What is NEM?
If you don’t know already, NEM is so much more than yet another cryptocurrency. NEM is a full blockchain platform for messaging, payments, custom assets, and a whole lot more. For more information about NEM you can read this blog post.
What is XEM?
XEM is the standard currency of NEM, and it is quite similar to well-established coins or banknotes, such as USD, EUR, JPY and others. You can buy XEM for Bitcoins (BTC), CNY, or JPY on exchanges such as Poloniex, Bittrex, BTC38, BTER, Changelly and Zaif.
The faucet is a one-time tool for anyone to get free XEM added to their wallet. The faucet is funded by donations which in turn are given to newcomers, or to users who have not claimed their share yet.
You can find a testnet faucet here. It is a good place to get some test XEM to test out the platform.
The NEM wallet has the ability to run on any operating system supporting Java, such as Windows, Linux, or Mac OSX. Starting out your adventure into the world of NEM and the business behind it, you will need a wallet, just like in normal day to day life.
How do you get one? Simple.
You can get the lightweight wallet, which does not require downloading the entire blockchain like other platforms from here. Or get the full-featured wallet and sync a local copy of the blockchain, as well as other options, from here. If you are asked for a password, it is “nem”.
After the wallet software is downloaded and installed you need to create a new wallet. Just click on the button – “create new wallet”. It is of utmost importance you create an extremely strong password because cryptocurrency or not, it is still currency, and you don't want to lose it. The best way to ensure that is to use upper and lower cases when writing, as well as inserting numbers and special characters or to use a good pass phrase wallet. Keep in mind that the lightwallet currently generates a brainwallet, which means that anyone with your password has access to your funds.
Mobile wallets are currently also in development, and are compatible with both Android and iOS.
As opposed to traditional blockchain platforms, which require a great amount of computing power, NEM operates using POI or Proof-of-Importance. You can read more about this here. This version of mining with less power is called harvesting. Harvesting is a process where a node will calculate certain blocks (about one every minute) and add them to the blockchain collecting or “harvesting” the fees in the process.
To begin harvesting, you will need to have a minimum of 10,000 XEM, and it needs to be confirmed, aka "vested"; a kind of aging in of XEM implemented in NEM. Your wallet will get 10% of the total amount of remaining unvested balance to become vested every 24 hours. For example, you would need 100,000 XEM to start harvesting after 24 hours.
Once you start delegated harvesting, you can safely go offline as the wallet doesn’t necessarily need to be online. The platform ensures your wallet is protected by eliminating the necessity for it to be online at all times. You can stay hidden behind a firewall and only connect to the NIS by means of your local network. This means your private keys never leave your computer!
Supernodes is a node program that rewards users running high powered nodes that serve both the light desktop-based wallet and the mobile wallet. Running a supernode yields more XEM than harvesting, but it requires at least 3 million XEM in order to start running, so it is less accessible. XEM is distributed among supernodes at a rate of 70000/per day divided by the number of supernodes. When running a supernode you also get rewarded for regular harvesting, so nothing is lost.
NEM Community Fund
This 300 million XEM community fund was created to help startups. While it can be used by virtually anyone and everyone, however, you will be required to convince the community when presenting your idea as well as provide credentials to prove that you can build what you say you will.
A couple of past projects funded by the Community Fund are Apostille and Crypto Apex.
Community Fund Requirements:
- Each project is allocated a maximum of 50 million XEM for registered companies and 5 million XEM in the case of individuals or open source projects.
- Applicants are required to show at least 250 NEM Forum posts to highlight their involvement. Companies can have cumulative posts. New clients can find a partner from inside the community.
- The company must show sufficient XEM in their account.
- Real identities must be revealed, but only to the committee and upon the approval of said application.
- A project description with information such as the target market, the project’s nature, size, etc are required. A summary is also needed for public review.