NEM — The Bridge Between Private and Public Blockchains

Can we truly say that NEM is one of the most desirable digital currencies in the crypto market? Well, let’s find out in this article.

The New Economy Movement or NEM is a blockchain project that evolved in 2015 as a fork-out version of another popular blockchain-based virtual currency known as NXT. The project is operated by a non-profit organization based in Singapore known as the NEM.io Foundation.

After the fork, NEM.io concluded that to move NEM forward, they needed to develop their own codebase to make the blockchain faster and more scalable. This is how the new NEM crypto platform emerged and it is now completely different from the original NXT.

NEM is focused on developing a blockchain that’s more technologically advanced and smarter. It’s working toward being not just another blockchain or another altcoin but a unique blockchain project that would provide enterprise-level clientele a better way to verify and move blockchain assets.

To achieve this, the company has positioned itself as the missing link between public and private blockchains simply by linking these two networks in ways that would increase usability.

As a result of its versatility and unique business strategy, NEM has continued to witness growing interests. By making use of this new era blockchain, users can now manage assets and data easily and more efficiently. When the NEM blockchain was built, it factored in the needs of large businesses into its structure. One of the reasons why NEM has earned the nickname “Smart Asset Blockchain” is its desire to meet the market’s requirements.

The Core Problems NEM is Solving

NEM is tackling several challenges that the cryptocurrency market is currently experiencing. Interoperability is one of the core missions of the NEM platform — to significantly increase interoperability between private blockchain networks. The private blockchain sector will be witnessing a boom in the coming years.

We are already seeing many companies investing billions into blockchain technology. However, one major challenge with these private blockchain projects is that they all function like an island. They are unable to communicate digital assets between each other. The NEM blockchain provides intercommunication in several ways.

With the NEM protocol, these private blockchains can transfer digital assets such as files, tokens or even contracts. Also, the NEM blockchain structure ensures that data can be sent from a privately held internal enterprise network, routed through a permissionless or public blockchain to the private network of another business.

Presently, a user cannot transfer funds directly from a PayPal account to a Venmo account, but with NEM’s private to public blockchain interfacing, such transfers can be possible as long as all the parties involved agree. The NEM platform can handle things such as documents, contracts, financial assets and several digitized assets.

It is possible for users to create their own Venmo or PayPal on the NEM network. For instance, there is NEMPay on the NEM platform. It is an open-source payment app that participants can easily customize to enable them to use their custom crypto tokens to make easy funds transfers.

NEM is also useful for retail store chain as it can be used to maintain and track a store’s loyalty rewards points program for customers.

Apart from interoperability between private blockchains, NEM will also disrupt the logistics sector’s current business systems. Of course, it’s no news that the existing supply chain management system is inefficient, outdated and bulky. The system that NEM created, which is fast, secure and open, will replace the old one. With this new platform, companies can now easily access, manage and share validated data through several access controls.

The NEM platform also has several social uses such as record keeping, access control, secure voting and registration. Technically, the project’s API is compatible and this feature makes it possible for any global application to be linked and utilized on the NEM platform.

New or existing mobile apps, databases, web apps or other programs can connect to the NEM blockchain and interact with it securely via the use of API Gateway server as well as API calls. The NEM blockchain also has its native utility token known as XEM. You can purchase XEM tokens on several major exchanges like KuCoin, Binance and Poloniex. The token performs several crucial roles within the ecosystem.

For instance, to gain voting and block approval rights, users vest XEM. The token is also a crypto with lightning-fast transaction times. But its primary goal remains to facilitate smart contracts. Unlike bitcoins, XEM isn’t being used by merchants for payments but it has still increased in value and has continued to maintain its position as one of the top 20 cryptos based on market cap and you can check this on CoinMarketCap.

Perhaps, NEM’s tagline is a perfect summary of what the new-age blockchain wants to achieve, “Smart Asset Blockchain, Built for Performance.” They are opening up a wide variety of possibilities for building improved and better blockchain systems. The project has touched directly on the major pain points of the existing blockchains.

What makes it an ideal candidate with greater adoptability potential in the future is its attempt to connect the private and public blockchains. There are many exciting blockchain projects in the crypto market and you can learn more about them by reading “The Digital World of Crypto Riches.” The book is a summary of the top crypto projects, their achievements, challenges and use cases, available on Amazon:
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