What Is Neo (NEO)?
China’s first-ever blockchain, Neo, is an open-source platform founded in 2014. It rebranded itself in 2017. Earlier, it was known as Antshares.
Neo claims itself to be a “rapidly growing and developing” ecosystem that aims to lay the foundation of the next generation of the internet. Unlike other blockchains, Neo is trying to do everything at once. Neo is often called “Chinese Ethereum”; however, it is working for regulators and regulatory protocols of other big countries too.
How Does Neo Work?
Neo is one of the “Earliest Public Blockchains” that are still following the roadmap it set out. The end goal of Neo is to develop a technology for real-world use. Neo developers
Neo is called “Chinese Ethereum” because it is similar to Ethereum in some ways. Neo, just like Ethereum, works on Smart Contract. Smart Contracts have various use-cases like coding collateral loans or creating licensing agreements. But, in more ways than not, Neo is different than Ethereum; let’s see how:
How Is NEO Different Than Ethereum?
In a clever marketing move, Neo does not market itself as just a smart contract chain but as a “Smart Economy Chain”. Neo is different from Ethereum in the way that it has a few unique features: Oracles, File Storage System, and Digital Identity solutions. All these together comprise Digitized assets. Digitized assets work on the concept that digital assets can be linked to real-world objects.
These unique features of Neo take it a step forward to the goal of a smart economy, to make the blockchain world “a better and more comprehensive representation of the real world.”
Delegated Byzantine Fault Tolerance: Consensus Mechanism For Neo
Neo uses the Delegated Byzantine Fault Tolerance consensus mechanism, which is often confusing for many people. Let’s understand what it is.
Neo claims that the dBFT mechanism is inspired by the Practical Byzantine Fault Tolerance algorithm; according to the estimation, it is said that the blockchain is capable of processing thousands of transactions per second.
The consensus mechanism has some similarities with delegated proof-of-stake. However, there are some key differences.
In order to ensure the majority of members agree on the decision on the blockchain, developers have found a solution. Delegated Byzantine Fault Tolerance is one such solution. The Neo token holders can participate in governance protocol and vote for delegators; these delegators are trusted people. A random delegate is selected to verify the next block during each block. It does not end there; to approve the block, two-thirds of delegates are required to verify the block.
This practice is exercised to prevent malicious actors from disrupting the smooth functioning of the network.
Who Are the Founders of Neo?
Da Hongfei and Erik Zhang co-founded the Neo blockchain and currently act as the chairmen of the Neo Foundation.
Da Hongfei believes that the internet is a noble invention, but it has many flaws, such as no control of users over their own data. The blockchain covers this drawback and serves many other purposes, which will eventually make it more mainstream.
Erik Zhang is the mind behind the Delegated Byzantine Fault Tolerance algorithm, which aims to eliminate the bad actors or untrustworthy participants from the blockchain’s operations.
In addition, Erik also acts as the main developer for the Neo network and plays a significant role in developing the project’s next iteration in infrastructure, Neo 3.0.
What Is Neo 3.0?
Neo actually migrated to a new version of the blockchain. Neo N3 has architectural updates and works slightly differently than Neo N3. The team is in the process of transferring assets and apps to the new blockchain, Neo N3. This migration is actually the “largest asset migration” in history.
Both the blockchains will still be functional; however, the Neo foundation will only be working on updates on Neo N3.
Native Oracle, Neo File storage, and Neo Name service are among the various updates on the Neo N3.
Why Is Neo Unique?
In addition to various unique features of the Neo blockchain discussed above, one is the smart contract blockchain is constantly developing itself, ensuring that the platform can handle the sudden increase in demand and is future proof.
The latest iteration of the project, Neo 3.0, successfully secures the network and allows a greater number of transactions per second to be processed.
Like Vechain, Neo chain has two native tokens: GAS and NEO. NEO acts as a utility token and allows holders to take part in governance protocols of the platform, while GAS is used for paying transaction fees on the network.
Just Like Neo, some other blockchain projects also run on a development fund similar to Neo. Launched in 2019, EcoBoost is an initiative that offers “full life-cycle support for high-potential projects” – including grants, promotion on social media, and technical support.
What Is The Current Supply Of NEO?
The circulation supply of NEO was recorded to be 70.5 million at the time of writing. However, the total supply of the token is 100 million. All these 100 million NEO tokens were generated at the time of blockchain, and none of them are mined.
The tokens are divided in a ratio of 1:1. Half of these are split among the developers and the NEO council, while half of them go to participants in a token sale. Besides, the platform also aims to invest these funds in other blockchain protocols supported by the organization.
On every new block generated, a GAS is generated for 20 seconds. The creation of tokens is reducing every year, and it is expected that the total 100 million tokens will take around 22 years to enter into circulation.
Where To Buy Neo (NEO)?
Many exchanges support the trading of Neo(NEO). Binance, Poloniex, and HitBTC are among the popular exchanges where people prefer to buy Neo. However, many platforms also do not support the trading for NEO, such as Coinbase.
Price Analysis Of NEO Coin
In the early phases of NEO Coin, the masses weren’t very convinced with it. However, slowly the coin was successful in building trust among people. Eventually, it emerged as one of the leading cryptocurrencies. Last year, its price skyrocketed. However, the price of NEO majorly dropped because of the massive sell-off.
Neo Price Prediction
At the time of writing, the price of NEO stands at $20.22, 4.95 % down in the past 24 hours.
Wallet Investor predicts the long-term increase in the price of NEO Coin; by 2027, it is expected to reach $129.502. The revenue is expected to reach around +538.57% with a 5-year investment.
Another price prediction platform, Digital Coin Price, predicts the price of NEO to touch the mark of $296.31 by the end of 2025.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.