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- 1 The GAS token was designed to pay fees on the NEO blockchain.
- 2 It uses smart contracts to facilitate multiple use cases like digital assets, secure digital identities, etc.
The gas token is the native token of the NEO blockchain. The China-focused platform was built to become the core of the digital economy. As it is a native token, it is used not only to pay the fees for transactions but also to secure digital identities and network usage.
The token also empowers the blockchain. It also provides management rights which include account reconciliation and network parameter changes. The holders of NEO will automatically earn gas for holding the token in the NEO wallet.
History of GAS Token Along With its Utility
Eric Zhang and Da Hong Fei founded the GAS token in 2014. It was launched by the name Antshares. Later, in 2017 it was rebranded as NEO. 100 Million were minted when launched. In an ICO in 2016, 50 Million were sold to investors raising $4.65 Million. The remaining 50 Million is locked into a smart contract.
The GAS token has a market cap of $34.89 Million. It is a utility token with a circulating supply of 10.12 Million
The token is a way of paying for transactions on the NEO blockchain. It enhances the simplicity and increases the efficiency. This token is primarily used to perform transactions. It is used as payment or as the fees charged to carry out any operation on the NEO platform.
It also acts as an investment. The token acts as a reward for NEO holders as the data of the last five years shows that its price is increasing rapidly.
How Does the GAS Platform Work?
The GAS token platform mainly focuses on providing easy access to digital and physical assets by using programs that are permissionless. On this platform, the developers can automate and digitize their asset management using smart contracts. Besides this, the platform also provides varied utility like:
Decentralized Storage: Mechanism indicates a peer-to-peer network with whom data is shared. This is done to strengthen data sharing and storage systems.
One Block Finality: One block finality is provided to confirm the efficient and fast transactions. It is also self-fault tolerant.
Oracle: It is a computable mechanism that can fetch data from various off-chain data. These data are large transactional data that cannot be shared on blockchain.
NEOFs: It is the distributed storage that offers privacy and maximum data scalability.
Poly Network: It is a cross-chain network that is aimed to provide interoperability between different chains.
Neo Name Service and Neo ID: It is a decentralized domain name service for web applications while Neo ID is for decentralized identities.
Advantages and Disadvantages of GAS Token
The token is run on a platform that uses a unique consensus mechanism, Delegated Byzantine Fault Tolerance (dBFT) that has particular requirements. It helps consume fewer resources and is more capable.
The GAS token serves the purpose of managing rights which involves account reconciliation and network parameter changes. It is also used to pay a fee for running the apps on the NEO system. Here are some of its key advantages:
Highly Secure: The token provides high security as it uses unique consensus mechanisms called the Delegated BFT. However, specific requirements need to be met for this.
Transaction Process: The transaction process is very efficient. The platform conducts transactions with speed to increase the centralized exchange and offer decentralized security.
The platform facilitates two types of tokens where GAS is the operational token. It helps fuel smart contracts. The NEO platform also performs fast transactions, increasing the centralized exchange efficiency and providing the security of a decentralized exchange.
There are a few disadvantages associated with it. Firstly, the requirement of minimum balance. A certain amount is needed for maintenance. It also requires the user to give control of their funds to the exchange.
Also, the holders of NEO automatically earn GAS as the staking reward for holding NEO in the NEO wallet.
NEO GUI Wallet is regarded as a good option for storing NEO and GAS tokens. It facilitates ease of use. It also provides the facility of exchanging crypto without creating an account.
Is GAS Token a Good Investment?
GAS Token has been on the rise over the past five years. This leads to growing adoption. So experts estimated that it is a good investment. However, investing in crypto is risky as the market is very volatile, thorough research is highly recommended before investing.
Summary
The GAS token is the cryptocurrency that is used to facilitate transactions and interactions on the NEO blockchain. The coin is transacted on many centralized exchanges, some of them are Upbit and Gate.io.
Saurav Bhattacharjee is in charge of the Broadcast development team of The Coin Republic.
He has been covering the Metaverse and NFT niche for the past 2 years.
With stellar interviews on his portfolio like Nicehash, Paxful, WallstreetWolvesNFT, Bitholla, Totemfi, EOS.io etc. Saurav has spearheaded the NFT SUPERSTARS AWARD and successfully hosted the first award in 2021.
