NEO cryptocurrency: the essence of the platform, advantages and disadvantages, mining NEO. How to buy NEO, wallet review. Analysis of competitors and prospects of cryptocurrency
The NEO cryptocurrency is called Ethereum’s main competitor. Although both of these platforms for creating applications have a similar purpose, their goals are fundamentally different. The NEO platform is a platform for combining virtual and real economies, where there is no question of decentralization and anonymity, and the emphasis is on security. Despite sharp ups and downs, NEO remains an attractive tool to make money with LiteForex. Read about what NEO is, what are its differences from other similar platforms, what are its prospects, read on.
NEO – Ethereum Chinese Killer?
Not so long ago, the LiteForex cryptocurrency tools arsenal was replenished with several more pairs with the participation of NEO. NEO is called the Chinese Ethereum, although they are very different in platform structure and implemented an information exchange approach. You can even say that they are designed for different tasks, but with an explanation of their idea, the NEO developers still overdid it. If the tasks of Ethereum are understandable, then in NEO there are many difficulties that will confuse an uninitiated person. Take, for example, the fact that the platform has two cryptocurrencies – NEO and GAS. What for? About it below. Not long ago, a member of the top 10 by market capitalization CoinMarketCap ( coinmarketcap.Com) the coin rolled back to 15th place. Why it happened, what the platform is, and how to make money with it using LiteForex, read on.
NEO – A Smart Economy Distributed Network
NEO (neo.org) is a decentralized platform for creating applications, which from the very beginning was conceived as the main competitor of Ethereum, solving most of its problems. The Vitalik Buterin platform appeared in 2013 and already in 2015, she held her one of the most successful crowdsales. This prompted two Chinese developers (Da Hong Fei and Eric Zhang) to create their own analog. Initially, the project was called AntShares and its goal was to combine virtual and real economies. Most likely, it was assumed that, on the basis of the platform, real corporations will create their own virtual counterparts that will facilitate the interweaving (complementarity) of real and virtual cash flows.
In China, AntShares quickly gained popularity, because it was decided to conduct a complete rebranding of the startup. It seems that the developers themselves did not expect such success and decided to take the project more seriously. All technical documentation was rewritten, blockchain nodes were updated, a large-scale ICO was conducted – in June 2017, NEO appeared. One of the reasons for rebranding is that AntShares was designed for China and had poor marketing support. At a minimum, there was a need to translate documents into European languages.
What is GAS? NEO is a platform where two currencies (cryptocurrencies) are an asset: NEO and GAS. NEO is an indivisible coin, a user cannot buy fewer tokens than one, but the system has various kinds of commissions and rewards. And GAS copes with this role:
- NEO allows the buyer to get a share in the blockchain, the right to vote when making a decision. In addition, NEO allows you to vote for representatives and receive in the form of dividends part of the commission paid by network members.
- GAS is the fuel of the system. In this cryptocurrency, fees are paid for writing data to the blockchain, various fees for using the platform systems, etc.
Why such difficulties is a question exclusively for developers who nevertheless promised that NEO will become divisible after updates.
- The scalability issue that Ethereum is only trying to deal with has been resolved. NEO can process up to 1000 transactions per second, which is several tens of times faster. According to the developers, it is quite possible to reach a speed of 10 thousand transactions per second in the future.
- Focus on business and regulation. Regulators of the PRC do not particularly welcome anonymity because orientation to China primarily meant openness. “NEO’s goal is to serve the real economy, so we welcome regulation,” one of the developers will say later. Openness NEO is a pass to the USA and Europe, where such projects are treated much more loyally. Ethereum prioritizes anonymity.
- Lower transaction fees.
Someone calls dual-currency an advantage, but what it is, there is no sensible answer. Also, the developers call the advantage of the “NeoQS Anti-Quantum Cryptographic Mechanism” – protection against hacking by modern computing processors. But only in practice, while the operability of this mechanism was not possible to verify.
The number of NEO and GAS tokens is limited to 100 million, the issued number of NEO in free circulation is 65 million. Cryptocurrency does not have mining, because here the developers decided to be original. Instead of the usual methods of validation ( consensus algorithms ) of PoW, PoS or DPoS, the Delegated Byzantine Fault Tolerance method is implemented.