NEM (XEM)

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NEM (XEM)) is a cryptocurrency and a blockchain platform that introduced new features to the blockchain technology, such as its proof-of-importance (POI) algorithm, multisignature accounts and encrypted messaging. The NEM network launched on March 31, 2015.

Overview

Firmware (device) support Trezor One 1.6.2, Trezor Model T 2.0.7
Available in Trezor Wallet? No
Third-party wallets Nano Wallet

How to use NEM with Trezor

Even though NEM is not integrated in Trezor Wallet, it can be safely used with NanoWallet, with the seed and private keys fully protected by the Trezor device. For more infomartion and a manual describing the Trezor setup, see Nano Wallet.

See also: Supported cryptocurrencies

Technology and network governance

Written in Java, the NEM technology allows multiple ledgers to function simultaneously on one blockchain. NEM allows users to create so-called mosaics, representing any asset (e.g., currency). All transaction fees are paid in the NEM native token, XEM (supported by Trezor).

Parts of the NEM blockchain software have also been used to implement private blockchains for commercial businesses. Some of the features of its public blockchain technology are removed when used privately. The practical aspects of this approach remain yet to be demonstrated.

Harvesting and Proof of Importance

Instead of mining used in Bitcoin and many other cryptocurrencies, NEM uses a process referred to as harvesting. It uses Proof of Importance (instead of proof of work or proof of stake) and delegated harvesting to determine who harvests the next block.

Proof of Importance is a mechanism where a system calculates how people can harvest XEM. A user needs to have 10,000 XEM in his or her account to be eligible. The score is then counted based on the user's behavior in the network - number of held coins, the time that the coins are held for, number of transactions etc.

Delegated harvesting is a system where a user or connects his account to an existing remote node and uses the computing power of that node to complete blocks on his or her behalf.

Hacks

In January 2018, Coincheck, one of Japan’s biggest cryptocurrency exchanges, lost XEM tokens worth around 400 million USD at the time of the hack. The NEM developers refused to implement a hard fork to reverse those transactions - an approach taken by Ethereum resulting in a split into Ethereum and Ethereum Classic.