During Meetup #6 we got a presentation from Helmut Siedl about NEM Blockchain Technology.

1. Introduction to NEM
www.nem.io

2. • NEM(cryptocurrency)?
• NEM at a Glance
• NEM Key Features
• NEM Use Cases?
• Looking Ahead
OUTLINE
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3. CRYPTOCURRENCY?
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“NEM is more than just a cryptocurrency or a new altcoin; it is an
entire platform built on revolutionary blockchain technology,
reimagining from scratch the ideal blockchain. NEM does not only
allow for standard peer-to-peer value transfer transactions, but
instead does much more – store data, make transactions, prove
identity, timestamp documents, and create arbitrary digital assets.
Using secure cryptography, it can be used for a wide variety of
applications across many industries, including the financial
industry, government, logistics, and the medical industry. The NEM
platform is a highly available system that any business,
government, and/or an individual can make use of to shorten the
design lifecycle and reduce their cost of operation.”
Lon Wong, Dragonfly Fintech CEO

4. Overview:
✓ Planning started in January 2014, and launch in March 2015
✓ Four full-time professional developers
✓ Reboot of the ideal blockchain
✓ 100% new code from scratch
Features:
✓ First editable m-of-n multisig with blockchain based alerts
✓ Asset creation with NEM Mosaics featuring fixed or editable supplies, descriptions,
levies and transferring rights
✓ Namespaces for management of unique domain names on NEM blockchain
✓ Offers encrypted, unencrypted and hex-messaging
Network:
✓ Easy to use universal APIs
✓ Two-layered platform with focus on security, safety, and scale
✓ Nodes can be run on inexpensive machines and run independently of wallets
✓ Fast block times
✓ Has mobile wallet for both iOS and Android and NanoWallet for the Desktop
Permissioned Chain:
✓ Mijin: Private permissioned ledger sidechains from Tech Bureau starting in 2016.
AT A GLANCE
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5. Namespaces
• Namespaces allow users to own unique domain names.
• Just like a person or group owns a website on the internet, an individual
may own a domain on the NEM blockchain.
• There are unique root-level domains and non-unique subdomains.
• It also helps to build and maintain a reputation system for services built
on registered names. One such example in NEM is the blockchain
supported asset feature, named Mosaics, but examples could include any
third-party distributed naming systems an app builder can imagine.
Example: spaceminers.mars.moon
- Namespaces (root-level): spaceminers
- Sub-domain 1: mars
- sub-domain 2: moon
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MAIN FUNCTIONS

6. Mosaics
A mosaic is an asset in NEM. Mosaics are good for cryptocurrencies, stocks,
coupons, IOU’s, fiat pegs, and any other kind of financial asset.
• Anybody can make their own asset, so it is like having your own cryptocurrency.
In fact, the native cryptocurrency of NEM is XEM and XEM is also a mosaic. The
following diagram explains how a mosaic gets its name.
Example: NEM:XEM, Alice:Alimoney, and Bill:Billcoin, and are all three mosaics and
additional mosaics can be made by anybody.
5 NEM’s currency is
“XEM”
NEM:XEM
Alice’s currency in
NEM is “Alimoney”
Alice:Alimoney
Bill’s currency in
NEM is “Billcoin”
Bill:Billcoin
Namespace:
NEM
Namespace:
Alice
Namespace:
Bill
MAIN FUNCTIONS

7. Mosaic Description and Levy
• Assets have a personalized description
Example: BILLCOIN from BilI Trading Co., Ltd. is used to maintain the welfare
of animals in animal shelters and is accepted at all pet stores that have
partnered with Bill Trading Co.
• Mosaics can be made with or without levies. In this case, a levy is an
extra fee on a transaction. Each time a transaction is made with that
mosaic, a small fee is redirected to the creator of the mosaic.
Example: Bill pays Bob some ALIMONEY, but since Alice created the mosaic
with a levy, she gets a small fee paid to her when the transaction is sent.
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MAIN FUNCTIONS
Bill Bob
Alimoney
Alice
l
e
v
y

8. Mosaic Transferability
• Assets can be made transferable or non-transferable among third parties. A transferable
asset can be sent to anybody without restrictions. A non-transferable asset can only be
sent from an issuer to a user, and then from the user back to the issuer. A user can not
send a non-transferable token to any other user. They can only send it back to the issuer.
• Non-transferable assets are good for land entitlement, voting tokens, tickets, or user
identification.
7 Billcoin can be transferred among any
3rd parties regardless of relationship of
the issuer.
Transferable asset
Bill Bob
AliceChuck
David
BillcoinBillcoin
Billcoin
Alimoney may only be included in
transactions between the issuer and the
user.
Non-transferable asset
AliceDavid
Chuck Bill
Bob
Alimoney Alimoney
MAIN FUNCTIONS

9. Mosaic Supply
You can customize your assets according to the following criterion:
• Assets can be locked into a fixed supply, or a person can select mutable
supply.
• Assets can be made divisible or not up to 6 decimal places.
Example: XEM is divisible so a person can send small amounts like 0.36
XEM, 0.000007 XEM. It is also a fixed supply, so only 9 billion XEM were
created and no more will ever be made.
But BILLCOIN is not divisible so it must be sent in whole amounts like 1
BILLCOIN, 5 BILLCOIN, 380 BILLCOIN. Also, BILLCOIN was made to be
mutable, so Bill can create or delete extra BILLCOINs as needed.
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MAIN FUNCTIONS

10. Multi-User and Multisignature Accounts
• NEM’s multisig works by on-chain contracts.
• These are not complicated smart contracts that can be messed up.
Example: Alice, Bob, and Chuck have their own accounts. Account M is also a
separate account.
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MAIN FUNCTIONS
Account M
(Multisig Budget)
Account 1
(Alice)
Account 2
(Bob)
Account 3
(Chuck)

11. Multi-User and Multisignature Accounts
• Multisignature accounts are accounts that can be owned or shared by other
people, not unlike a shared checking account at a bank, but with more
features, e.g., multi-phase transaction approval from each cosigner.
Example: The private key (the secret code that unlocks the account) of the
multisignature account M, is no longer important and not used. Meanwhile, Alice,
Bob, and Chuck have custodial control over Account M.
MAIN FUNCTIONS
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Account M
(Multisig Budget)
Account 1
(Alice)
Account 2
(Bob)
Account 3
(Chuck)

12. Multisignature and Multi-User Accounts
• NEM’s multisignature contracts can easily be edited.
• The only information that is needed is another person’s account address.
Example: With only a few clicks, Chuck’s account is removed and Davie’s account
is added.
MAIN FUNCTIONS
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Account 4
(Davie)
Account 1
(Alice)
Account 2
(Bob)
Account 3
(Chuck)
Account M
(Multisig Budget)

13. Multisignature and Multi-User Accounts
• The cosignatories can be assigned in any m-of-n combination where
both the m and n can be any number of 1-32; this includes 1-of-1
multisignature contracts.
• A 1-of-1 multisignature account is possible in NEM as the account being
turned into a multisig account has its private key nullified; meaning it no
longer has any power to initiate transactions.
• Only a cosignatory’s private key can initiate transactions on the
multisigged account’s behalf. It is therefore that accounts in NEM’s
multisig implementation can be analogously thought of as parent/child
accounts, where the parent accounts are the cosignatories and can
make the child account make any transaction.
MAIN FUNCTIONS
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14. Messages
• Messages in NEM come in three flavors: open, encrypted,
and hex.
• They can be of any length up to 320 characters (272
encrypted), and messages can be strung together if
needed.
• In the digital age information is very important and
valuable, and the blockchain is designed to secure and
transfer valuable data, e.g., KYC, property registration,
patents, and more.
MAIN FUNCTIONS
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15. NanoWallet
NEM has released its new NanoWallet. Written in Javascript, it is a light
and multi-platform wallet for Windows, Mac, Linux, Android, and iOS. It
offers support for all transaction types on NEM. It also introduces NEM’s
Apostille, which is a blockchain notarization app where a user can make,
edit, update, transfer, and split ownership of blockchain notarizations.
MAIN FUNCTIONS
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16. Apostille
• NEM has released a new blockchain notarization service. For the first
time, blockchain notarizations are now updatable, augmentable,
transferable, can be certified by third parties, and can be conjointly owned
• Apostille notarizations are good for property titles, business contracts,
tracking items in logistics, certificates, tickets, and counterfeit prevention.
MAIN FUNCTIONS
Conjointly Own
Transfer
Notarizations 3rd Party Certification
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17. USE CASES
✓ Making digital assets to represent any financial security with NEM Mosaics
including fiat representations, game tokens, coupons, member loyalty
points/awards/miles, micropayments, remittance applications and so on.
✓ Using the NEM Namespace feature to act as a decentralized DNS.
✓ Tokenized Proof-of-Existence and ownership of digital documents, goods,
applications, and licenses. NEM Apostille can make these notarizations updatable,
transferable, and conjointly owned.
✓ Messaging applications
✓ Sign-on for “passwordless” applications, using NEM key ID.
✓ Voting applications
✓ Back-end solutions and security for large specialized databases
✓ Fundraising and ICOs
✓ Identification systems
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18. Catapult
• The next generation architecture of NEM/Mijin is codenamed Catapult. It
is a rewrite of NEM in C++ and offers greater speed and scale. Catapult
is a three layered platform, the first of its kind in this respect.
• The first layer is the blockchain server layer and is just for processing
transactions.
• The second layer is the mongoDB and API server layer. This layer will
offer a solution to the scalability problems faced by other blockchains.
• The third layer is the wallet and light client layer. It offers ensures that no
sensitive data ever leaves a user’s computer and is broadcasted over the
internet.
LOOKING AHEAD
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19. Nanowallet
Try It Now!

20. Thank You
contact@nem.io