In this NEO guide, we tried to answer many 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 Shanghai-based company Onchain, which 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 that supports smart contracts, including support for dApps and ICOs. 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.
The “NEO” token is the currency used by applications in the system, similar to Ethereum’s Ether, 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 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.
Can NEO succeed?
There are several reasons why you may 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 signed a number 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 that the company has the backing 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 divided into two parts. The first portion is 50 million tokens, which are 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 its 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 does 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 fork or alternate Blockchain records arising 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.
About 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 get 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.
In brief
In the long term, according to analysts, NEO has the potential to reach the $100 level. That’s a good thing in the long run, and if NEO gets anywhere near Ethereum’s level of success, it’s pretty clear. Finally, let’s briefly examine the advantages of NEO and what it offers us.
Continue Reading: Let’s examine the advantages of NEO
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