Proof of Importance and Harvesting

While Bitcoin and many other coins have chosen the Proof of Work or Proof of Stake consensus mechanism as their algorithm, NEM’s Blockchain uses a unique algorithm known as Proof-of-Importance.

Proof of Importance stimulates active participation in the network by assigning each node an importance score that determines how often that node can harvest XEM tokens.

This creates a decentralized Bitcoin trader network of nodes

An advantage of the Proof of Importance algorithm is that it is not very computationally intensive and full nodes can be executed on almost any Bitcoin trader computer, thus avoiding centralization of mining by powerful computers or scam.

Networks like Bitcoin separate the operation of mining and nodes, but with NEM both run on the same software. This gives users an incentive to operate a full node as it is needed for the PoI system, and over time the network becomes increasingly decentralized as more and more people join together to take advantage of the XEM coins.

The PoI system is certainly unique among consensus mechanisms and appears to be a fair and promising alternative to the traditional PoW and PoS consensus mechanisms.

Other features of NEM according to onlinebetrug

NEM is also unique in using a custom “self trust algorithm” to create a reputation system for nodes says onlinebetrug. In such a system, each node tracks the information it receives from all other nodes (transactions, new blocks, etc.) and verifies the information independently. More about it on www.onlinebetrug/en

If the information provided by other nodes is valid, the providing node receives an increase in reputation, but if the information is invalid, the reputation decreases. Reputations are constantly shared across the network and updated in each participating node. Such a system provides an excellent mechanism for removing faulty nodes and balancing the network.

More NEM features:

Integrated spam filters that prevent garbage transactions from flooding the network.
A P2P time synchronization system that allows the network to maintain accurate time stamps without relying on external servers to check time
Encrypted messaging on the blockchain without having to hack transaction fields to transfer data.
Multisignature Addresses

Several major exchanges are already offering to buy XEM. The exchanges include Binance, Bittrex, HitBTC, Huobi and Poloniex and other small exchanges.

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