May 4, 2018
NEM is a cryptocurrency, inspired by Bitcoin and an alt-coin called NXT. It isn’t compatible with Bitcoin, however. For this reason it needs its own wallet, and that wallet for your computer is named Nanowallet*.
Nanowallet has some advantages over the mobile phone NEM Wallet version for your iPhone or Android. For one thing, Nanowallet can allow you to spend special Mosaics, which are a token on the NEM blockchain. The main token of the NEM blockchain is called XEM (many currencies and cryptocurrencies are represented on exchanges by 3 letter abbreviations that start with ‘X’, e.g. XBT is Bitcoin). Other NEM Mosaics include COMSA “CMS” and Loyalcoin “LYL”. Anyone can purchase a unique Namespace in NEM, and create their own Mosaic cryptocurrency with certain customizations. A beginner would not do this, although they may purchase and spend these other tokens, by storing them in Nanowallet using their NEM address.
Another advantage of Nanowallet is the Universal Client version can be used with the optional Trezor hardware wallet for Bitcoin. It’s an expensive little USB device that helps you store cryptocurrency safely by protecting your private keys from snoops and spooks. Thus any NEM compatible token, like LYL, can be stored securely on a Trezor.
1. To use Nanowallet, you first download it, and unzip the file to your Documents folder. Don’t store it in Downloads, in case you clean-up your folder at some point later, forgetting your wallet is stored there. I’ll be writing from a Windows perspective, but Mac and Linux users may find this guide helpful too.
2. Create a Wallet. Write down your password, back up your .wlt NEM wallet file, AND click Account : Primary then enter your password to write down or print your Private Key which you will store in a secure location. Do no store the private key online, or someone with remote access to your machine may grab it and be able to steal all of your tokens with it. This is what happened to Coincheck, the Japanese cryptocurrency exchange which was robbed of a half a billion dollars worth of XEM! Consider enabling the multi-signature option using a NEM address you’ve created and backed up from a different location and computer or mobile phone.
“Account” will also show you your “N” Address, Importance Score which relates to delegated Harvesting described below, and your Vested balance also related to Harvesting.
3. Mining? No, NEM uses Harvesting, but not unless you have had over 10,000XEM stored in your Nanowallet for more than about a week to vest it. If you are lucky enough to have this, definitely click Services, Manage delegated account, then unlock and activate harvesting. It’s like Bitcoin mining, but doesn’t suck electricity because of NEM’s innovative Proof Of Importance (POI) algorithm.
4. (Optional) Install NEM Wallet on your smart phone, and restore your wallet from the private key number that you wrote down. You’ll see the same wallet address starting with ‘N’ if you were successful.
5. Have a NEM Mosaic to send (that isn’t XEM)? As with XEM you send it to the long wallet address that starts with the letter ‘N’.
“Explorer” at the top of Nanowallet shows you existing Mosaics in your wallet already. XEM appears as nem:xem. COMSA appears as comsa:cms, and Loyalcoin appears as appsolutely:lyl.
This first step isn’t hard, click Send at the top of Nanowallet.
Paste the recipient wallet’s ‘N’ address into the To: field. Ignore Amount and Message fields, and click the Mosaic transfer checkbox. Nanowallet will automatically fill in the Amount as 1XEM. Select the Currency you wish to send, and click Attach.
Remove nem:xem (unless you want to send additional XEM coins at the same time).
Under the name of your Mosaic, enter the amount. Your amount in “Total:” will be the correct value being sent, as Amount is typically listed in millionths of the token. CMS and LYL won’t have a Levy. Type your password underneath, and click Send. You’ll see a success or error message in the top right corner and hear a ding if successful.
If the mobile wallet is used, you’ll see only the 1XEM that arrived with a Mosaic, but be unable to send the Mosaic without opening the wallet in Nanowallet on a computer. In Nanowallet, you can click on the Mosaic transaction listed in the Dashboard, and see details including recipient address, amount of each token sent, and the block in the chain that the transaction was included in.
It’s clear that Nanowallet is an important program to have if someone intends on using the NEM blockchain and its related tokens. If you have suggested user guides, or updates to the information in this blog post, please leave a comment.
*Note that “Nano” is a different cryptocurrency that isn’t NEM, so I’m not referring to Nano’s wallet.
Historical note: NEM used NIS and NCC for a wallet program in its first years of existence. They required Java 8, and a bit more technical know-how to use, so Nanowallet is an improvement on that early technology. NEM has redeveloped its underlying code into a new language too, making it very business-friendly with a committed development team.
If you found this blog post helpful, you may send a XEM donation to: NALTOX-QADX6H-UHSPWB-3KAN3P-UDVADV-NMQMSY-BIGT