Why NEM is set to have the greatest comeback in 2018

laura elley

Contributor
After bitcoin, crypto investors are turning for NEM and even though all the “scandal” about the loss of US$ 400 million NEM’S currency on coincheck, one of Japan’s biggest digital exchanges, its finally close to seeing a revival of its numbers in the currency market which means that we may see a consistent comeback on the next days.
For more information visit at :- https://cryptoflash.io/posts/430183
 

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Old Man Crypto

Expert chainblocker
Still stuck under 60 cents now. Just a third of its price in January. Might take awhile for this one to come back I think.
 

Cryptokitty

Contributor
Many of the top blockchains, such as Litecoin and Bitcoin Cash are either hard forks or software branches of the original Bitcoin code and blockchain. However, that is not the case with NEM. It’s built with 100% original code. NEM has done away with Proof-of-Work and Proof-of-Stake – instead, NEM is the first cryptocurrency to use the “Proof-of-Importance” algorithm. Find out more here What is Proof of Importance? Everything you need to know
 

The CC Forums

Admin
Staff member
From the link

Proof of Importance
The New Economy Movement (NEM) has attracted a lot of attention recently. NEM is a movement that aims to empower individuals by creating a new economy based on the principles of decentralization, financial freedom, and equality of opportunity. One of the aspects about NEM that particularly interested us is known as ‘Proof of Importance’. Please see infographic below.


What is Proof of Importance?


Proof of Importance is the underlying technology behind NEM which determines who gets to verify transactions. This consensus mechanism is similar to Proof of Stake (PoS) in that it requires a certain amount of cryptocurrency (10,000 XEM in NEMs case) to verify transactions. It differs to PoS in that it solves the issue of a person having more stake being more likely to verify transactions, thus receiving more rewards. In other words, PoS helps the rich get richer, and PoI aims to alleviate that.

hought of as a reputation score (kind of like Karma on Reddit). A higher score means the network trusts you more to verify transactions.

In PoI, your chance of verifying transactions isn’t entirely dependent on how much you have to stake. Instead, it’s based on the number and quality of transactions you’ve previously done.

What is a quality transaction?
Well, simply sending yourself a bunch of XEM between addresses isn’t going to do it. You must have sent at least 1000 XEM to addresses holding at least 10,000 XEM staked within the last 30 days.

Benefits


One risk of Proof of Stake is that people simply hoard as many coins as possible and reap the rewards from block creation. This concentrates wealth while discouraging transactions. These transactions are what keeps the network running. PoIs importance score means that hoarding results in a lower score. Spreading XEM around increases the score. Therefore, being an active participant pays better than hoarding.

What keeps it secure?
You may think that it’s pretty easy to hold a few addresses, pass some XEM between them and shoot up your own importance score, however, the algorithm attempts to prevent this. One way in which it does so is by actually lowering the importance score for accounts that transfer out, then receive XEM. Also, making everyday purchases or sending XEM to an exchange won’t affect your importance score.
 
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