NEM came into life as a pioneering project from its inception in 2015 with a strong focus on community participation and technological innovation. This helped bring together a talented and passionate group of blockchain enthusiasts that comprised the early NEM community. That community is now just over five years old, and NEM NIS1 has developed into one of the most established blockchain networks in operation, and has a number of social, commercial, and technological accomplishments under its belt.
The soon-to-launch Symbol blockchain builds on these achievements in order to provide businesses with an easy to use but highly customizable, technically proficient blockchain platform that caters directly to their needs.
NEM – a history of innovation Since its inception, NEM has pioneered a number of technological breakthroughs and set new benchmarks for blockchain technology. Some of these benchmarks include establishing the Proof of Importance (PoI) consensus mechanism which provides an alternative to the resource heavy Proof of Work (PoW) algorithm, and the more efficient but still slightly flawed Proof of Stake (PoS) algorithm.
The PoI consensus mechanism assigns every account with an importance score, and expects each account to have 10,000 vested XEM, and to have made a number of transfers within the last 30 days. This is necessary in order to maintain a healthy level of network interaction and reward more active network participants.
In addition, Harvesting and Delegated Harvesting are complimentary innovative features which allow nodes to calculate blocks and add them to the blockchain. Harvesting on NEM also allows anyone to take part via their desktop wallet.
Furthermore, a wallet can hide behind a firewall and connect directly to the NIS via the local network. The ability to contribute to the network whilst being “offline” has opened up a new world of possibilities with regards to network maintenance and governance and NEM has been at the forefront of these developments.
NEM also developed the first blockchain-based multi-sig solution, and incorporated an encrypted messaging solution into user wallets early on, that allowed unencrypted and hex messaging.
The NEM NanoWallet is also a fully featured, desktop wallet that allows account holders to participate in various network activities such as voting, harvesting, multisig, and Apostille. Furthermore, the NanoWallet allows for the creation of Namespaces, and the creation and transfer of Mosaics.
Namespaces is a unique naming convention which allows anyone to create a brand or one of a kind identifier that cannot be recreated within the NEM ecosystem. Users can also create multiple sub-namespaces which can be used to represent products and services with the main namespace representing the overarching brand name.
The development of Mosaics has also helped to push the space forward and allows assets to be created in a variety of ways (i.e. mutable/immutable, capped/uncapped, divisible/non-divisible).
With Mosaics, users can create their own Smart Assets which may be coins, digital documents, music, or art, and these features are in turn part of the Namespaces naming service. By using Namespaces, organizations are able to build easily identifiable brands powered by NEM and supported by blockchain immutability.
As we can see, the technological prowess of the NEM platform has helped to engage the community, as well as push forward the boundaries for the greater blockchain community. The technological developments have also helped NEM to host a range of blockchain based services that directly solved “pain points” business owners were experiencing.
Symbol provides much needed solutions
Symbol builds upon the prior developmental work conducted by everyone involved with NEM NIS1, and incorporates a number of improvements in order to provide a highly fine-tuned service which directly addresses the needs of modern day enterprises.
The Symbol tech stack incorporates further innovations in Mosaics, Namespaces, and Smart Asset issuance. These improvements allow Symbol to provide a range of efficient services for organizations in a wide range of sectors.
For example, the development of Mosaics allows creators of all kinds to create Non Fungible Tokens (NFTs) which can be stored, and/or traded as desired.
NFTs are unique by design, with each token or asset representing a “one off” digital creation. These creations are not fungible and cannot be exchanged in the same way as XEM. For example, as 1 XEM represents 1 XEM universally. NFTs allow creators to digitize art, trading cards, games, and in game creations in order to create a new class of digital asset and crypto-collectible.
Symbol allows for numerous configurations for Mosaics which provides creators with the ability to customize their creations as they wish and help to develop their own marketplaces. These features in turn provide traditional retail outlets, such as galleries, with an easy to use platform that enables digital registry and proof of ownership of an asset and/or product.
In addition, improvements such as Mosaic Restrictions and extensive options with regards to verification and configuration allow organizations to use Symbol to issue their own Security Tokens. The ability to set strict verification requirements allow regulatory compliant Security Tokens to be issued with anyone holding the tokens needing to to pass off chain verification processes, with the confirmations being held on chain.
Furthermore, ongoing work with Aggregate Transactions allows for multiple transactions involving various parties to be processed in an “all-or-nothing” batch of transactions wrapped in a single outer transaction. This allows transactions to only be processed if every member in the group acts accordingly and facilitates a range of peer to peer, multi-party asset swaps or trades. These can include group loan agreements, donations, fund-raisers, and family contributions.
The incorporation of Multi-Layer Multi-Signature Accounts further allows for even more sophistication and security with regards to authorizing transactions, and secure fund storage.
The road ahead
As a result of these technological innovations, Symbol caters directly to the needs of organizations and entrepreneurs in emerging sectors such as Tokenization Decentralized Finance (DeFi) which are set to grow significantly in importance over the coming years.
At the same time, Symbol has been designed to cater for the needs of businesses of all sizes in a range of sectors, and to bring practicality and ease of use to working with blockchain technology. This is illustrated by the ability to use Symbol to create “one off” or one time use, disposable smart contracts which help companies to easily incorporate modern, digitized verification systems into their daily operations. These smart contracts can be used across the board in areas such as retail, manufacturing, data management, KYC verification, and supply chain management.
These innovations allow Symbol to provide solutions for forward thinking companies in both traditional and emerging markets, and help to define a clear road ahead for everyone involved.
ABOUT NEM Group Ltd.
We exist to ensure that the NEM ecosystem is a significant contributor to the next evolution of blockchain by ensuring mainstream adoption and use of NEM’s blockchain solutions. This can only be achieved through a strong, healthy ecosystem that works together through collaboration, transparency and openness. Because together, everything is possible.