NEM is the hard fork of the NXT blockchain solving the problem of scalability and fast throughput. Proof of Work (PoW) blockchains have shown room for improvement. Especially, when you talk about their mining process. In the POW ecosystem, big miners benefit at the cost of small miners. Meaning, those with high computing power experience an upper hand. As a result, the ecosystem becomes pseudo decentralized. NEM uses an advanced consensus algorithm to mitigate this problem. Termed Proof of Importance (POI) analyses the vested interest of validators for stimulating decentralization. Hence no single wallet can control everything as per the Proof of Stake (POS) and Proof of Work (POW) mechanism.
To explain this in simple words, we are taking a node that wants to act as a validator. Suppose, Henry has 10,000 XEM in his wallet. He wants to act as a validator. On the NEM blockchain, 10% gets allocated as vested. So, once 50% of the token gets staked, the validator can claim block rewards.
How does POI Works?
The NEM ecosystem rewards nodes which are active within the space. So if users are making more transactions, they are eligible for block rewards and transaction fees. This may create the problem of fake transactions. For example, nodes can form syndicates to corrupt the ecosystem. To make their POI flaw-proof, the ecosystem creates net value transactions. The net value transaction determines the POI score which decides rewards. Thus making the ecosystem follow a check and balance approach.
XEM token price analysis and projections
NEM isn’t alien to the volatility of the crypto market. This token too has felt the jolts and joy during and post-pandemic era. At the moment, the crypto market is filled with pessimism. We have seen significant drops in Mana, Sand, ETH, BTC and other prominent tokens. NEM is experiencing the same fate. Despite that, the token is on the path to recovery. The credit goes to new associations and partnerships. The prices are back to the 0.205 zone which is a good sign. It is expected that in 2022, NEM will bounce back to create new ATH or All-time highs.
Projections for 2022 and Beyond
NEM witnessed an unprecedented rise to $0.85 in March 2020. This was followed by sharp corrections taking it to the 0.2$ level. Thus creating a flattish trend below the $0.76 level. Today, the current price is fluctuating in a sideways trend averaging $ 0.33. This level represents a strong support area, and analysts are announcing it as a strong buy zone.
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Courtesy: TradingView
However, with the launch of PAX stablecoin on the NEM blockchain, the token can reach the following limits as per technical analysts;
2022: $0.58
2023: $0.70-$0.72
2024: $0.85
2025: $1 to $1.2
The post NEM Token Improving Decentralization in the Cryptoverse – Hot BUY? appeared first on CryptoTicker.
NEM Token Improving Decentralization in the Cryptoverse – Hot BUY?
