foundation. The project was initiated in 2014 by a Bitcoin Talk forum user known as "UtopianFuture," who wanted to create an improved cryptocurrency based on NXT's codebase but eventually built NEM from scratch. The NEM Foundation was later established in Singapore to promote and develop the NEM blockchain technology globally.

Additional Contributors

Jeff McDonald is a notable figure associated with NEM, serving as CEO and playing a key role in evolving the NEM brand and community.

Clarifications

Makato Takemiya was mistakenly claimed by some sources to be a founder or lead of NEM, but official statements clarify that he was not an inventor, founder, or developer of NEM.

Investors and Supporters

NEM is supported by a community of cryptocurrency enthusiasts, developers, and a non-profit organization called the NEM.io Foundation, based in Singapore. The Foundation promotes the development of NEM blockchain technology and its ecosystem, involving governments, academia, and industry participants.

Community and Market Participants

Many investors and network participants hold NEM tokens (XEM) and contribute to the network through its unique proof-of-importance (POI) algorithm, which rewards users based on their activity and investment in the system rather than just wealth or mining power.

Institutional and Strategic Interest

While specific large institutional investors are not publicly detailed, NEM has attracted interest from enterprises integrating blockchain solutions, and its ecosystem includes partnerships and listings on various exchanges, which help expand its reach and utility.

Summary

• NEM.io Foundation (non-profit organization)
• Cryptocurrency enthusiasts and developers globally
• Network participants rewarded by POI algorithm
• Enterprises and strategic partners integrating blockchain solutions
• Investors trading on multiple crypto exchanges

Halal Status of NEM

Yes, NEM is considered halal. It is recognized by several Islamic finance experts and Shariah advisory boards as compliant with Islamic principles. This is because NEM employs a proof-of-importance consensus mechanism rather than interest-based or speculative models, and it aims to develop a better blockchain without involving prohibited activities like riba (interest). Various Shariah screening assessments have confirmed its halal status.