China’s new cryptocurrency NEO has gained a lot of coverage in the press, amongst investors, and in the crypto community. We’ll speak on NEO and how its beneficial as a cryptocurrency and its use in and outside of its blockchain
What is NEO?
There is a lot of discussion surrounding NEO and its overall place within the cryptomarket. Due to its complicated history, we can see how Neo has developed into China’s most highest growing cryptocurrencies to date.
NEO began in 2014 by a company called AntShares. It was founded by Erik Zhang and Zong Hongfei. It’s gained its reputation by becoming China’s primary blockchain platform. Because of this, AntShares started to grow in popularity, and the demand for its services started to increase.
In 2016, Erik Zhang and Zong Hongfei created OnChain, which is a venture-incubated company that provides financial services on the blockchain network. By 2017, AntShares rebranded itself as NEO.
OnChain and Neo were created in Shanghai. Recently, there have been multiple incidents of the Chinese government creating strict rules and regulations in regards to cryptocurrency. Fortunately, Neo is willing to cooperate with such strict demands to further aid the Chinese economy.
What is NEO’s System Made Of?
Here are the systems that are supported by NEO:
- NeoFS: A peer-to-peer decentralized storage system.
- NeoX: Allows NEO to be transferred and utilized through different blockchains.
- NeoContract: This helps NEO create smart contracts in high performance, scalable environments that use preexisting and popular code bases (Java, C#, Kotlin, F#).
- NeoQ: A security system that protects the system from getting hacked by quantum computers.
- DBFT Algorithm: This system is used to prevent malicious nodes from making transactions.
Neo is viewed as a “public cloud” and is apart of China’s strategy to create a Blockchain industry leader. They plan to use developers to enhance their ecosystem by utilizing their platform and tools to increase its value.
OnChain is the “private cloud” and is used by large corporations and business franchises. Its main goal is to be the Microsoft of Blockchain. With Neo, the company created a Distributed Networks Architecture (DNA).
DNA can integrate with current networks and businesses, supports applications, and uses cross-chain interoperability.
What’s the Difference Between NEO and Ethereum?
Ethereum uses only one coding language Solidity for coders to create their own smart contracts. However, NEO is a more open source and allows for multiple coding languages (Java, C#, Kotlin, F#, etc.).
This means that NEO has a shorter learning curve and is easier to use and make smart contracts. Coders like NEO because they can easily use their previously known languages to get involved and further participate in NEO’s ecosystem.
What is GAS?
Like Ethereum, NEO uses GAS to help users fund for their smart contracts. The only difference is that NEO uses GAS as a separate token that’s also placed on the crypto exchange market.
8 GAS is created each time an NEO block is generated. As time progresses, the amount of GAS produced by each block is reduced by 1. For instance, in the second year GAS will be reduced to 7. This cycle will continue until there is no more of left of the 100,000,000 GAS maximum token supply.
Thanks to GAS being apart of its network, it increases the demand and increases the more people work within NEO’s network. As a result, the more projects that are created within NEO, the demand for GAS tokens will increase.
Thus, newcomers that are interested in NEO will like its GAS addition as well. It’s simple to use and is faster than Ethereum’s current network. You receive it each time you use NEO which makes it easier for you to participate in its ecosystem.
With the recent growth of NEO, there has been a rapid growth of technology in Asia. Countries such as Japan, Korea, and other nations are starting to become more relevant in the FinTech and the Blockchain Industry.
What does the future hold for NEO? It’s hard to tell and predict it. But the way China’s cryptocurrency is growing, it shows potential benefits for the US as well. People who are in the United States can either invest or code within NEO’s platform.
Are there any questions that you have about NEO?
Feel free to let us know what you think in the comment section.