NEM (XEM) is set to be the world’s most secure, scalable and eventually most popular smart contract platform in the world. The statement seems far-fetched given the dominance Ethereum currently shows in the field. However, the recent announcement by NEM development team on the NEM Catapult (Mijin V.2) blockchain may have all the right ingredient for success.
The coin first announced of the release of Catapult way back in 2015, keeping the NEM community in darkness for over two and a half years. The wait is finally over as the announcement on Medium indicated the beta release will be available to some community members, partners and other willing customers. This is purposed to be done in 3 phases;
- Catapult Developer Preview and SDK release
- Evaluation release of Catapult Core Engine
- Dual-licensing of Catapult in both Open Source and Commercial licenses
NEM has however been afflicted and affected by the recent DAO heist on Coincheck with over $500 million worth of XEM was stolen by unknown hackers. This is one of the main reasons NEM Catapult is needed to prevent such a heist. The exchange has gone on record to claim that they will recover the coins and disburse then to the rightful wallets. They however need to retrieve the private key to access the funds. This caused a fall of over 35% in price for the coin in the last quarter.
So how exactly is NEM aiming to out-compete Ethereum as the top smart contract blockchain?
NEM vs Ethereum
Before looking at the advantages NEM has over Ethereum it is key to understand the issues facing Ethereum and NEM. We will then explain how exactly Minjin v.2 will solve these isssues.
Ethereum is one of the revolutionary technological advancements in this day and age. The coin currently ranks as the second largest coin after Bitcoin in terms of market capitalization. The blockchain has had a strong rise in price and rapid adoption since its inception. Currently, hundreds of tokens have been created on the smart contract technology due to its simplicity and ease of use.
Ethereum can be compared to the Android OS, which gives the developer a free and easy platform to create mobile apps. However, these two platforms face the same problem, SECURITY. Ethereum is also relatively slow in carrying out transactions with about 15 tx/second. Ethereum also faces a scalability problem.
While NEM fairs better in the speed of transactions and scalability. However, the problem of security haunts it as much as it does Ethereum hence the need for the Catapult. It’s crucial to mention that the Catapult will be the core NEM blockchain once completed and tested. How then will the Catapult overpower Ethereum to be the go-to smart contract blockchain to build and develop decentralized apps (dApps)?
3 features of NEM Catapult that will change the game.
These are the three unique features of the NEM Catapult that will change how we use smart contract technology on blockchains.
- Aggregated transactions
By creating an Escrow, the Catapult will allow users to merge multiple transfers to multiple parties automatically. This prevents theft of goods or payment to either party. For example when trading currencies peer-to-peer, you both put your desired amounts into the built in escrow. Then the amounts are exchanged to both parties preventing one party from running off with the payment. In such a system if the transaction goes through, both parties get their respective currencies. If it fails, the currencies are reimbursed to both parties. A first of its kind in the blockchain industry.
If the transaction is facilitated by an exchange by helping to connect the buyers and sellers, they will also receive their fees from the escrow. This is referred to in the Catapult whitepaper as the ‘Trustless Decentralized Swap’.
- Multilevel Multi-signature accounts
This feature ameliorates the security protocols and the account recovery features. Every transaction carried out (except on hardware wallets) is to be passed through a Fraud artificial intelligence (FAI) software. This ensures that each and every XEM transaction will be verified before being completed. This will also prevent fraud in the cryptomarket through checking of bank cards (debit and credit) before verifying the transaction.
Currently, most of the fellas who bought cryptocoins way back during inception at the start of this decade complain of not being able to access their funds. The nested multi-sig account recovery is here to change that. In case you lose your password or cannot access your wallet, the system allows you to access funds through trusted approvals. Get signatures from trusted backups, family and friends, which you can then use to access your funds.
This can also be applied to businesses to confirm their shipment processes. Each level of shipment is recorded at intervals on the blockchain in intervals.
- Layered Architecture
The NEM Catapult system will function in 4 major layers independently. The layered architecture ensures that no level will stall due to interference by another level. This is a unique feature that will allow quick development to a layer in case of bugs while the rest continue to function smoothly. This is also the first time a blockchain has created such a network.
Once the NEM Catapult beta testing is completed it will be available to all users in the world, providing a far much superior network to Ethereum. So hold on to your coins because it’s only a matter of time before NEM hits $1 and replace Ethereum as the world’s most popular smart contracts platform.