The new blockchain technology NEM (XEM token) is making news today, and some even compare it to the Big Brother of all, the mighty Ethereum. Market cap of NEM is 16 times less than that of Ethereum which reached 80 billion dollars, so one may wonder if it makes any sense to compare them. This leaves developers wondering, how these solutions are fast and easy to deploy? Does it have what it takes to beat Ethereum or at least appear in the list of top ten cryptocurrencies by market capitalization? Let’s find out.
While both these cryptocurrencies appear to be essentially similar, they target different customer bases and have a different time to market. Ethereum is entirely decentralized and NEM has a centralization angle to it because the customer’s data is stored in one location. But in some aspects, NEM is already ahead of the competition.
Advantages of NEM and Ethereum
There are two serious advantages to Ether: it’s wide decentralized app user base. As a cryptocurrency token, it is more versatile, better researched and more exhaustively tested for safety than its new counterpart. Ethereum development is done on a unique language called Solidity which is in high demand among developers.
One of the most attractive attributes of Ethereum is its ability to host self-executing smart contracts. While some complain that smart contracts, when built into the blockchain, are harder to repair in case of a breach, once smart contracts are made immutable they cannot be altered or forged.
On the other hand, NEM is hosting similarly functioning smart contracts off the blockchain. This has its benefits since the data only touches bases with blockchain twice, on entry and on exit which makes the whole application a lot faster as it doesn’t require a lot of computing power to access all of the assets locked in the blockchain. Its clients are also equipped with data management tools that enable efficient work with blockchain assets via APIs and a Lego-like structure that NEM named Mosaics. Called smart assets, these pieces of code are similar to smart contracts in a way that they allow creating data records, tokens, and other types of data within a few clicks. A drawback to this ease is that smart assets are stored on the NEM centralized cloud which hardly makes them decentralized.
Choosing currency for Integration
Another difference between two technologies is the scope of work. Ethereum ideal customer wants to revamp the IT infrastructure on a corporate level and understands that it may require a significant investment and more than five years of time. This makes it more of an enterprise-grade solution that can be successfully deployed only by global players or those who build their solutions on Ethereum from the ground on, and these are the majority of ICOs out there.
NEM is targeting companies that don’t look for custom solutions deployed at their premises. Such businesses cannot always afford a team of developers to rebuild their infrastructure. They want a secure, plug-and-play, ready-to-use blockchain solution that can be compatible with their existing systems and that can be scaled on top of them. This way even medium-sized businesses can quickly gain access to the blockchain-based technological system without building it from scratch. They don’t need to hire a team of programmers skilled in Solidity language (and these skills come at a very high price!) and instead they can use an in-house existing team to integrate their existing technological framework with NEM applications.
Financial companies may also appreciate the fact that NEM can include both the private and a public blockchain systems into the company’s IT framework via its Mijin platform. This provides companies a certain some degree of privacy when it comes to their data assets. Maintaining privacy is very hard when it comes to creating a blockchain application working on Ethereum technology.
It may be only a matter of time for NEM to reach the sizeable level of market capitalization and truly compete with major coins. This is not to say that the influence of Ethereum is diminishing. But in the ranking of technologies with the highest potential NEM could certainly score the place among the top ten coins.