A lot of startups and new projects are entering the crypto space and it’s important for investors to understand the procedures of different projects using the Blockchain technology. In 2016, $50 million in digital currency was stolen using a fictitious investment fund known as the Decentralized Autonomous Organization, or DAO. As such, investors are hungry for trustworthy organizations to do business with.
NEM vs. Ethereum
Entrepreneur confidence is hard to achieve but easy to lose, particularly when correct information is missing in the Blockchain ecosystem. People are looking forward to a developmental framework that allows building robust applications having the highest level of security.
Ethereum Smart Contract Pros & Cons
Ethereum (ETH) has been the blockchain technology of choice providing the flexibility required for a Smart Contract based infrastructure. With its wide range of tools made for and by developers, it has a well-defined architecture and high-security standards. Nevertheless, Ethereum Smart Contracts are not without their problems, requiring “gas” or a sort of tax to run, since a contract requires all nodes in the network to execute at the same time, making for an inefficient system that requires a lot of energy to run. That said, Ethereum is still an excellent option, as the standard technology for ICO tokens. In the long term, this could provide substance to utilizing Ethereum as an investment.
Some compare ETH to Android OS, where developers create apps on an open-source platform where security may not be the top priority. This sometimes leaves developers wondering how to encourage adoption of the blockchain when security holes are not an option.
NEM dApps vs. Ethereum dApps
This is where NEM comes into the picture; it’s been built from scratch and reportedly tried by banks and large corporations. Touted as the “smart asset blockchain,” its developers reportedly test every release of the NEM secure core extensively. By using combinable functionalities, NEM’s developers have built powerful applications founded on a tight set of atomic operations that coders can interface with by way of a REST API.
This application framework is the result of combining Mosaics, Namespaces, three forms of messaging and 2.0 multi-sig contracts. Different functions are assigned meaning, and combined in various ways to create apps used for voting, tracking, and logistics, notarizations, transmitting financial value, ID management, and land management etc. In simple terms, it’s highly versatile as an alternative to Ethereum when developing Smart Contracts.
NEM Community Apps
Members of the NEM community have developed a number of open-source projects on the platform, including:
- Hot/Cold Wallet
- ioNEM (IoT and blockchain)
- Landstead (land registry)
- NEM Authenticator (2 Factor Confirmation mobile application)
- NEM DNS (decentralized DNS)
- NEM Faucet (free XEM for the NanoWallet)
- NEM ID (secure public key for sign-ins)
- NEM krs (Key Recovery Service)
- NEM Microwallet (Chrome extension)
- NEM Pay (payment app)
- NEM PayContent.JS (micropayments)
- NEM Tools
- NEM Vote (NanoWallet voting and polling platform)
- NEMp3 (download payment web app)
- NEMventory (SAAS application creation)
- PacNEM (Pacman game browser)
- Woocommerce Payment Plugin (ecommerce)
- XEMsign (multisignature transaction signing)
NEM’s Scalability & Speed vs. Ethereum
Scalability is the most critical thing about NEM’s decentralized application. While ETH does a maximum of 15 transactions per second, NEM reportedly manages hundreds of transactions per second. The NEM foundation has given security and availability a priority so entrepreneurs deal with other problems and not technical difficulties.
While NEM is reportedly the faster, safer and easier technology, ETH provides a broader base for the creation of custom DApps (Decentralized Applications). The main difference is that ETH applies its Smart Contracts on the Blockchain, while NEM uses code off the blockchain. Although this might arguably make it less decentralized, the method does have its benefits, such as better security, easier updates, faster execution times and lighter code.
NEM Smart Assets
NEM has customized data management apps called smart assets through which you can create tokens, data records, voting systems and other coins with just a few clicks. Where Ethereum is targeting companies intend to rebuild internal networks in the next 5 to 10 years, NEM is targeting companies looking for a fast, secure, and ready to use and handle solution that’s current. It will be interesting to see which companies adopt NEM over Ethereum, and how that translates into price and trading volume on the coin exchanges.
Additional Resources on NEM vs. Ethereum
Since this article was first published, a number of sources have published their own comparisons between NEM and ETH smart contracts and functionality. Take a look at some of the videos below:
Dennis Consorte has an appetite for news and information about cryptocurrencies, blockchain, IoT, fintech, adtech, martech and other technologies. He also has over 20 years’ experience in digital marketing and content strategy.
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