What is NEO?
First launched in 2015, this Chinese Blockchain project became the third largest coin by market capitalization after Bitcoin and Ethereum in May 2018. It has been referred to as China’s Ethereum. The project has become so significant that investors even compare NEO to the legendary Silk Road currency that made digital payments a possibility for people in the ancient trading network of Eurasia. Unlike Bitcoin and Ethereum, however, which are both digital currencies that use public blockchains (like the Bitcoin blockchain), NEO is a smart contract network that connects a cryptocurrency with decentralised applications. With smart contracts, you can use currencies such as Bitcoin, Litecoin and even Ethereum, but they all are limited in their capabilities.
What is NEO coin?
NEO coins are the native currency of the Ethereum-like, smart contract-based platform, NEO. These tokens are used to buy services on the platform, although it is not necessary to register to buy services, as you could with Ethereum or Bitcoin. This platform is designed to allow entrepreneurs and freelancers to create and market products, manage relationships, and make it easy to find the right help. They also host numerous applications, which they call “smart contracts.” These contracts can perform functions like recording account balances or making refunds, and they can be programmed by anyone. NEO co-creator William Qu, who also happens to be the brains behind SmartContract.com and OrigamiCoin.
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NEO token transition
The real value for the NEO token (the native cryptocurrency of NEO) comes in the form of coins called GAS, for which holders are rewarded with use of smart contracts on the platform and up to 500 GAS is rewarded for high transaction fees. NEO, which was formerly known as Antshares, was created in 2015 by one of the co-founders of BitCoin China. Due to an undisclosed buyout, BitCoin China left the market and new developers worked on NEO. Unlike Ethereum, it is decentralized and open source. Additionally, the creators of the NEO platform came up with a clever way to manage the growth of the platform by making the currency a not exchangeable for its native Antshares. Instead, users are given “royalty on GAS.
What are the benefits of NEO?
As a smart contract platform, one of the key benefits of NEO is that it brings a very high level of security into an ecosystem that, historically, has suffered from a multitude of security issues. Another feature is the elimination of the usual use of transaction fees. The amount of NEO tokens required to make any transaction is set to zero, and the system automatically calculates the fees. In addition, transaction rates are constantly being monitored and are adjusted to make sure the network runs smoothly. NEO runs a decentralized exchange where users can trade NEO for BTC, USD, EUR, etc. What is the market cap of NEO? The market cap for NEO is $4.9 billion USD as of November 2017. What are the NEO’s specifications?
What is the difference between NEO and Ethereum?
NEO has a more decentralised concept of smart contracts, where developers can make these contracts, or programs, that run on the NEO blockchain. In comparison to Ethereum, the NEO coin (also known as the NEO token) is somewhat centralized, as the NEO team now runs a server (‘node’) that validates all transactions. How is the NEO Project funded? Over the course of four months, almost US$51 million was raised through an ICO which concluded in June this year. In October, NEO has raised another US$30 million through a mix of their own tokens and those of their strategic partners. These financing events are of course linked to the two projects that the blockchain developer is working on: The private version of the web browser 11.11 and the Internet of People. Who’s running NEO?
Conclusion
There are many more features and applications on the NEO platform and there are likely to be many more out as the project develops. If you are thinking about investing in NEO, it is important to remember that it is a real world application for blockchain technology, and not simply an app for the NEO Blockchain, so understand the benefits and drawbacks of investing in NEO before you make an investment decision.