NEM Can Became Centralized After Coincheck Attack

According to the experts, XEM tokens marking mechanism, which is being developed after Coincheck hack, can lead to centralization of NEM
02 February 2018   109

NEM Foundation is developing a mechanism for automatically tracking and marking XEM tokens in order to prevent hacker attacks, similar to the one that the Japanese currency exchange Coincheck recently underwent. Critics are convinced that this will have an extremely negative impact on the ecosystem, depriving XEM tokens of the interchangeability properties and making the network useless from an economic point of view.

The goal of the developers is to mak tokens stolen by hackers useless, the total amount of which is 5% of the total issue. Thus, attackers will not be able to sell them on crypto exchanges, because sites will know that tokens are transferred from an address associated with hackers.

Experts believe that this mechanism is contrary to the idea of ​​decentralization of the network, since the NEM Foundation and the crypto-exchange can distinguish marked tokens from the total mass, as well as decide whether to accept them or not.

The exchanges will be able to claim that a number of XEM tokens are involved in illegal activities, although this may not be true. As a result, XEM will lose the interchangeability property, which is the main characteristic of money.

Such steps by the NEM Foundation indicate centralized control over the blockchain, which contradicts the original concept of technology.

The developers also refused to host the event, stressing that the community does not support this development.

NEM Meetup to be Held in Cordoba, Argentina

NEM is organizing blockchain meetups in Latin America; the Argentina meetup will be held in Cordoba on February 17, 2018
17 February 2018   101

NEM blockchain platform was designed and coded from the ground up for scale and speed. Its consensus mechanism and the Supernode program aim to ensure that NEM’s open, public blockchain can grow without ever compromising throughput or stability.

NEM is currently organizing blockchain meetups in Latin America, and the Argentina meetup will be held in Cordoba on February 17, 2018.

Nem argentina meetup locationMeetup Exact Location

Location: Blas Pascal University, Tte. Gral. Donato Alvarez 380, 5147 Cordoba, Argentina
Time: 10:00 AM to 12:00 AM
Agenda: Mining, Multisignature protection, Domains and Assets Creation, Private and public blockchain for companies

At the moment of press, these are main market parameters of NEM:

Average price: $0,540646
Market cap: $4 865 813 999
24h volume: $30 245 700