NEM, why is it so special?
All people are talking about ethereum and Bitcoin, while few have their eyes on NEM, so here I am going to briefly introduce why NEM is so special and what is its difference from others
proof of importance - the algo used in NEM to time stamp transactions. Volume and trust become factors to encourage users to actively carry out transactions other than holding in traditional proof of stake system
P2P Time sync - network does not have to rely on serves outside the network
Spam guard
Mutisig 2.0
Light wallet
I don't understand them all, so if there is some specialist here, please help me to explain the above terms
It's also market stable.
I'm by no means an expert but from what I understand, there proof of importance concept is to prevent double spends which has been an issue with quite a few altcoins.
The immediate issue I have with NEM is the whole idea of vested balance. In such a volatile market old money is dangerous. There are other altcoins such as Siacoin and BitShares with much more impressive tech.
Vesting is almost fully complete after two weeks and you only need 10,000 XEM to harvest. The vesting period is another security mechanism that makes Sybil attacks more difficult.
The key feature of NEM is Proof-of-Importance and how this algorithm incentivizes desired behaviors on the network. Here's how I think about incentives for each of the common blockchain algorithms:
Proof-of-Work : Those with the most computing power to solve complex math problems win the right to harvest blocks and earn the corresponding reward.
Proof-of-Stake : Those with the most accumulated currency have the highest odds of getting to harvest a block. This can incentivize hoarding and gives an instant advantage to someone with a lot of capital coming into the system. Steem addresses the latter issue to some degree through the use of witnesses who are elected by users (votes weighted by how much Steem Power you have).
Proof-of-Importance : The right to harvest is awarded based on a combination of your stake (amount of currency) and how many transactions you have participated in. This reduces the incentive to hoard and allows those with fewer resources to more easily get a chance to harvest.
P.S. This is my first Steem post, really enjoying the platform so far!
Thank you for your detailed explanation, you made it so clearly
Glad I could help!