NEM is based on the philosophical concepts, that arguably served as an inspiration for the Bitcoin’s creation: by implementing the innovative Proof-of-Importance, which distributes awards based not on the sacrificed amount of computational capacity or the size of a user’s stake, but on their actual involvement in the network’s life, NEM seeks to achieve the goals of equality, financial freedom and decentralization, seemingly abandoned by the Bitcoin network, split between several large players and unavailable to take part in by your Average Joe.
Unlike Bitcoin and other mining coins, all NEM would be distributed at the genesis block. NEM stakeholders are its own network nodes which verify the transactions and protect the network following a hybrid of Proof of Stake/ Proof of Importance forging mechanism. This type of distribution eliminates the need to have a mining industry which is an external force that imposes a huge cost to Bitcoin and other POW networks. The computational arm-race is avoided by using the hybrid of Proof of Stake/ Proof of Importance forging mechanism.