All about NEO: what is it and how does it work?
By: Ximena Peinado
Known as the “Chinese Ethereum”, NEO’s cryptocurrency figures as strong competition to the cryptocurrency it resembles. This cryptocurrency has the ability to deploy smart contracts and decentralized applications.
In addition to having a distributed storage system and a stable consensus protocol. Today, the price of this currency fluctuates around 20 US dollars.
The idea for this cryptocurrency started in February 2014 when Erik Zhang and Hongfei Da created Antshares. A platform with the same capabilities of Ethereum and other additional and superior ones in terms of smart contracts and their transactions. On top of that, Neo wants to reach a new level of interoperability and migration capabilities between private and public block chains.
In 2017 Antshares changed its name to NEO and began to have close relationships with the government of China and other Asian governments, in addition to having the support of Microsoft China.
In a January speech this year, Chinese President Xi Jinping declared blockchain technology “a major breakthrough.” The Chinese leader promised that China would not stand by, but rather accelerate the adoption of the blockchain. The support was so important that it consequently caused the price of NEO to increase by 100% in the first weeks of 2020.
Although it is similar in certain ways to other cryptocurrencies, these are the characteristics that make it unique.
- Indivisible: this cryptocurrency is more like traditional goods, so it cannot be transferred in fractions or parts. That is, it is impossible to transfer 0.5 NEO, for example.
- Additional Crypto Asset: To power the network and pay fees on the NEO network, there is the additional crypto asset called GAS. The latter is divisible up to 0.00000001.
- Supports Different Programming Languages: Unlike Ethereum, which only has one coding language, NEO allows developers to use different languages like C #, Java and Go to code smart contracts.
- Open network: any asset can be digitized (real estate, for example).
- Algorithm and fast transactions: The algorithm can be adjusted to have performance close to 1000 transactions per second (TPS) and even reach 10,000 TPS with sufficient optimization. The highest known transaction cap on this blockchain is over 2400 TPS.
- Powerful cryptography: NEO has a cryptographic system that is resistant to quantum computing, so it has a high level of security.
Despite its attractive attributes, NEO is practically unknown in the West, so there is little technical information in English or Spanish. Furthermore, it does not have a high level of decentralization that guarantees more community governance.
However, experts share the opinion that it could be a good option for a long-term investment. Although it is impossible to make 100% reliable and trustworthy predictions, NEO shows convincing signs of a positive year ahead with its focus on technological advancements and its increased scalability and transaction speed.
Beyond the major political events mentioned before, the release of an updated version of NEO 3.0 is expected in this year. This could further increase the popularity of NEO, as a development platform and with the ability to allow other digital currencies to circulate on its technology.
This new version of the platform will be more developer-friendly, optimizing its core architecture. This will help build a powerful and stable smart contract system, capable of providing a comprehensive development environment with the tools and projects in the ecosystem.
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