Introduction to NEMwww.nem.io

•NEM(cryptocurrency)?

•NEM at a Glance

•NEM Key Features

•NEM Use Cases?

•Looking Ahead

OUTLINE

234~1415161

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

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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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: moon4

MAIN FUNCTIONS

MosaicsA 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

Mosaic Description and Levy• Assets have a personalized descriptionExample: 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. 6

MAIN FUNCTIONS

Bill BobAlimoney

Alice

levy

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

Billc

oin

Billcoin

Billcoin

Billcoin

Billcoin

Billcoin

Alimoney may only be included in transactions between the issuer and

the user.

Non-transferable asset

AliceDavid

Chuck Bill

Bob

Alimon

ey

Alimoney Alimoney

Alimoney

MAIN FUNCTIONS

Mosaic SupplyYou 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. 8

MAIN FUNCTIONS

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. 9

MAIN FUNCTIONS

Account M

(Multisig Budget)

Account 1

(Alice)

Account 2

(Bob)

Account 3

(Chuck)

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

10Account

M(Multisig Budget)

Account 1

(Alice)

Account 2

(Bob)

Account 3

(Chuck)

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

11Account

4(Davie)

Account 1

(Alice)

Account 2

(Bob)

Account 3

(Chuck)

Account M

(Multisig Budget)

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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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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NanoWalletNEM 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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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 OwnTransfer

Notarizations 3rd Party Certification15

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   16

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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Thank You

contact@nem.io