What is Neo? (NEO)

The Beginner’s Guide

NEO is a cryptocurrency platform developed by Onchain, a Shanghai-based company, that started its life as “Antshares” and recently became a brand known as NEO.

It is a platform called “China’s Ethereum” because it provides similar functionality, including support for smart contracts, dApps and ICOs. While similar to Ethereum in some ways, it can be encoded in many languages ​​such as JAVA, C / C # and GO, but you have to use its own Solidity language with Ethereum for this.

Similar to Ethereum’s Ether, “NEO” token is the currency used by applications in the system and has a rewarding system called “GAS”. Owners of NEO receive rewards in the form of GAS and can be purchased separately.

In the past, the Chinese government did not see Bitcoin as a currency and issued an official warning to its owners:

Bitcoin is a specific virtual product and does not have the same legal status as a currency. It cannot and should not be used as money in market circulation. Institutions and individuals involved in the use of this product should be careful in activities such as Bitcoin investment and bear the relevant responsibilities and risks.

However, NEO received government approval for attending a government-sponsored industry conference, which seemingly points out good for the company, but may also be subject to future regulations.

Who is Behind NEO?

As we mentioned in the introduction, NEO was created by Onchain, a company that started in 2014 and is engaged in the design, research and development of Blockchain’s distributed ledger system.

The team is led by founder and main developer Zhang Zhengwen, secretary general Tao Rongqi, as well as other community developers, operators and contributors Da Hongfei.

It is claimed that only 2 people are working on the code for NEO in the community. There has been some controversy surrounding how many developers are working on the project. The updated website can clearly see how many people worked on the project. According to the website, more than 10 developers are currently working on the project.

NEO Token

NEO’s 100 million tokens are divided into two parts. The first part is 50 million tokens, which are proportionately distributed to NEO supporters during the ICO. The second part is 50 million NEO managed by the NEO Council to support NEO’s long-term development.

The cryptocurrency, which saw $ 0.03 in its ICO, moved its price to over $ 50 in August 2017, reaching an all-time high. Everyone who participated in NEO’s ICO profited greatly from this rise.

dbFT and GAS

NEO does not use a Proof of Work lagorithm like Ethereum and Bitcoin. Instead, it uses Delegated Byzantine Fault Tolerance (dbFT).

dbFT provides fast transaction verification times. It encourages most attack vectors and supports a single blockchain version, regardless of how much computing power or cryptocurrency is available, without the risk of the resulting fork or alternative blockchain records.

NEO holders receive a GAS as a reward for owning NEO. GAS is generated in each new block. The initial total amount of GAS is zero. With the increase in new block production, a total limit of 100 million GAS will be achieved in approximately 22 years. The interval between each block is about 15-20 seconds, and about 2 million blocks are produced in one year.

About 2 million blocks will be produced each year, and the first generation will have 8 GAS per block. There will be a reduction of 1 GAS per block per year per year, coinciding with the passage of every 2 million blocks.

To buy GAS, you must keep your NEO in a wallet, not an exchange.

Advantages of NEO

1. Smart Economy

The smart economy is one of the highlights of NEO. It is completely different from what other cryptocurrencies have to offer, especially Ethereum. The smart economy consists of digital assets, digital identities and smart contracts. Using the smart economy, it will be possible to digitize physical assets on the blockchain. Once digitized, they can stay on the blockchain and enjoy benefits such as decentralized, transparent, reliable and traceable. Anyone can record an asset.

2. Digital Identity

Digital identity is a way of registering any organization, individuals or other entities that might own an asset. It is powered by a system known as the Public Key Infrastructure (PKI).

3. Smart Contracts

Developers can use smart contracts to keep the entire infrastructure running. Unlike Ethereum, creating smart contracts doesn’t require you to learn a new programming language. This means any developer can start on the NEO platform and build a smart economy. The ability to use any programming language is made thanks to NEO’s Universal Lightweight Virtual Machine. It is also known as NeoVM. The virtual machine offered by the NEO platform is efficient, precise and scalable. Does this mean there is no need for DApps on the platform? No. NEO also supports DApps development.

4. GAS

GAS is the most beneficial advantage of the NEO platform. It can be defined as asset matching. So what does that mean? This means that altcoin holders will get GAS. It is a dividend paid for owning NEO. It is distributed according to a formula. If you have NEO in your wallet, you will receive GAS every day. For example, if you have 100 NEO, you would get 0.03411 Gas per year. The price of GAS has risen in the last few months, making it the perfect incentive to hold NEO.

Stay tuned to SinceCoin to learn more about Bitcoin and cryptocurrencies.

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