NEM is a blockchain with a unique consensus, the Proof of Importance, which rewards the users for their contribution to the NEM community. The success of this consensus became very clear in 2016 when NEM shot up in its market capital. Since then, NEM has taken a firm position in the top 10 major cryptocurrencies.
NEM’s success has not gone unnoticed! In early 2016, NEM started collaboration with the Tech Bureau Mijin. Since 2016 several Japanese banks have successfully experimented with Mijin, who works on the NEM blockchain. Mijin was able to perform 1500 transactions per second, with 2.5 million virtual bank accounts.
Since then, NEM doesn’t look like stopping, and that is reflected in its value. As a result, more and more traders have become interested in investing in NEM.
It is possible to buy NEM coin (= XEM) directly via Litebit. You can also choose to buy bitcoins first and then exchange them for XEM. However, this is outside the scope of this step-by-step plan.
STEP 1: INSTALL THE NEM WALLET
The first step is to go to the NEM website and install the wallet. We need a wallet deposit address to deposit the purchased NEM.
Once you have downloaded the correct wallet for your operating system, you must unpack the zip document. Once you have done that, go to the folder where you unpacked it and press “Nano Wallet”.
STEP 2: REGISTER YOUR NANO WALLET
Once you have opened the Nano Wallet, you can create a new wallet.
Press “sign up” at the top right and select Simple wallet. After registration, you will receive a wallet file and a private key.
As you are explained, it is important to keep your wallet file and private key (preferably offline).
After you have done this you can log into your wallet with your chosen password (not private key). Then click on the Send tab at the top left and on receive.
Copy the address in the “Pay to:” field. This is a series of numbers and numbers.
STEP 3: BUY XEM
Go to Litebit.eu and look at the list in the options at the top left of XEM. Then you can enter how much XEM (= NEM coin) you want to buy.
Important : You then have to enter a receiving address (wallet). This address is the receive code that we copied from the wallet from the “Pay to:” field.
It is important that you stick it here, to make sure that the NEM coin arrives at the right place. Perform the payment steps.
Your XEM will appear in your wallet after 1 or 2 hours! It may take longer if your account needs to be confirmed via Litebit, this process usually takes half an hour / hour.
What is NEM
NEM, or the “New Economic Movement”, is a Blockchain platform that was launched in 2015. NEM also has its own cryptocurrency XEM, and its source code is entirely written in the programming language JAVA .
According to its founders, NEM is focused on addressing the inequality in wealth that currently plays within and outside the blockchain world. This is where NEM distinguishes itself from other cryptocurrencies, partly with its unique consensus “Proof of Importance”; NEM wants to help the “old economy” evolve towards the “new economy”.
NEM is a movement that aims to empower people by creating a new economy based on the principles of decentralization, financial freedom, and equality of opportunity. “- NEM Technical Reference
PROOF OF IMPORTANCE
Proof of Importance, Proof of Work and Proof of Stake are all consensus algorithms. These algorithms were created with the task of maintaining the order of a Blockchain.
This helps maintain the integrity of the Blockchain and helps prevent fraudulent practices.
NEM’s own revolutionary consensus algorithm, namely the Proof of Importance. To make it clearer what makes this algorithm so unique (and therefore NEM itself.), We will briefly look at the other two options.
Proof of Work is the algorithm that Bitcoin and Ethereum use. This is one of the first algorithms implemented with a Blockchain (= with Bitcoin). To earn these coins you have to minus them. The mining process requires computer power from your computer, the greater the power you provide, the more you will earn.
Why was it made so that mining / making a block cost so much energy and power? Because the action itself requires a huge amount of power, it becomes more difficult / impossible to attack the Blockchain.
The problem with PoW (= Proof Of Work) is that the mines themselves yield nothing, and demand a lot of power. In addition, it became more and more difficult to minimize this form of cryptos because you compete with large companies. Who have many times the computer power of an average household.
This created another consensus PoS (= Proof of Stake).
Proof of Stake is an algorithm that FootyCash and PeerCoin use for example. PoS came as alternative to the enormous capacity of intensive mining that was the case at PoW. Instead of the conventional mining of PoW, a user must only show proof of his ownership of the PoW or “stake”. The more and the older the coins are, the greater the chance of recruiting the next block. This will save a huge amount of computer power.
However, the problem here is that, as with PoW, the rich are getting richer. If you start with more coins, you have more chance of future rewards, which means you have more coins.
This is where NEM’s POI (= Proof of Importance) comes into play with a solution. POI looks and works almost identical to a PoS; only it has more variables that are counted.
The POI system not only rewards people with a large balance, but also takes into account how often they perform transactions among themselves, and how the transactions are experienced.
This means that people who actively help the economy, and therefore NEM, will experience a greater reward. Each user gets a trust value, the higher this is, the more chance you have of a reward on the coming block.
This results in a fair distribution of “Wealth”, and equal opportunities for everyone.
This reward process is done by harvesting (= NEM’s form of mining). To harvests you need a vested balance of at least 10,000 XEM.
WHAT IS VESTING
If a user enters XEM for the first time in his account, none of them will be established (= vested). After exactly 24 (= 1440 blocks) hours, 10% of the entire balance of XEM will be confirmed. Subsequently, 10% of the unconfirmed balance will be confirmed for 24 hours. This process will continue as long as the XEM is left in your wallet.
What happens when I make a transaction?
In this case, the wallet will automatically distribute payment for you that the ratio of confirmed / unconfirmed XEM remains the same after the payment.
Once you have enough confirmed XEM, you can start harvesting.
What is Harvesting
Harvesting is the process of NEM that creates new blocks in the chain and gives the transaction costs of that block as a reward. The POI algorithm then determines who gets this harvesting reward.
You can compare harvesting loosely with the mining of, for example, Bitcoin . The difference is that with mining, new coins are mined, while on harvesting no new coins, but transaction costs are paid out.
In order to harvest, the account requires a balance of at least 10,000 confirmed XEM coins.
If you do not explicitly activate “delegated harvesting” within the NEM client, the system uses the standard locale method.
Local harvesting only works when your computer is on (similar to a strike). The plus point is that it is very easy to set up and requires no additional steps.
A delegated harvesting method is done through a separate “NIS”. This means that your computer does not have to be on to harvests, because it is done on a special server.
This method takes some technical steps that your NEM website can follow. You also have to pay 6 XEM once to activate this method.
You can download the NEM wallet / client from the official NEM website . Available for every operating system.