Nem is a peer-to-peer electronic money system and blockchain launched in 2015 that introduced new features to the blockchain technology with a wide distribution model than existing cryptocurrencies. Some of the new features NEM introduces is the proof-of-importance algorithm, multi-signature accounts, encrypted messages and an Eigentrust ++ reputable system. This blockchain software is incorporated in a commercial blockchain known as Mijin. This blockchain has been tested by both japanesse and international financial institutions and private companies.
NEM underwent open alpha testing in 2014 and a lengthy and comprehensive beta testing the same year. The NEM blockchain was designed for mainstream application in mind whereby NEM users develop solution based on the most extensive use of the technology independently. The chain also support scalability which is essential to the success of any cryptocurrency, and also an abstract layer of well suited API’s for easy integration to harness the power of blockchain power.
NEM has been developing an extension of its public chain into a private chain. Catapult is as well the second iteration of the NEM blockchain technology. It was launched in March 2015 but has since been released since the first quarter of 2017. Catapult together with its predecessor, Mijin, are permissible blockchains. The difference being that Mijin is an extension of the NEM public blockchain while Catapult is the reverse.
Catapult is especially designed to include more functions and features that have been developed to support the critical functions and features of the financial features as required in the blockchain technology. Catapult like most blockchains is driven by a consensus mechanism, consisting of a network of nodes integrated together into a peer-to-peer configuration. Each transaction is broadcasted out and each node will record the transaction and verify them at the same time. These transactions are grouped together in periodical intervals to undergo the process of linking blocks to previous blocks. The permission ledger follows a controlled proof-of-stake algorithm while public chain is based on the proof-of-importance algorithm.
NEM has recognized the role played by Smart Contracts into the core banking systems. Smart Contracts are a complicated web of work thus they can’t be instantaneously changed. The approach taken by NEM is to make Smart Contracts, whether centralized or decentralized, to be an external component of the cryptocurrency system. Output from these Smart Contracts is reflected on a ledger through secure transaction processes. Catapult has a powerful abstraction layer which makes it agnostic to existing banking standards and thereby avoiding disruption of currently installed solutions but to instead dovetail into already existing systems.
NEM has created a platform whereby financial institutions can now migrate their systems through the use of outputs to integrate with blockchain via the abstraction layer, into solutions that best suit their operations.
What is NEM blockchain? Pros and cons: