Ideas and Principles Behind NEM
NEM is a blockchain system of the second generation that started in 2015. NEM was created by a pseudonymous group of developers who teamed up on Bitcoin Talk aiming to build a community-oriented digital currency from square one, hence the name NEM – New Economy Movement. It is written in Java programming language and has got its cryptocurrency called XEM (read as Zem). One XEM can be divided into a million microXEMs or a thousand of milliXEMs.
Cryptocurrency Hacker Attack
On January, 26th 2018 more than half a billion USD worth of XEM was stolen overnight by hackers which led to a sharp decline in of its price. Japanese exchange Coincheck that was hacked promised to refund all affected users while the NEM development team tagged the stolen money and it is a big question if the hackers would ever be able to spend the stolen coins.
New Features Introduced by NEM
NEM introduced some innovative ideas to blockchain community. Namespaces are the system that gives the platform’s users opportunity to make a domain and subdomain-like names. NEM also uses the Eigentrust++ reputation system to monitor the health of the blockchain. Proof-of-importance algorithm (POI) allows NEM system to identify how many coins available to and how many transactions are performed by the user so the user’s overall support of the network could be determined. The block creating process is called harvesting in NEM and in order to harvest you’ll need a war chest of 10000 XEM and a high reputation in the system.