The pseudonymous nature of Bitcoin is of great benefit to many individuals and certain industries, but as far as regular society is concerned, not so much. Society organizes itself vie relationships and trust structures, and reputation is one aspect of this organization principle. The Bitcoin blockchain is very mechanical and efficient in it’s operation, just alphanumeric wallet IDs sending digital codes to each other, with no apparent relationship to each other. A new blockchain based alternative cryptocurrency called the New Economy Movement (NEM), is attempting to create a more fair and functional digital money – that encourages usage and prevents centralization and hoarding.
“We could prevent the corruption of centralized power when we embrace grassroots movement and decentralization.” – http://wiki.nemcoin.com
“We could transform the boss-employee hierarchical relationship in most conventional working environments to one where people are partners and friends and making decisions in a democratic fashion.” – http://wiki.nemcoin.com
NEM is a hybrid cryptocurrency between the Proof-of-Stake (POS)/Proof-of-Importance (POI) algorithms. In traditional POS networks, the majority of the minted coins gravitate towards those with the largest balances. In contrast, the POI algorithm rewards those miners, which are deemed most important to the network. The POI algorithm will determine the eligibility of miners, by taking into account various metrics such as; a miner’s NEM stake balance; how much NEM a miner has sent to other network participants; and how much NEM a miner has received from others. The POI algorithm is still being designed, and further details will be released in a white paper. The NEM blockchain will also have many advanced functionalities such as; colored coins; decentralized asset exchanges; storage of data and communications and parallel blockchains.
The NEW network will have a total distribution of 8,999,999,999 currency units. According to NEM’s wiki, “If you are willing and eager to join the NEM ecosystem, please consider buying a NEM stake either on the NXT AE or during the public auction that we will announce shortly. This will entitle you to be a regular stakeholder with a share of 1 million NEM upon NEM’s official launch.”
Proof-of-work digital currencies such as Bitcoin were designed to be decentralized, yet look where Bitcoin is today. Large centralized mining pools have replaced individual miners a long time ago on the Bitcoin network. True decentralization is theoretically achievable, but very difficult in practice.
Date of publication: March 13, 2015