What is NEM and XEM? Why is it Japans 2nd favorite cryptocurrency?

in today’s episode of crypto talk we take a look at what is right now by market cap the seventh largest crypto currency in the world it is of course nem or xcm if we’re talking about the currency so we’ll take a look at the details what it does how it’s different from Bitcoin and what a might do in the future so stay tuned we’ll be right back name is currently the world’s seventh largest cryptocurrency by market cap it’s trading at around 12 cents and is based on a newer blockchain technology it was originally launched in March 2015 and it uses a centralized blockchain that is similar to – one of the concepts that makes name unique is the fact that it doesn’t have any miners it has what they call harvesters so when them was originally launched all the coins were distributed to members and then the members distributed them amongst the community and the only way to earn them coins is by processing transactions so there’s a very low transaction fee each time you send money and that is paid to the people that are running the super nodes or the centralized blockchain they process the payments for the network and they get to harvest and reap some of those rewards what this means is it takes about 100 times less electricity to send an EM payment than it does a Bitcoin payment because with Bitcoin the coins have to be mined and the mining takes a lot of power and as the difficulty increases we need faster computers we need more and more power and we keep drawing more electricity so that’s great in terms of security but as far as just playing efficiency nem is a much more efficient way to send transactions if you looked at the amount of electricity used nem is extremely cheap the example that I was given is it costs around $0.10 in transaction fees to send $1,000 which means it has some of the lowest transaction fees of Eddie any of the digital cryptocurrencies no inflation is possible at all because all of the coins have been distributed so there’s no way to add to the supply so that increase or in the map that means that without increasing the supply if the demand increases the price will continue to increase so the network has some security or price stability in the sense that there is no there are no ability to produce more coins or introduced new coins to them into the market the only way to earn coins would be to purchase them off somebody else or earn by owning a super node and processing those transactions it has an inbuilt messaging capability which is nice one of the more interesting side notes is that I know that payments are very low so I’m talking about a lot of money but you actually get charged to send the message so depending on the amount of characters you use you get charged a tiny tiny fraction of a percent to use the messaging service but I just thought that was sort of novel and unique it takes six seconds for a payment to show up in a wallet takes around 20 seconds to confirm so this is solving the blockchain the this solves bitcoins inefficient Network which is taking two and a half minutes for confirmation sometimes it can only process five or six transactions a second so name is a much more scalable solution so much faster network it’s based on the newer Bitcoin technology whereas Bitcoin was founded almost five years for six years prior to them it’s the second largest cryptocurrency used in Japan so it’s been proven that it can handle 3,000 transactions per second whereas the Bitcoin network is right now struggling with five or six transactions per second in addition to handling the volume it can also keep the transaction fees low whereas Bitcoin because of the limited bandwidth has to keep raising their transaction fees higher and higher it’s 100% traceable so it’s not for any of the privacy advocates it is made to I guess replace Visa or MasterCard in the examples where I’ve seen it or the use cases I’ve seen it it has been shown to be more of like a direct competitor to PayPal or Visa it’s not the libertarians dream it’s not the the idea is not for secrecy it’s for the open blockchain it’s for the accountability and it’s for ease-of-use and speed and scalability I would say its main features when you compare this technology to any of the older technologies like VIN moe or PayPal or even visa visas like two and a half percent to 0.9% PayPal I think can be 1.9 percent if you use a credit for card 1.5% venmo I think right now is still at 1% 1.9 percent and correct me if I’m wrong – is not – it’s a similar technology nem is point zero one senso it’s like 1 cent per hundred dollars it’s a fraction of the cost one of the questions that I get asked a lot from people is if there’s no – and nobody’s making more of these coins how do you make decisions on the network and they use what’s called proof of importance proof of importance is very similar to proof of State and that means that if you own a lot of them you are able to become a super node if you’re a super node you’re able to take part in the voting process and the more coins you own the more votes you’re able to use so what happens is the development of the cryptocurrency the idea behind this is that the development of the cryptocurrency will be in its best interest because if you own a lot of em coins you’re going to vote for changes that help it and make it continue to increase in value you wouldn’t want to hold a lot of memens and then make terrible decisions they’ll make short-sighted decisions because then you’ll lose the value of your coins so in order to start earning money harvesting you need around ten thousand them and they don’t ought to become a super node you need three million them so if any of you are looking for an opportunity might be something there once you start harvesting you get part of the transaction fees so in a sense you sort of become what would be a bank in a normal brick and mortar situation only instead of charging 2.9 percent your charging point zero one percent but it’s very profitable and because you’re not using or it is profitable because you’re not using electricity and you don’t have all of the overheads like financial institutions do so my opinions on them is it looks to solve a lot of problems that Bitcoin has it definitely came along a lot after Bitcoin so it definitely was able to address the scalability issues it seems to be working well the transaction fees seem to be low I’m not anti nem I wouldn’t not invest in it but I wouldn’t be rushing it up to like the top of my choices in crypto currencies only because it’s just more of a functional coin rather than I think something that’s going to change the world or something that’s incredibly innovative I think then wouldn’t be on the top my list for coins to invest that’s not because I don’t think it’ll go up in value or it serves a purpose I just think there’s so many great crypto currencies that are taking on so many hard problems them just seems to be a very functional coin that sort of sitting in the middle while we transition to I guess a more revolutionary disruptive technology guys thanks for watching my channel if you’ve seen any mistakes in these videos make sure you comment following me every time somebody like one of my videos I water these plants every time somebody subscribes to my channel I give them the trees every time somebody shares a video on Facebook so if you like gardening dogs America or cryptocurrency you should support this channel [Applause] you

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