On Wednesday July 10, we had the pleasure to welcome to our Telegram chat
Pedro E. Gutierrez Q., Council Member of the NEM Foundation and
Sasha Ivanova, Ambassador for the NEM Foundation in Argentina.
We asked them questions about the development of NEM, currently ranked 23 on Coinmarketcap.
Some sentences have been slightly edited for readability but the meaning has been conserved.
Pedro from NEM:
Thank you very much for giving us the opportunity to do this AMA with the GAINS community, we are happy to be here.
My name is Pedro Gutierrez Council Member of the NEM Foundation and with me is Sasha Ivanova, Business Development of Argentina, we will be here ready to answer your questions.
First of all, let me tell you a little about us:
Nem is a Blockchain platform built from scratch, launched in 2015. Because of its versatility when using APIS to consume its services, it can be used with different programming softwares. Our native cryptocurrency is the XEM and remains among the first 30 currencies per market capitalization.
NEM is short for New Economy Movement and what we offer from the point of view of implementation with our platform is versatility, economy in transactions, ease of use, security and speed.
The NEM Foundation is one of the 4 organizations that support the project. We take care of education, training and promotion of the use of our platform around the world. My position in the Foundation is Council Member, position that is obtained only by vote of the community every 2 years and I was appointed in December of 2018.
The other organizations that support NEM are
Nem Ventures: Investment arm for the ecosystem
Nem Studios: in charge of the back end and go to market of Catapult (The update of our blockchain engine)
Tech Bureau: Japanese company, which has been responsible for paying the full development of our Blockchain engine and has the marketing rights of our private Blockchain MIJIN.
This year we will launch the update of our blockchain engine CATAPULT, a blockchain of last generation, which has already 43 months of work from the point of view of development. Some of the most important features that we bring are:
1. Aggregated transactions and decentralized swaps. A “disposable” smart-contract is generated that adds several transactions in one. It is for cross-chain interactions in an environment without trust. It guarantees that all transactions reach the recipient successfully, and if not, they are automatically canceled.
2. Multi-level multi-level signatures. They are multifirm transactions with additional logic added “yes / no”. That is, at each stage you can allow or cancel a transaction, which creates a huge field for carrying out business processes.
3. System of configurable accounts. The user can configure his account in such a way that if he loses access to the account, he can recover it with the help of his cosigner.
“All these tools contribute mainly to industrial processes”
Alexandre R. from GAINS: How many people are working on NEM overall? Are they paid in XEM?
Pedro from NEM: There are about 60 people, only in the Nem Foundation. They get paid in XEM or fiat.
Telegram user Claire: In a nutshell what’s the impact when you run a node?
Sasha from NEM: You’re rewarded for running a node. The reward is calculated with your Importance rating.
Pedro from NEM: The superNode costs 3.000.000 XEMs, at actual rate is: 250,475 USD. This will not increase as our focus is not the super nodes, it is to achieve adoption from the company and governments. This gives approximately 400 XEM per day, 400XEM x 0.083USD(actual cost) = about 12k per year.
Telegram user callmenoone: It is really expensive. Do you collaborate with some services that allow shared nodes for individuals to gather?
Pedro from NEM: Yes, we call this harvesting, every person in the community who has at least 10,000 XEM can delegate this to a node harvest the benefits.
Alexandre P. from GAINS: I am wondering what kind of expenses do you expect to incur? Is your BM generating revenue?
Sash from NEM: Yes. The NEM Foundation reports the performance monthly. You can read the last one here.
We’ve been keeping busy this month as we work towards the impending #Catapult launch this Fall. Here’s the latest progress made by the #NEM Foundation👇
Telegram user Dren: Is the project open source?
Pedro from NEM: Yes, we expect Catapult will be fully open source.
Telegram user Claire: What is the consensus algorithm used by the project and how was it picked?
Sasha from NEM: The consensus is Proof of importance. We use PoI — proof of importance consensus algorithm, which was made specifically by NEM. It uses stake multiplied by transaction quantity to calculate Importance. It’s PoS that also takes into account the size and quantity of the transactions. In simple words, more active users have more Importance for the network.
PoI allows us to enable Harvesting for users and also design voting-on-blockchain solutions.
Pedro from NEM: In a basic Proof of Stake (PoS) consensus algorithm, the formation of a subsequent block in a blockchain is stochastically assigned to a coin-holding stakeholder of the blockchain weighed by a combination of factors relating to the stakeholders’ wealth.
The improved protocol considers accounts’ stakes in the network and rewards active supporters based on their activity, diminishing the rich-gets-richer problem. More information: https://nemtech.github.io/concepts/consensus-algorithm.html
We plan to release PoS+, an optimized version, where experience has been weight in from NIS chain and the algorithm adapted to be more scalable.
Regarding our new consensus the POS+, here is more info:
Specifically, it doesn't require balance history iterations, nor transaction history anymore.
For previous Importance calculation, as you can see on the old: https://nemproject.github.io — PoI used a batch history of balances to calculate activity as well as added a “multiplier” when transaction history held enough “important transactions”.
The “important transactions” part is where it was unscalable because with growing blockchain, history grew as well and PoI got too expensive to calculate.
Telegram user callmenoone: What is the token utility?
Sasha from NEM: Users pay in XEM all the gas which use DApps built on NEM Blockchain
Telegram user callmenoone: I am curious: do I need to learn a specific programming language to develop on NEM?
Pedro from NEM: No, but you can learn how to use the new features of Catapult, how to connect through APIs, how to install your own Blockchain.
Because Catapult will have a Public Version, and Private Version.
Exactly, the benefit of this is that you do not need to learn a new language. You only need to know how to consume our Blockchain through APIs.
Alexandre R. from GAINS: On the website, I’m seeing NEM nodes and supernodes, what’s the difference between the 2?
Pedro from NEM: The Supernodes Program gives us a high availability network with more speed.
Supernodes and normal Nodes run the SAME software. Nothing differentiates them in the software, only in their hardware requirements.
A Supernode runs the normal NEM node software BUT is tested for performance and throughput DAILY (or every other day). This ensures that the performance requirements are met (usually around 12 GB to 16 GB of RAM as the minimum for supernodes) ; Supernodes owners are rewarded for keeping up their node because those nodes are highly available and have increased performance.
On the blockchain side, it is not possible to tell whether a block was harvested by a supernode or a normal node, as there is no difference in the software used. The Supernodes Program is a 2nd layer program that permit owners of nodes — which are ready to enable high availability with big servers — to be rewarded for participating more in the network (by providing a high availability node…).
Sasha from NEM: Not inside the blockchain (not like in Ethereum with Solidity).
Developers can code the business logic of a contact in their preferred language and then connect it to the blockchain API.
Telegram user callmenoone: Is there a native privacy option available like on Monero?
Pedro from NEM: No.
Telegram user callmenoone: Do you plan to establish yourself more in Europe?
Pedro from NEM: For sure, during the next few months you will see more activity from a Business Development point of view.
Telegram user callmenoone: How many companies are currently testing Catapult?
Sasha from NEM: NEM has various pilot projects, but even more projects are made by startups who use the NEM Blockchain.
Here in Argentina, I have 3 big enterprise pilots and one government project. In each country where NEM operates, there are a bunch of pilot implementations. It varies from country to country.
Telegram user callmenoone: I have heard about a plan to put a Chief Risk Officer (CRO) in place. Can you tell us more about that?
Pedro from NEM: Of course, this new position will help design a global strategy to generate income to the foundation, this will be in the first level. However, it will have a second level that will generate regional strategies with the Business Development Managers, in order to be able to attack each of the markets where we have presence and at the same time be able to adapt to each of the different cultures and accelerate the time of success in this exercise.
Telegram user Navegante: What milestones do you have in place? How will you let investors know when said milestones are achieved?
Pedro from NEM: The NEM foundation is a global organization, which has professionals all around the world. Usually, news about the milestones we achieve are in the media. The most important ones that we have from the point of view of development are the alliance with the Ministry of Education of Malaysia and with the National Electoral Council of Ukraine.
There are also some other projects of great impact with companies that are currently under NDA.
Telegram user callmenoone: Compared to big players like Ethereum and Bitcoin, Nem doesn’t have many developers and has a limited network effect. What are your plans to improve those aspects?
Pedro from NEM: With our new blockchain engine Catapult we have a massive plan to increase the number of developers using our technology.
We put live in 2 months an Educational Online Platform for all the developers who want to learn how to use Catapult. This Platform will be multilingual.
Sasha from NEM: It’s not really like this. The advantage of NEM that developers can code on their preferred language and use NEM APIs.
Alexandre R. from GAINS: Who is your main competitor?
Sasha from NEM: The main competitor is always the common way to do things. In our case our main competitors are companies with traditional slow centralized business processes.
Pedro from NEM: Stellar, Ethereum, Tezos.
Alexandre R. from GAINS: What do you think could be weaknesses or things to work on for NEM?
Pedro from NEM: I do not really consider that there are weaknesses to work on for the NEM Foundation.
For me it is a great challenge to be able to actively participate in our ecosystem and to work every day to make NEM reach the massive adoption that we are so looking forward to.
Sasha from NEM: I personally suffer, because there’s still no regulation. A lot of our governmental projects are “on hold” because of this reason.
Alexandre R. from GAINS: I see. Do you also work with regulators to address these issues and make matters move more quickly then?
Sasha from NEM: All the time. Here in Argentina we even participated in presenting the Law draft.
Telegram user callmenoone: Oh, you have governmental projects ?
Sasha from NEM: A few. The most known one is in Dubai.
Telegram user callmenoone: What is the governance on NEM, how is it organised, can holders be part of decisions?
Pedro from NEM: We have a graphic for this.
Telegram user callmenoone: Who can be elected ?
Sasha from NEM: The Executive committee is elected by the community. And they report to community as well.
Pedro from NEM: The people that appear here: https://nem.io/about/foundation/ make up the executive committee.
There is the President, Vice President, Secretary, and Treasurer, plus 6 council Members. We report to the community and our Holders. The NEM Community has a strong voice. We can say the community is a main stakeholder in the NEM ecosystem.
Alexandre R. from GAINS: Are you personally holding XEM? If so, are you able to share what % of your portfolio it is? I’d rather ask people what they do than what they think as actions speak louder than words.
Pedro from NEM: Yes, more than 70%.
Alexandre R. from GAINS: Wow, OK.
Pedro from NEM: And buying in all supports.
Alexandre R. from GAINS: How has the journey been so far with NEM? Both personally and seeing the project grow, what have you learned?
Pedro from NEM: Personally, it has been very interesting, I have met a lot of people in different countries, which has allowed me to expand my network of friends especially. Many valuable people. Professionally I have learned a lot from the Blockchain ecosystem and every day I am more motivated.
From the point of view of NEM, I have seen how we went from a regional organization in 2018 to a product-based organization in 2019. It was a correct decision, however it has been a competitive path that we have had to go through, after 6 months in operations in 2019, everything is very organized and well prepared professionally and technically for what the market requires. And Nem will surely be the most talked about projects in all parts of the world, since we come with a great revenue strategy that will allow better penetration of the markets and generate the sustainability that the community requires.
Sasha from NEM: Actually that’s why I like NEM. You can be sure that your voice will be heard.
And during the time with NEM, we have built so many amazing proof-of-concepts.
They will change a lot of industries in the near future, I’m absolutely sure
Pedro from NEM: I would also like to tell you that our ally Nem Ventures, is constantly looking for entrepreneurs with solid projects, that have a good planning and that of course are built on the Blockchain of NEM. They can invest in these projects. I leave you the website: https://nemventures.io/submit-proposal/
Alexandre R. from GAINS: Thanks, interesting. Seems important to start capturing this market like Binance and other exchanges are doing. Might be useful for some projects who have a decent product but still have trouble raising funds.
If there’s no other question and if you have nothing else to add, we’ll conclude this.
It was interesting and I’ll definitely do deeper research on my own. Government partnerships seem to be part of the holy grail and if you have some ongoing, then it’s very promising.
Pedro from NEM: One of the new features that we bring with Catapult is that we will focus on the SECURITY TOKENS market, this we hope will position us as one of the most attractive options for entrepreneurs, developers and customers in general.
I want to thank the community of Gains and especially @Alex_andre_18 and @Firunner for giving us the opportunity to give more information about our project and our technology.
We are always at your service for any questions you may have. I will stay in the channel since I am also a Trader and I like to be well informed.
BTW, I expect correction of BTC up to 11,660USD. (Note: his call was spot on). — Pedro from NEM:
It was a pleasure having you and learning from your passion. — Alexandre R. from GAINS:
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