Cryptocurrency investors looking for opportunities beyond the big names of Bitcoin and Ethereum, might investigate altcoins. One with a promising potential, NEM, traded as XEM, offers a more secure platform and growing applications developed on its custom platform. This article provides a fundamental analysis potential investors can use as a starting pointing to guide their research and decision making. This analysis includes the following six elements:
- an overview of NEM,
- the problem it tries to solve that requires blockchain technology,
- NEM products,
- its scalabilty,
- the NEM community,
- NEM founders and board of directors.
Overview/Description of NEM
What problem does NEM try to solve?
NEM recognizes the advantages of platforms like Ethereum that offer a development architecture, wallet and cryptocurrency (ether). It moves beyond Ethereum in some ways though by building an easier to use, more friendly architecture.
While Ethereum uses smart contracts, NEM offers smart assets. “Smart Assets” let the developer customize their use of its blockchain system.
- You use a “Namespace” to mark your blockchain home.
- At your “Namespace” home, you give friendly names called “Mosaics” to user addresses.
- Each “Mosaic” comprises a building block of the “Smart Assets,” or applications, you create.
- “Smart Assets” go beyond applications. A “Mosaic” represents any creation: a coin, digital signature, DM, status update, user, etc.
- Each address, or “Mosaic,” can connect with one another using Multisig rules.
- NEM’s configurable “Transactions” let you update each asset.
On one hand, its platform’s design uses two very common computer languages, making it more accessible. On the other hand, accessibility can translate to hackability.
Another caveat exists in the nature of its configurable “Transactions.” Their configurability means they differ from the secure nature of standard blockchain architecture which uses static blocks. For example, using Ethereum platform for development, a block of a smart contract can only write once and never be altered. This boosts security and lends itself to user protection whether in relation to financial or healthcare transactions, for example. Some things you don’t want someone to edit or overwrite.
The NEM platform functions as its main product. It also features both its own hot and cold wallets. Its cryptocurrency, XEM, remains low cost, and enables platform transactions using the altcoin. It has gained worth though, rising 5,600 percent last year. It ranks in the top ten most valuable cryptocurrencies with a market cap of $1.8 billion. It remains imminently affordable with a current price of $0.20. Analysts at Profit Confidential expect the 2018 price to rise to the $2 or $3 range.
The company has its next generation product, Catapult, in beta test. It will provide platform improvements to scalability and security, in an effort to interest the banking industry. Another improvement in the works would further secure coins. NEM wants to develop its own coin exchange.
Its current Smart Asset platform lets individuals and businesses craft applications. The company refers to this as use cases and offers a living document section on its website devoted to these business cases. Two uses cases include a voting module and a trustless escrow solution.
Multiple nodes support the NEM blockchain. Users may choose to develop on its public, decentralized, self-supported blockchain or on their own servers for a private, permissioned blockchain approach. The NEM platform uses RESTful JSON calls to an API Gateway Server.
NEM began as a scalable solution to making blockchain applications easier to develop and implement. Its uses of simple, quick computer languages and basic platform/API calls enable it to process hundreds of transactions per second. Compare this with the security of Ethereum’s custom language, Solidity. Ethereum processes 15 transactions per second.
According to its founder and president, Lon Wong, the company goals include NEM applied to financial settlements, FOREX, payments, sovereign fiat money issuance, stock markets, trade finance.
NEM encourages community involvement by including links to its leadership’s social media. Wong and other C-level employees provide their LinkedIn accounts and, when applicable, their Facebook and Twitter accounts. The company’s board of directors and founders post about it often, along side personal updates. You’ll learn, for example, that NEM Vice President Jeff McDonald presents regularly on NEM, once lived in Jay, Oklahoma and worked as a Peace Corps volunteer.
Aside from beating the bushes, NEM forms international business partnerships. Its token, XEM, appeared on the Korean exchange CoinRoom, in November of last year. NEM and Metaps Plus, the fintech company that created CoinRoom partnered to improve payment processing.
NEM Board of Directors and Founders
Its board members represent diverse business backgrounds from engineering to education. One common thread though between the leadership exists – an investment in community development. Similar to McDonald’s Peace Corps stint, NEM president Wong established an autism center during his time in Malaysia. That diverges from his training as an electrical engineer. He earned his Bachelor’s from University of New South Wales, Australia. For more than 30 years Wong has embraced his entrepreneurial spirit, building businesses in the areas of engineering consultancy, ISPs/wireless broadband, networks and software development. Wong previously served as vice-president of Malaysia’s Association of Consulting Engineers. NEM vice president, McDonald, comes from an education background. He’s lived internationally for many years.
Incorporated in Singapore, the NEM.io Foundation works to “introduce, educate, and promote” using the NEM blockchain platform internationally. The foundation combines staff with backgrounds in academia, asset and property development, business processes, entrepreneurship, international management, IT and trading.
Its founding board members include Wong, McDonald, Ronel Li, secretary, and Ken Chan, treasurer. Other founding members include Erik Van Himbergen, Kailin O’Donnell, Leon Yeoh, and the succintly named QM and Ewan. Its council members include: Takao Asayama; Clayton M. Bittle; Albert Castellana; Stephen Chia, Regional Head, Southeast Asia; Niko Maenpaa; Nelson Valero; Kristof Van de Reck, Regional Head, Europe.
Its international business team heads include Jason Lee, Australasia director of partnership & strategic alliances and Samy Mendiburo, marketing & events director.
Looking strictly at it as a coin purchase, XEM, probably will rise in 2018. It grew last year and continued development of its parent platform could further it as a business-to-business currency. It uses an ingenious method of increasing fees for those who attempt to game, aka spam or hack, the currency and its transaction blocks. That helps to keep transaction levels honest and stabilize currency value by encouraging only legal transactions. Using POI rather than proof of work (POW) or proof of stake (POS) discourages mining while encouraging B2B operations over staking (long-term investment). This, too, helps stabilize the currency while encouraging viability and continued use. Look for XEN to remain in the top ten and rise in rank.