How does NEM work?

NEM (New Economy Movement) is a blockchain-based platform that provides a wide range of services, including payments, asset management, and smart contracts.

It is built on a unique consensus algorithm called Proof-of-Importance (POI), which rewards users for their contributions to the network. At its core, NEM is a distributed ledger technology (DLT) that enables users to securely store and transfer data and assets without the need for a third party. The platform is powered by its native cryptocurrency, XEM, which can be used to pay for transactions and services on the network.

NEM’s consensus algorithm works by assigning each user an importance score based on their activity on the network. This score determines how much influence they have over the network’s operations and how much XEM they can earn as rewards for their contributions. The higher the importance score, the more XEM rewards they will receive.

The NEM blockchain also supports smart contracts, which are self-executing agreements between two or more parties that are written in code and stored on the blockchain. These contracts are secured by cryptography and can be used to automate various processes such as payments or asset transfers. In addition to its core features, NEM also offers an array of other services such as encrypted messaging, encrypted file storage, multi-signature accounts, and decentralized applications (dApps).

All of these features make NEM one of the most comprehensive blockchain platforms available today.