In this guide, we tried to answer questions such as what is NEO, what does NEO do, what does NEO offer, how to buy NEO.
What is NEO?
NEO is a cryptocurrency platform developed by Onchain, a Shanghai-based company that started its life as “Antshares” and recently became a brand known as NEO.
It is a platform called “China’s Ethereum” as it provides similar functionality, including support for dApps and ICOs, supporting smart contracts. Similar to Ethereum in some respects, it can be coded in many languages such as JAVA, C/C# and GO, but for this you have to use its own Solidity language with Ethereum.
“NEO” token, similar to Ethereum’s Ether, is the currency used by applications in the system and has a reward system called “GAS”. Holders of NEO receive rewards in the form of GAS and can also be purchased.
In the past, the Chinese government has issued an official warning to its holders that it does not see Bitcoin as a currency:
Bitcoin is a specific virtual product and does not have the same legal status as currency. It cannot and should not be used as money in the market circulation. Institutions and individuals participating in the use of this product should act carefully and bear the associated responsibilities and risks in activities such as Bitcoin investment.
However, NEO received government approval for attending a government-sponsored industry conference that ostensibly bodes well for the company, but could be subject to regulation in the future.
Who’s Behind NEO?
As we mentioned in the introduction, NEO was created by Onchain, a company that started in 2014 and engaged in the design, research and development of Blockchain’s distributed ledger system.
The team is led by founder and main developer Zhang Zhengwen, general secretary Tao Rongqi, as well as other community developers, operators and contributors Da Hongfei.
It is claimed in the community that only 2 people are working on the code for NEO. There has been some controversy surrounding how many developers are working on the project. How many people are working on the project can be clearly seen on the updated website. According to the website, more than 10 developers are currently working on the project.
Why NEO Can Succeed
There are several reasons why you might see NEO succeed. Ethereum has already proven that there is a special need for a platform that enables smart contracts and ICOs, and NEO’s ability to let people code in multiple languages unblocks it. Having to learn a new language to do this opens the way for developers significantly.
NEO has entered into a series of high-profile partnerships. When you see big names associated with a project, there is always trust in that project. NEO has partnered with Bancor, Coindash and Agrello, one of the first countries to ever sign a technical cooperation agreement with NEO. Also, parent company Onchain has an affiliation with Alibaba. Currently, Alibaba is one of the largest e-commerce companies in China and the world.
Along with Fadada and Microsoft, Onchain launched a consortium Blockchain called The Legal Chain. This Blockchain was created to provide digital evidence storage services including digital contracts, intellectual property, e-medical records.
ICOs are a big influence in helping a platform. In particular, the increase in the price of Ethereum at the end of 2017 and the beginning of 2018 can be attributed to the ICO-mania that took place at that time. The NEO platform hosts its own ICOs. The first of these is Red Pulse and this ICO was held on September 10, 2017.
Finally, it is a big horse for the company to have the support of the Chinese government. Even if NEO only succeeds in the east, that’s enough. Because the market in the east is growing day by day.
NEO Token
NEO’s 100 million tokens are split into two parts. The first portion is 50 million tokens proportionally distributed to NEO supporters during the ICO. The second part is 50 million NEO managed by the NEO Council to support the long-term development of NEO. The cryptocurrency, which saw $ 0.03 in the
ICO, moved its price above $ 50 in August 2017 and reached an all-time high. Everyone who participated in NEO’s ICO made a big profit from this rise.
dbFT and GAS
NEO do not use a Proof of Work lag like Ethereum and Bitcoin. Instead it uses Delegated Byzantine Fault Tolerance (dbFT).
dbFT provides fast transaction verification times, encourages most attack vectors, and supports a single Blockchain version without the risk of emerging forks or alternate Blockchain records regardless of how much computing power or cryptocurrencies are available. You can find technical details on this in NEO’s White Paper.
NEO holders receive a GAS as a reward for owning NEO. GAS is generated in each new block. The initial total amount of GAS is zero. With the increase of new block production, a total limit of 100 million GAS will be achieved in about 22 years. The interval between each block is about 15-20 seconds, and 2 million blocks are produced in about a year.
Approximately 2 million blocks will be produced each year and the first generation will have 8 GAS per block. There will be a reduction of 1 GAS per block per year, coinciding with the passage of every 2 million blocks.
To buy GAS, you must keep your NEO in a wallet, not an exchange. You can find mobile, desktop and web-based NEO wallets on the official website (here).
In summary
According to analysts, NEO has the potential to reach $100 in the long run. That’s a good thing in the long run, and if NEO gets anywhere near Ethereum’s level of success, it’s pretty clear. Well, finally, let’s briefly examine the advantages of NEO and what it offers us.
Advantages of NEO
Smart Economy
Smart economy is one of the highlights of NEO. It is completely different from what other cryptocurrencies offer, especially Ethereum. The smart economy consists of digital assets, digital identities and smart contracts. Using the smart economy, it will be possible to digitize physical assets on the blockchain. Once digitized, they can stay on the blockchain and enjoy benefits such as decentralized, transparent, reliable and traceable. Anyone can register an asset.
Digital ID
A digital ID is a way to register any organization, individuals or other entity that may have an asset. It is powered by a system known as the Public Key Infrastructure (PKI).
Smart Contracts
To keep the entire infrastructure working, developers can use smart contracts. Unlike Ethereum, creating smart contracts on NEO does not require you to learn a new programming language. This means that any developer can start on the NEO platform and build a smart economy. The ability to use any programming language is done thanks to NEO’s Universal Lightweight Virtual Machine. Also known as NeoVM. The virtual machine offered by the NEO platform is efficient, precise and scalable. So, does that mean there is no need for DApps on this platform? No. NEO also supports DApps development.
GAS
GAS is the most beneficial advantage of the NEO platform. It can be defined as the asset mapping of NEO. So what does that mean? This means that altcoin holders will receive GAS. It is a dividend paid for owning NEO. It is distributed according to a formula. If you have NEO in your wallet, you will receive GAS every day. For example, if you have 100 NEO, you will receive 0.03411 Gas per year. The price of GAS has increased in the last few months, making it an excellent incentive to hold NEO.
Useful Links
- Official Website
- Github
- Coinmarketcap
- Bitcointalk
- Buy NOE
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