NEM's hybrid blockchain, potential as an enterprise solution

Although the momentum for using blockchain is increasing in the industrial world, blockchain can be roughly divided into "public types" which are open to the public and "private types" which are for internal use.

Each of them has its own unique challenges, namely hurdles for adoption in the company (company product). In these circumstances, the NEM hybrid blockchain is expected to make up for the shortcomings of the two and harness their strengths.

Challenges in leveraging blockchain in enterprises

First of all, the challenges to public networks are often security concerns, high usage costs, and a lack of privacy and confidentiality.

Especially in the case of companies, there are many cases where they cannot be hired because of concerns about the risk of information leakage. Another risk is that in the unlikely event that 51% of the participants are dominated by hostile organizations, the cheat block cannot be removed.

On the other hand, as a matter of personal networking, it was shown that the small number of participants in many projects was a weakness.

In a private chain that is managed centrally by the company, it is possible that the administrator will give preferential treatment to the founder, such as increasing usage costs as the scale of the network grows.

Concerns about these risks can make it difficult for participants to gather, resulting in a number of fragmented private networks that can be less convenient and more expensive.

As you can see, both types of blockchain have challenges, and several companies are trying to solve them.

EY increases the challenge of the public chain

The three largest accounting firms in the world, EY (Earnst & Young), suggest ways to fix the public chain problem.

The company's Ethereum-based "Nightfall tools" have adopted a technology called "zero knowledge proof" that enhances confidentiality to address public network flaws.

Zero knowledge proof is a method of exchange that proves that the content is correct without providing confidential information such as personal information to other parties. By adopting this, even if you use a public blockchain, you can do business between companies without disclosing the data content.

NEM hybrid chain solution

The cryptocurrency (virtual currency) NEM (NEM) blockchain launches a hybrid platform in which private and public chains complement each other.

Nem will be doing a major update in December 2008, and a new "Symbol (XYM)" chain will be born.

The main features of "Symbols" are as follows.

Both private chains and public chains

Symbols are compatible with both private and public chains, allowing you to take advantage of both and cover up your weaknesses.

Designed with interoperability in mind, users can store their official ecosystem on a private chain and communicate freely with the public chain as a decentralized information center. It is hoped that the environment will be open but very safe.

Additionally, the Nem API ensures seamless integration with existing enterprise systems, other networks, and the blockchain.

Decentralized

The Symbol public chain is a completely decentralized ledger, using harvesting mechanisms (creating new blocks and rewarding), token rewards, and the latest Proof of Stake Plus (PoS +) consensus. Keep nodes actively supporting the network.

All Symbol code is fully open source and transparent.

Can post encrypted messages on transactions

Easily add encrypted messages to your transactions, both public and private.

Transactions can be seen by third parties, but message content is protected by the same hash that protects the blockchain and can only be read with the signature of the recipient.

In addition to these features, Symbol is more robust and faster against network errors and attacks.

With this feature, Symbol will be a solution for various purposes such as peer-to-peer international payments, tracking of valuables, proof of credibility of works of art, and provision of a CBDC (Central Bank Digital Currency) platform. Expected.

The NEM (NEM) blockchain adoption case

Nem is building a suitable framework for token issuance, including recent adoption cases such as the Central Bank of Lithuania Issued Digital Currency (CBDC).

In particular, the new blockchain symbols are equipped with a number of useful functions for issuing and managing security tokens, enabling data protection and comprehensive compliance with securities laws.