Nem (XEM) is harvested not mined

This article was published on: 11/22/17 1:58 PM

Written by | bitcoin, cryptocurrency, news

Nem (XEM) is harvested not mined

To describe NEM cryptocurrency we have to start from the information which distinguishes it from the other cryptocurrencies – blocks of XEM are harvested.

It means that the award for generating the blocks is a profit from transactions’ fees. What’s more, this cryptocurrency is not based on Bitcoin’s code – the program was written in Java and JavaScript. Besides, it is a peer-to-peer cryptocurrency. The full name of NEM is a New Economy Movement. The first block arose on 29th March 2015 and all of the coins were created in this block. Moreover, almost all of the cryptocurrencies are distributed to 1500 users, rest of them are secured in Multisig wallets.

According to coinmarketcap.com – the value of NEM is 0,207$.

Harvesting

First of all, only users with approved of an appropriate number of XEM can harvest them. What’s more, there is no place to cheat, because every user’s move is checked by the proof of importance. To follow this information, there are two types of harvesting: local one and delegated.

Local harvesting is working by the default settings as long as the computer is working and do not use NIS ( Nem Infrastructure Server). The private key is passed to the local NIS, and it’s necessary to sign a generated block. Besides, a key never leaves the computer. In short, there are three rules of local harvesting:

  • User just need to push the button “start local harvesting”,
  • have to be online,
  • at the time of harvesting cannot use NIS.

On the other hand, we have a delegated harvesting. The first difference – collecting NEM can also be done while a computer is turned off because the program is transferring the importance to the other node. As in a local harvesting – a private key doesn’t leave the computer. What does it mean in this case? Harvested awards are transferred to the original account which started the procedure at the beginning. Three rules related to this way of collecting are:

  • Collecting works continuously,
  • the cost of electricity is lower when NIS is working,
  • activating the account can take few hours (around six), and the price is 6 XEM.

Furthermore, specialists claim that the opportunity of collecting the blocks by using these methods is the same. What’s more, they cannot work together. Why? Because it’s increasing the risk of theft.

To start collecting, users has to have a 10 000 XEM on the account, and it needs to be vested. What’s else, this amount has to be on the account at least for 30 days. The main rule to remember is – the most significant amount on the account, means the biggest chance to collect transaction’ s fees from a generated block.

What’s more, do you have to know about this cryptocurrency?

Mentioned before – proof of importance, is an algorithm which takes care of the security and also ensures the truthfulness of the information related to the user and the account. It improves trust. The system does not allow to spend more than a user has.

To conclude, the algorithms and rules of program favor the credibility of the users. The system is checking every transaction, so the trial of falsification would be time consuming and costly.

Last modified: November 29, 2017

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