The key difference between XEM and Bitcoin
If your purpose is to convert XEM to BTC it’s highly recommended to know the difference between these two cryptocurrencies first. Bitcoin is the cryptocurrency which allows to make peer-to-peer transactions without any third party to govern it. The information about every transaction is written into the public blockchain and anybody can see its details, such as the wallet address is that made an exchange and the amount of value sent. Such technology is very powerful as it allows to reduce the cost on the third parties such as banks and other financial institutions. Inspired by bitcoin’s success many other projects have appeared with the same idea, and NEM fueled by XEM currency is one of them.
While Bitcoin production is associated with huge electricity expenditures, XEM doesn’t require it at all. The tokens are distributed among the stakeholders according to the amount they have invested into the project. This is a very important factor to consider if you want to exchange NEM to Bitcoin.
What is Bitcoin mining algorithm?
Before converting BTC to BTG it’s worth to understand how these currencies are obtained.
In order to create the new blocks on the Bitcoin network, special equipment named ASIC resolves computational tasks and gets a reward in cryptocurrency for the work that it does. This is where the name of the algorithm Proof-of-Work (PoW) comes from. The technical name of this algorithm is SHA-256.
The blocks that are linked into one chain are containers for the information about transactions that users make between each other. This information is available for anyone who has access to the internet and thus it helps to eliminate third parties.
As Bitcoin gained popularity and huge companies joined the mining rush purchasing big sets of equipment, it has become unprofitable to mine Bitcoin on the end-user machines.
What is XEM mining algorithm?
XEM cannot be mined as it is issued by the producing company. You can only buy it from the NEM corporation or on an exchange platform via converting BTC to XEM. The mechanism that stands behind XEM issuance is called Proof-of-Importance and the blockchain does not support the creation of smart contracts. It can only be used as a means of exchanging value.
The circulating supply of XEM equals to 8,999,999,999, while its maximum supply equals to emission infinite.
For Bitcoin, the circulating supply equals to 17,722,237, while its maximum supply equals to 21,000,000.