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 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.
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 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.
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.
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
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
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
So you end up losing about 0.75 NEOs due to rounding.
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 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.
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
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
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.
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.
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
You ca eas
· Coin Switch
· 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)