XEM is the native cryptocurrency that drives NEM’s public, decentralized blockchain. NEM’s XEM is used to pay for transactions to incentivize its network of public nodes that process and record transactions for businesses and users.
NEM was created in 2015 and resulted from a Bitcoin Talk (NXT) fork, with Bitcoin Talk forum user UtopianFuture inspiring the fork.
There are a total 8,999,999,999 XEM coins, with each harvester wallet required to have at least 10,000 vested XEM coins. NEM harvesters are equivalent to miners, receiving transaction fees upon the creation of a new block.
NEM is a peer-to-peer blockchain technology, considered to be the first Smart Asset blockchain. NEM delivers a platform for the management of any kind of asset, including but not limited to currencies, supply chains, notarizations, titles, and deeds.
NEM’s smart asset system features including:
Addresses: Container assets on the blockchain that can represent a single object that must be unique and updatable. An address can be as simple as a user’s account full of coins, like most blockchains, or it could be a package to be shipped or a deed to a house.
Mosaics: Custom assets on the NEM blockchain, which once sent to the NEM network results in a special fee payable in addition to the standard transaction fees. A mosaic could be as simple as a token or more specialized assets such as reward points, shares of stock, signatures, status flags, etc. Mosaics are held within Addresses.
Namespaces: A domain naming system that consists of higher level domains and subdomains, allowing for the creation of multiple subdomains that form Mosaics.
Transactions: This facilitates the transfer of Mosaics between Addresses, transfer or configure ownership of Addresses, send messages, etc. Each transaction is time stamped.
The NEM blockchain uses a Proof-of-Importance (“PoI”) algorithm, with nodes responsible for the verification of transactions as well as database maintenance, synchronization with other nodes, while maintaining trustworthiness and stability.
With the use of its Eigentrust ++ algorithm, nodes are able to intelligently judge the reputation of other nodes and reject bad nodes.
Some distinct differences and characteristics of NEM’s XEM include:
There are no physical XEM coins, only virtual.
Unlike fiat currencies, there are a finite number of XEM coins.
There is the ability to delegate harvesting of XEM coins.
Based on a Proof-of-Importance algorithm, giving the right to harvest to those that have a vested interest in NEM.
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