Understanding XEM. A guide to the NEM blockchain and its cryptocurrency

XEM, the native cryptocurrency of NEM, serves multiple purposes within the ecosystem. It powers transactions, incentivizes network security, and enables the creation of custom blockchain applications using NEM’s Smart Asset system.

NEM’s unique mission

The goal of NEM is to simplify blockchain adoption for enterprises by offering plug-and-play solutions. Through tools like Smart Assets, NEM allows users to create custom applications without needing extensive technical expertise. The platform is designed to balance ease of use with powerful features, making it suitable for businesses of all sizes.

XEM’s role: As the utility token of the ecosystem, XEM facilitates:

• Transaction fees within the network.

• Rewards for node operators through a harvesting process.

• Interaction with the Smart Asset system.

Benefits

• Scalability and speed
  NEM can process hundreds of transactions per second, significantly faster than older blockchains like Bitcoin. This scalability positions it as a strong contender for large-scale enterprise applications.
  
  

• Low transaction costs
  Transaction fees on the NEM blockchain are minimal, with XEM fees averaging less than $0.01 per transaction.
  
  

• Security and privacy
  NEM leverages multi-signature accounts, cryptographic hashing, and an encrypted messaging system to ensure robust security for users and enterprises.
  
  

• Decentralized governance
  The PoI mechanism encourages a balanced distribution of influence, promoting decentralization and preventing monopolization.

Real-world applications of NEM

NEM’s flexibility has made it a popular choice for a variety of industries. Its focus on customization allows businesses to tailor blockchain applications to their specific needs.

• Supply chain management. With its Smart Asset system, NEM enables companies to track goods and verify authenticity throughout the supply chain.

• Financial services. Banks and fintech companies can use NEM to issue digital assets, streamline payments, and reduce transaction costs.

• Identity verification. NEM supports secure identity management systems, allowing users to verify credentials without sharing sensitive personal information.

Integration with Symbol

In 2021, NEM launched Symbol, a next-generation blockchain built to enhance the original NEM platform. Symbol integrates seamlessly with NEM while introducing additional features like hybrid chain capabilities, advanced tokenization, and support for interoperability with other blockchain networks.

Setting up a wallet

To begin using XEM, you’ll need a compatible wallet. The most popular option is the NEM Wallet, which is available for both desktop and mobile devices. It offers features such as:

• Secure storage for XEM and other assets.

• Access to the Smart Asset system.

• Integration with Symbol for cross-platform functionality.

Acquiring and using XEM

You can acquire XEM by purchasing it on major cryptocurrency exchanges like Binance, Coinbase, or Kraken. Once you’ve obtained XEM, you can:

1. Use it to pay transaction fees within the NEM network.

2. Participate in harvesting by running a node or delegating your XEM holdings.

3. Engage with dApps and other blockchain-based solutions powered by NEM.

Harvesting vs. Mining

NEM’s “harvesting” process replaces traditional mining. Instead of using energy-intensive computations, harvesting involves running a node and participating in transaction validation. Users are rewarded in XEM based on their PoI score, encouraging active participation in the network.

For developers, businesses, and investors, XEM represents a unique opportunity to engage with a network that balances innovation with real-world usability. As the ecosystem continues to expand through Symbol integration and enterprise partnerships, XEM’s utility and relevance are poised to grow, making it a noteworthy asset in the blockchain space.