NEO

NEO
-3.96 % (24hr)

$ 5.9055750455

❝ Neo is a blockchain based smart contracts platform very similar to Ethereum ❞
Market Cap

$ 383.9M

Current Supply

$ 100M

Max Supply

$ 100M

24hr Volume

98.57M

Proof

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website

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NEO also called Chinese Ethereum is a blockchain and a smart contract platform. Neo was formally called Antshares buy in 2017 was rebranded as Neo. Neo is at forefront of new generation of Blockchain as a service platforms (BAAS). Neo use case are very similar to ethereum use cases and some of the key use case NEO is looking to solve include

1. Building a DAPP ecosystem

2. A platform for ICOs

3.A smart contract platform 

NEO project was started by a chinese company called Oncchain which has been in developing blockchains and distributed ledgers for businesses since 2014. 

Neo uses DBFT consensus mechanism and as a developer you can write smart contracts in multiple languages like javascript, python, C++


 

Key Features of NEO

Support for Digital Assets 

NEO evolved from Antshares and as such Antshares  built Digital assets to drive trust and bridge real world assets. NEO uses blockchain technology to make digital assets decentralized, safer, trustworthy ,auditable and traceable.

Support for Smart Contracts 

NEO supports smart contracts on the platform. For people who do not know what smart contracts are ; they are essentially programmable contracts which can be executed on a blockchain. NEO provides smart contract support on the platform. Unlike Ethereum Neo provides multi language support for writing smart contracts. You can write smart contracts in python, javascript or C++.

Scalability using distributed storage protocol.

 Neo claims to be much more scalable than Ethereum. NeoFS uses a distributed storage protocol that uses distributed has table technology which lowers latency, reduces block confirmation times and increases throughput.

NeoX: Crosschain Interoperability

NeoX is analogous to Atomic Swaps as a result it helps direct swapping of tokens without the requirement of exchanges so NeoX will allow for transaction of crypto assets across blockchains. It can also result in creating smart contracts which work across blockchains and will make interchain transactions seamless.

DBFT Consensus mechanism

NEO uses DBFT which  Delegated Byzantine fault tolerance algorithm for generating consensus. The algorithm works if at-least 2/3rd of the nodes are honest. 

The version of BFT algorithm by  NEO features  2 blockchain participants: Professional Node Operators (i.e. Bookkeeping Nodes) and the NEO Users. Each are given different controls in the voting process to determine election and approval. Here is quote by NEO founder on DBFT 

dBFT’s on-chain voting process dynamically votes in/out transaction validators and allows for universal consensus mechanism on public/permissionless and private/permissioned blockchains.

“Specialized bookkeeping nodes” achieve consensus in a dBFT blockchain thanks to “delegated voting.” Two-thirds approval is needed among nodes to approve a new version of the blockchain. This system, proponents say, protects against forking events, radical changes to the implementation of a blockchain system that can undermine participant confidence.

“After investigating and studying the crypto-industry and blockchain technologies for several years, we came to the conclusion that the delegated Byzantine Fault Tolerance alternative (or dBFT) is best suited for such a system,” Erik Iz, co-founder and core developer at Antshares, stated. “It provides swift transaction verification times, de-incentivises most attack vectors and upholds a single blockchain version with no risk of forks or alternative blockchain records emerging – regardless of how much computing power, or coins an attacker possesses.


Key Use Cases and applications of NEO Platform

1.CrowdFunding aka ICOs and token sales 

2. Peer to Peer financing aka p2p lending 

3. Trade finance/Supply Chan finance 

4. Financial Contracts storage and authentication

5. Identity management and identity solutions 

6. Decentralized exchanges , stocks , share transfer, commodity transfer enabling exchange of multiple asset classes

7. Credit point management 

Understanding NEO Shares 

As discussed in the overview NEO uses a concept of shares as a blockchain assets. Unlike ethereum which has mineable currency called ethers which are used for transactions as well as platform fee. NEO differentiates between core blockchain asset and transaction asset on the paltform. NEO share or coins are the core blockchain assets. NEO produce dividend in terms of another asset GAS which are required for transactions and payment of fees on the platform

All the NEO were pre-mined in the genesis block and were distributed as per the below plan

1. Total NEO Mined ate genesis block : 100,000,000 shares or NEOs

2. Early Supporters and funders get : 10 million shares or NEOS

3. First Phase ICO : 17 million NEOs

4. Second phase ICO : 23 million NEOs

5.Use for AntShares team and support future development : 50 million NEOs

Some Properties of NEO Shares or NEO Coins

Whole Number is how NEO shareswork

NEO wallet only supports whole number coins so if you are transferring your coins to NEO wallet and the exchange deducts some fees and you end up sending NEOs which are not a whole number the decimal portion will vanish.

Here is an illustration on how you might lose your NEO while transfering to your NEO wallet 

  • Amount of NEO bought on Exchange: 30 NEO
  • Binance Fee:  0.25 NEO
  • Tra 30 - 0.25 = 29.75  NEO
  • Amount Received in Wallet: 29 NEO

So you end up losing about 0.75 NEOs due to rounding.

NEO Shares Generate dividend

NEO Shares generate dividend in the form of GAS. GAS is generated in proportion to the NEO you hold in your wallet so it is analogous to the dividend you get for holding NEOs . GAS is required for paying for transactions in the NEO ecosystem.

NEO Coins and currency on the NEO platform

NEO has 2 kind of assets on the blokchain NEO coin and GAS.NEO essentially grants you shares in the form of NEO tokens and you can earn a dividend on these NEO tokens by keeping them in the form of GAS.

Role of NEO Coins

1. Acts as an election bookeeper

2. Kind of Shares which generates GAS as dividend 

3. Gives right to vote on various NEO ecosystem issues 

Role of  GAS

1. Helps pay services charges and platform fees

2. Token for all kind of fees on the platform 

3.  Bookkeeper Nominee Deposit as Collateral

Here is infographic by Reddit user @Encephalomagna

Comparison of NEO and GAS

1. NEO and GAS are both capped at 100 million each

2. NEO tokens represent ownership in NEO ecosystem  and you get dividend in form of GAS

3. GAS  tokens are created as a reward for blockchain confirmation  current rate is 8 GAS per blockchain and this will keep reducing .

4. GAS tokens are used to pay transaction costs on the network.

5. NEO is indivisible while GAS can be divided.

History and founders of NEO:

Da Hongfei is the person behind the creation of NEO which aims to develop a smart economy. It was invented in the year 2014 and become operational in 2015.

NEO Versus Ethereum

NEO Key Data 

Algorithm: DBFT (Delegated Byzantine Fault Tolerance)
Market Cap: 4,808,466,000 USD
Proof: Proof of Stake (PoS)
Total supply: 100,000,000 NEO
Circulating Supply: 65,000,000 NEO
Block-time: Nearly 18 seconds

How to buy NEO

You ca eas

Best NEO Exchanges:

· Bittrex

· Bitfinex

· Binance

· HitBTC

· Poloneix

· Coin Switch

Best NEO Wallets:

· NEO GUI (Desktop Wallet)

· NEON Wallet (Desktop Wallet)

· NEO CLI (Desktop Wallet)

· NEO Tracker (Web Wallet)

· NEO Wallet (Web Wallet)

· Ledger Nano S (Hardware Wallet)

· ANSY (Paper Wallet)

Key Competitors of NEO:

1. Ethereum

2. Lisk

3.Cardano

4. Stratis