Cryptocurrency NEO. Overview of the platform, competitors, quotes prospects

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.

NEO Benefits:

  • 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.
  • Smart contracts can be written in any of the following languages: JavaScript, C #, Python. Languages ​​familiar to many, while Ethereum will have to learn a specific Solidity.
  • 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.

Where to buy and how to store NEO

1. Exchanges

Despite the relatively large drop in the price of NEO, it still remains interesting for investors and the delisting of exchanges does not threaten it. Trade turnover is relatively evenly distributed, although after investors disappointed, it shifted slightly towards the Binance exchange, which now accounts for about 34-36%. You can buy NEO only for BTC or USDT. In second place is Bitfinex with 7-8%, where the token is sold for cash US dollar and Japanese yen. HitBTC is on the third place – about 6-7%.

According to CoinMarketCap, the coin is listed on more than 100 exchanges, but it only trades more than 40 in real trading. Of the most exotic pairs with NEO, TKY, NKN, GAS (third-tier cryptocurrencies), Indian rupee, South Korean won and etc. True, the turnover for these pairs is less than 1%, but nevertheless, this is an indicator of multinational interest in the platform.

And if you look at the share of NEO in the turnover of Binance, then the picture here is not rosy – only 17th place. Moreover, the coin is inferior to tokens with much less capitalization.
If NEO is at least stably in the TOP-20, then its accompanying cryptocurrency GAS is not even included in the TOP-100. With its value at a historical maximum of more than 70 dollars. In the USA, today the price is a little over 5 dollars. The United States and more than 50% of the turnover are on the OKEx exchange. Why such a difference in capitalization is difficult to say.

2. Wallets

Again, it is worth recalling that storing cryptocurrency on exchange wallets carries risks. If you lock your account or steal coins, you will not be able to prove whether there was actually a hack. While the safest option is cold and hardware wallets. Unlike one of the EOS competitors, which launched the first wallet only 2 months ago, NEO has more than a dozen of any type: desktop, mobile, hot, hardware.

The main differences between wallets in one category are the following:

  • Functional. For example, the NEON Wallet wallet allows you to get free GAS.
  • Order of setting. In the simplified version (NEO Tracker), the setup does not require knowledge of the code, suitable for beginners. Other versions require more complex full synchronization with NEO.
  • Compatible with browsers and wallet languages.

The general principle of setting up wallets: download the application from the NEO website, enter your password, download Keystore (key storage file), copy the secret key and then proceed according to the individual instructions for the wallet.

NEO Prospects for Investors

“Making the economy smart” was precisely the goal of the Chinese developers. Despite a similar approach to the essence of NEO and Ethereum platforms, their goal is different. Ethereum is designed to create completely diverse applications (most of which are “junk”), the goal of NEO is to integrate the real economy into a virtual environment. Developers even compare NEO and Ethereum with Amazon and Alibaba – the sites seem to be similar, but focused on different markets and have different organizational approaches, due to which the competition between them is minimal. In other words, NEO is able to break through at least in the TOP-5 without displacing Ethereum.

The developers’ ambitions are high – in 2 years they can beat all competitors in terms of capitalization, and the platform has many of them:

  • Ethereum A comparative description of both of these platforms has already been made in general terms.
  • Cardano A fairly new project, the success of which is still difficult to assess – the platform is not fully launched. NEO has an advantage in this case – all pitfalls have been honed for three years.
  • EOS. An ambiguous startup that even indulged in criticism. It is an application development platform where the emphasis is on data security. And the fact that EOS for several months with TOP-15 entered the TOP-5, and NEO, on the contrary, flew into the TOP-15, speaks for itself.
  • Qtum. A fairly serious competitor from the TOP-30, on which Chinese developers are also working. Instead of smart contracts, master contracts are used here, which are analogs of contracts between contractors in the real world. The industry division of master contracts is provided. The platform is designed for business goals and has already taken “the first startups” under its wing.

And here again, it is worth recalling two distinctive features that distinguish NEO from its competitors:

  • Lack of anonymity. OnChain (the controlling company of developers) has access to transaction history and can track any movement of information.
  • Pseudo-centralization. 35 million tokens are officially left with the developers and it is not known how many more tokens can belong to them through subsidiaries.

Both of these points are ambiguous. On the one hand, the developers made it clear that they are aimed at absolute transparency and cooperation with regulators. On the other hand, they reserve the right to violate the rights of network users and the likelihood of using insider information.

On this annual chart of quotes, the instability of the cryptocurrency price is clearly visible:

  • Peak quotes in January are explained by the overall growth of the entire cryptocurrency market.
  • There is no information on the reasons for the sudden collapse on February 6.
  • The next serious collapse of more than 27% at the beginning of March is explained by the fact that on March 3 a serious failure occurred in the network, which should not have happened in principle. It’s not worth it to go into details. But it’s worth adding that on the Internet in mid-August there was information about a new vulnerability that would allow a DoS attack.
  • The last significant growth in late April – early May is not amenable to explanation. Then NEO rose by 15% per day, GAS – by 16%. And the only probable reason is called the purchase of altcoins by a large investor.

Conclusion

The NEO cryptocurrency can be called the “dark horse” of the entire market. Not so long ago, she was in the TOP-6, today she is already in the TOP-15. But given her ups and downs, it is likely that she will regain her lost ground again. And such a rollercoaster is a good opportunity for investors to earn if they catch a wave. The main factors influencing the price remain the general market situation, the ability of developers to quickly eliminate vulnerabilities and technically improve the platform. Therefore, I propose to join LiteForex cryptocurrency traders and test a new tool. Share ideas and strategies in the comments!