NEO is widely considered to be China’s answer to Ethereum. NEO takes advantage of its unique blockchain in order to improve on Ethereum’s network. NEO have defined itself as the distributed network for the smart economy. They define a smart economy as digital assets, plus a digital identity combined with smart contracts.
NEO’s network is built on two tokens. NEO and neoGAS (GAS). NEO tokens were all pre-mined during the genesis event. They have a hard cap of 100 million tokens which are used for block creation, network management, and any consensus requirements. The GAS token is designed to act as fuel for the NEO blockchain and act as a form of security. GAS was not premined and it is designed to be used to allocate resources and maintain the day to day running of the blockchain. It will also be used to reward users maintaining the blockchain. NEO builds on Ethereum’s design to create the economy of the future. In the modern economy, one of the key problems is trust. After all, how can you do business with someone you don’t trust? Both NEO and Ethereum have attempted to solve this problem through smart contracts. If users wish to make an exchange, they first digitize their assets, turning them into NEO.
History of NEO
In 2014, Antshares was founded by Da Hongfei and Erik Zhang. In the following year, it was open-sourced on GitHub and by September 2015, the white paper was released. NEO was officially rebranded from Antshares in June 2017, with the idea of combining the past and the future. The word “neo”, originates from the ancient Greek prefix, “νεο-“, meaning ‘new’, ‘modern’, and ‘young’. The vision of building a “smart economy” was developed along with the rebranding.
In March 2018, NEO’s parent company Onchain distributed 1 Ontology token (ONT) for every 5 NEO held in a user’s wallet. These tokens will be used to vote on system upgrades. It can be used to identity verification mechanisms, and other governance issues on the NEO platform.
What Drives The Price Of NEO?
Like most cryptocurrencies, NEO is fairly volatile. You should expect to see some dramatic ups and downs. NEO is also heavily driven by media attention. When NEO (then antshares) first hit Western headlines there was only a single broker to purchase the altcoin from. This led to a rush to buy it and the price was driven through the roof. Any price rise driven by headlines tends to go through a period of correction as traders engage in profit-taking and the value of the token slips. NEO’s primary user base is in China. This means that the currency is more strongly influenced by news from that region. If you are interested in investing in NEO you will need to keep an eye on developments in China. Also any incoming regulations from the Chinese government must be taken seriously. If NEO does partner with the Chinese authorities you should expect to see a large spike in value.
Risks and Advantages of NEO
Of course, there’s immense risk involved when investing in cryptocurrencies. There are no regulations, no fail-safe, and no real rules. We call it the Wild West of investing for a reason. Though, as adoption increases, things will eventually smooth out. Remember, while there might be a lot of buzz in the media about bitcoin and cryptos, there still isn’t a lot of money involved — at least not by global standards. On top of this, NEO operates in one of the most controlling nations in the world. One advantage of the NEO platform is that the Chinese government has embraced it as part of their five-year blockchain plan whilst banning other crypto currencies. This level of control has the capacity to alienate the platform from the west.
How to Buy NEO Coin
Buying NEO cryptocurrency using fiat currency isn’t widely supported. However, one can exchange it for other cryptocurrencies like BTC, LTC or ETH. NEO is currently listed on more than 40 exchanges globally. Traders can trade it with BTC, USDT, ETH and rarely even fiat currency like Euro or Indian Rupees. Top exchanges include Bittrex, Bitfinex, Cryptopia, and more.
Perhaps the best way to buy the NEO cryptocurrency is to buy it via CoinSwitch. CoinSwitch will actively help you make the right decision by providing the prices for NEO on the crypto exchanges it’s sold in, all at one place. It supports more than 140 coins and 45,000 pairs of cryptocurrencies. You can choose whichever pair you want with your NEO token. CoinSwitch will facilitate the comparison in various exchanges. You need not create or rely on an NEO wallet specific to the exchanges. Instead, all transactions can happen to and from your very own private wallets.
Reasons to Invest in NEO
1) NEO Chinese Ethereum Substitute:
Chinese economy is a dominant and growing market that is primed for innovation in the financial-tech (FinTech) sector. One of the key barriers in Ethereum penetrating the Chinese market is the language barrier. As Most of Ethereum development and market exposure has occurred in the west. A Chinese home grown ‘Ethereum like’ platform can gain explosive adoption within China. If it develops within the established business norms, culture and regulations of the country.
2) Business Friendly Programming Language Support Chinese Tech:
Developers can interact with the NEO network in programming languages they are already familiar with. This is a reduction in development costs for businesses on the NEO network, bringing down the barriers to entry
3) Company Support:
NEO has managed to spark the interests of large tech giants. Microsoft Azure has partnered with NEO on a competition, also known as developer bounties. The purpose of this is to attract developers to the platform. Any milestones that the NEO network achieves are likely to draw the attention of other tech giants within China.
What is the Future of NEO?
The NEO coin is not a minable currency, unlike its counterparts, so NEO mining is not possible. 100 million NEO tokens were launched in the beginning, and that’s all that’ll ever be in existence. The circulating supply is currently 65 million tokens, which is 65% of the total maximum.
As of June 2018, the market cap stands at approximately 3.5 billion USD. The individual price of NEO coins has ranged from $0.18 in September 2016 to its current value of $54.46.
Features of NEO
It has been clear since the initial launch date of NEO that there are certain functions which have been attributed to its value. Included in those key features is:
NEOFS – This allows for decentralised storage, much like a peer-to-peer Dropbox.
NEOX – This is the system that facilitates execution and operation across numerous blockchains.
NEOQ – This is the lattice-based cryptographic process that formulates problems that quantum computers cannot answer.
NEO Contract – This is the process whereby smart contracts are created in a scalable environment.
Delegated Byzantine Fault Tolerance (DBFT) algorithm – This is a straightforward consensus mechanism that allows up to 10,000 transactions a second.
Is NEO worth an investment?
NEO is, along with EOS and TRON, one of Ethereum’s strongest challengers to rank the best and most successful dApp platform. Compared to Ethereum, NEO allows developers to use (almost) any common programming language instead of learning a new one.
On the other hand, NEO can only be classified as a direct competitor of Ethereum to a limited extent. The clear focus of the project is on the Chinese market. Due to its Chinese origin, NEO already has great support in China. Since the Chinese market is huge. Accordingly, the potential is also very large. China has a long tradition of favouring local technology companies over foreign ones. China could pursue this approach further and prefer Chinese blockchain start-ups such as NEO and Onchain.
There have been many rumours in the past that NEO and Onchain are being tested by the Chinese government. It looks promising that the Onchain technology and NEO will one day be integrated by Chinese companies. This could mean a broad acceptance of NEO in China, which should drive up the NEO price significantly.
NEO is definitely worth investing in as far as cryptocurrency goes. With the opportunities to develop platforms and dApps similar to Ethereum, the sky is truly the limit. For those who are looking for a secure and reliable cryptocurrency, NEO is definitely an option to look into.