Neo is known as a Cryptocurrency powered by a decentralized platform known as a Blockchain. Following the rebrand from Antshares, it has become one of the leading cryptocurrencies in the market. In 2015 after the project commenced, the protocol was to create smart contracts to convert real assets to digital assets.
Neo originates from the Greek words newness, youth and uniqueness.
History of NEO
Neo was formerly trading as Antshares. Onchain was the developers of Antshares and Da Hongfei was the founder of Antshares as well as the CEO of Onchain. Antshares is partnered with three major companies such as Wings, Microsoft and Alibaba, which has proven to be successful in the upcoming years since 2014. Antshares has created their own Blockchain focusing on e-commerce, Crowdfunding and high tech Blockchain technology. They have also been presented to the Chinese Government as part of a competition to get as many people involved as possible.
In 2017, following the rebrand, Neo has now emerged and has made a lot of ground in the Cryptocurrency space. Now known as the ‘Ethereum of China’ Neo has become an open source code product.
This Ethereum-based Blockchain has now become the “China public Blockchain”. Built on the same principles, Neo also operates on smart contracts and have expanded to digitizing real assets also including other aspects of assets such as financial contracts, credit points, promissory notes, security paper etc. Da Hongfei, also the founder of Neo, has made themselves available through social media and other public networks to market the ICO (Initial Coin Offering). It has proven to be a success as so many people started to invest in this new brand.
Now known as one of the 6 best cryptocurrencies in the world alongside Litecoin, Bitcoin, Ripple and XRP, makes it safe for investors to put their money in. Neo is based on the same proof-of-work algorithm as Bitcoin adding on the smart contracts like Ethereum that enforces the middleman-free platform when trading. Neo has worked on fixing the errors that arose in the Ethereum Blockchain that made them vulnerable to hackers.
The CEO of NEO, Tony Tao, has also founded a new Blockchain-based investment called Nestfund. The white paper of this concept states that it is a project that will reward hackers with a global bounty reward should they find any bugs in the Blockchain. Nestfund is built on the same Blockchain as Neo; thus, this concept is essential to the security of the Neo Blockchain.
Neo VS Ethereum
Neo and Ethereum have very similar features, but they also differ in a few ways. Neo is more popularly known in the Middle East where it was mostly only promoted in Chinese until recently, where it was introduced to the world in English.
The main difference between Neo and Ethereum is the Blockchain on which Neo is built is written in multiple languages, which makes it easy for developers to build on this Blockchain, promoting the growth of the Blockchain. Ethereum is built on more advanced languages or codes such as Python and Go, where Neo is built on languages such as C# and Java more freely used in programming. Neo is also able to finalize an amount of 1000 transactions per second on the Blockchain with a future prospect of 10 000 transactions per second.
Neo and Gas
Following the rebrand of Antshares, Neo was created with two components. Neo is the Cryptocurrency and Gas are created as the dividends. Neo and Gas total the network with 100 million tokens each, which can never be exceeded. The minimum unit for Neo is 1 Neo, whereas Gas can be divided into smaller amounts. Neo has reserved 50 million tokens for the development of the Neo system; the other half has been distributed to the participants that funded the ICO.
Every new block in the Blockchain will generate 8 Gas tokens and it will decrease as the amounts of blocks increase. For every 2 million generated blocks the token amount will decrease by 1 token. It is forecasted that by 2039 Gas will reach its limit. Gas will be used to pay fees in the network, for the creation of smart contracts, and the use of computing resources. The amount will be determined by the number of resources used.
What is Neo Smart Contracts?
A smart contract is an electronic contract that verifies and enforces negotiation of an agreement. It is programmed to follow the progress of the contract, as soon as it has matured and reached the prospected requirements the payments or exchange of goods will commence.
Neo smart contracts are powered by the Neo Virtual machine. The way it operates, includes data storage, timestamps and randomness.
Storage refers to the keeping of important documents such as your property purchasing documents, or vehicle registration documents. It makes it a very safe method as only the person with the access to the contract can retrieve this information.
Timestamps can be used with the payment of salaries or monthly payments. Each block in the Blockchain is numbered and can be referenced. Every 15 seconds a new number is generated, making the creation of the smart contract random.
The future of Neo
The prospects of Neo have done particularly well, although the Chinese Government was not totally blown away by it. With Neo growing and expanding, it is certain that the Chinese authorities will partner and support this Cryptocurrency in future after the conferences with Da Hongfei. The current cost of this Cryptocurrency (November 2017) is $26.75 and the current value of the market at $1.45 billion. The latest Gas currency pricing is at $24.23 and the value is over $180 million.
The only difficulty Neo will have is if ICOs are not able to use this platform, they might stagnate as they will only be focusing on creating Dapps and other Blockchain based technologies. However, it can be a very positive outcome for Neo once the Chinese government buy-in to the idea of ICOs on the platform.