What is NEO?
Formerly known as Antshares, NEO is a Cryptocurrency which enables development of digital assets, digital identity, and management of these digital assets using smart contracts. With the help of a Byzantine Fault Tolerance mechanism, NEO can support over 10,000 transactions per second. NEO is the first open source digital asset and digital identity platform launched in China.
NEO prides itself as a distributor of network for a smart economy. Da Hongfei launched the project in 2014, but it was not until June 2017 was the name changed from “Antshares’ to NEO. At that time over a hundred million coins were issued. Tokens are staked in NEO, these tokens produce gas tokens which fuel the network and pays for the development of smart contracts within the network.
Unlike most Cryptocurrencies, NEO uses delegated Byzantine Fault Tolerance instead of the proof of work algorithm. NEO does not mine like other cryptocurrencies, it gives users also known as shareholders the power to vote for a blockchain use. A share of NEO represents ownership of a part of the blockchain. As at June 2017 the company had in possession over 50% of all shares in the blockchain.
As of June 2017, a NEO coin was valued at $1. 91, two months later it skyrocketed to $47.58, although it has dropped to $35 dollar, experts still believe that its value will increase because of its Chinese origin. NEO is currently around $109 with a marketcap of $7.7B (at the time of writing).
NEO has been compared to Ethereum which like NEO deals with smart contracts and digital assets.
Features of NEO
- NEO was specially designed to host smart contracts in a decentralized manner
- The blockchain in NEO is fueled by crypto-assets same as Ethereum
- Unlike other cryptocurrencies and digital assets platforms NEO makes use of the ‘Delegated Byzantine Fault Tolerance’.
- NEO is backed by a large community which includes the Chinese government and tech Giants like Microsoft and Alibaba.
- NEO has a digital or crypto-asset called “NEOGas”. These are unique rewards that are paid to NEO investors for owning NEO coins.
- NEO’s blockchain is not divisible and it is made up of only “Whole Numbers”.
- NEO has the capacity to handle over 10,000 transactions and optimization in a second.
- NEO is user-friendly and it also supports tons of programming languages.
- NEO has two crypto tokens or assets, they are; NEO and GAS.
- NEO has a total of 100 million tokens. These tokens are used for block creation, network management, and network changes. There are also a 100 million GAS tokens. These GAS tokens are used for operations such as running smart contracts, decentralized application and as an added incentive for maintaining the blockchain.
- Bitcoins, Litecoins and Ethereum can be exchanged for NEO token.
- NEO has NEOX which is like Litecoin’s atomic swap, this will help people to exchange crypto-assets and token across different blockchain. It also allows for collaborations between blockchains.
- A platform was launched by NEO to offer payment solutions and decentralized exchange.
NEO Terminologies Explained
NEO Gas: These are the only transaction and registration payments made in the blockchain. All companies that desire to register will have to acquire Gas tokens for service fees. The service fees gotten from company registration will be shared with all NEO holders as a reward for owning coins.
Smart Contracts: This word was coined by Nick Szabo. NEO’s smart contract has multiple mainstream programming languages, which means that any developer with knowledge of any popular programming language can code smart contracts.
Decentralized Application (DApps): Decentralized Applications are Artificial intelligence assisted smart contracts and decentralized exchange.
Difference between NEO and other Cryptocurrencies
- NEO has proven to be unique in various ways. In this article, we will try to clearly state the difference between NEO and other smart contract and digital assets platforms.
- Delegated Byzantine Fault Tolerance is one of the unique technological adoptions that sets NEO apart from others smart contracts and digital asset platforms. This technological adoption makes transactions in NEO faster.
- Unlike other cryptocurrencies, NEO is working to become the future of digital assets in the world. NEO’s focus on a smart economy sets it apart from other cryptocurrencies. The smart economy focuses on digital assets, these assets can be sold through smart contracts.
- For NEO to fully focus on smart contracts, there are some technological advancement that must be made for this to happen, some of them include;
- Digital Identity; Digital identity provides anonymity to NEO holders. This will help NEO holders operate on-blockchain, digitizing their assets and issuance of smart contracts anonymously.
- Digital Assets: Smart contracts can become top-notch if flat properties like cars, house, computers, clothes, and food can become digitalized.
- More investors are investing because of NEO’s large community backing.
- From statistics NEO coins are expected to increase in value in a few years time, making more people invest for a long-term benefit.
- With the aid of their digital identity platform, NEO is creating identities of individuals, businesses, and organization in electronic form.
- When using NEO’s smart contracts, programmers do not need to use a new programming language. With just knowledge of Java programming language, they can start code smart contracts immediately.
- A device adopted by NEO called Universal Lightning Machine assures them high certainty, high concurrency and high scalability for smart contracts.
- With the help of delegated Byzantine Fault Tolerance, NEO can handle and optimize over 10,000 transactions per second.
- NEO boasts of being able to handle quantum computing hacks, meaning that NEO has an already developed system called “NEOOS”. This system acts as an anti-quantum mechanism that prevents hacks in the blockchain.
- NEO rewards investor with Gas tokens for owning NEO coins
- Transaction fee for NEO blockchain is free.
- NEO has an independent team and open source developers which work towards its betterment. This team has developed a NEO Wallet, a block scanner and has helped in the translation of various documents.
- NEO’s blockchain takes time before clients can perform two functions simultaneously
- Coins take a longer time to appear when there is an exchange
- When there is a transfer of shares, fractions or part of the shares are lost