NEO Blockchain vs Ethereum: A Comparative Analysis
What is NEO? Everything you need to know about the Cryptocurrency NEO
The main goal of the NEO blockchain is to combine digital identities, digital assets and smart contracts to create a smart economy. Neo is China’s first open-source blockchain and has unique features that set it apart in the cryptocurrency space.
Unlike other digital currencies, it is indivisible. For example, you cannot transfer 0.2 or 0.5 NEO. GAS is the fuel of cryptocurrency. Since NEO is indivisible, users turn to GAS tokens to pay for network fees. It is divisible up to 0.00000001.
Users also prefer NEO as it supports multiple programming languages like C++, C# and Java. Cryptocurrency also allows you to create digitized assets. It is designed to build smart contracts decentralized applications (dApps). This makes it one of the pioneers of the potential foundations for the next-generation Internet.
Table of Contents
What is NEO Blocochain?
How does NEO work?
Invest in NEO
The best NEO wallets
What are the pros and cons of NEO?
The future of NEO
What is NEO?
NEO is a blockchain-based network that enables smart contracts and digital assets and has unique use cases suitable for the smart economy.
This blockchain platform offers a peer-to-peer exchange, digitizes assets, supports your programming language and creates smart contracts.
Is NEO Token a kind of money?
NEO tokens can be seen as a kind of money. The network is intended to enable the digitization of physical assets. At the same time, users can then use NEO to buy and sell digital or physical assets.
However, to some extent, NEO does not currently qualify as money. There is a limited number of trading pairs, which makes converting to other currencies a bit tedious. Also, many jurisdictions have yet to fully adopt the concept of the smart economy. But it will likely have more benefits than fiat currencies in the future.
With the NEO network, all assets can be digitized and digital identity promoted. Due to decentralization, the currency will be useful across international borders.
Is it legally recognized?
NEO is not legal tender in any nation. But citizens of many nations have the legal right to use it. China is against cryptocurrency but prefers this token. Its unique digital identity ensures a high level of transparency, making the network compliant with the law. In this regard, NEO will face limited litigation, which is essential for the stability of any currency.
What do people use NEO for?
NEO allows users to register, buy and sell a variety of assets. You can also exchange and distribute the token. The distributed network allows users to associate physical assets such as homes with an equivalent digital avatar on the platform, making it ideal for empowering the digital economy. Users looking to protect these assets also find them valuable, as validated digital identity is an important security feature. Many people are currently using NEO to pay for a variety of products and services around the world.
Which merchants accept NEO?
Snel.com offers web hosting services. It offers convenient and reliable Smart Dedicated and Cloud VPS services. The simplicity of the services sets the trader apart from the crowd.
NOWPayments offers credible payment gateways. It has excellent libraries that save time for the developer. If you want a payment gateway for NEO and many other cryptocurrencies, this company can offer you the service.
Guarda Wallet has apps developed for iOS and Android-supported devices.
You can store and manage multiple cryptocurrencies on the platform. You can pay for the service with NEO.
COIN.HOST is a privacy-focused cryptocurrency hosting service that has been available to the Bitcoin community since 2011. Currently, they have over 20,000 customers around the world.
This retailer is best known as an AR/VR platform for gaming, business, advertising and entertainment. It operates the geolocated private property.
How does NEO work?
NEO describes itself as a new network for the “smart economy”. Similar to Ethereum, NEO is a decentralized, open-source blockchain platform for smart contracts and dApps. According to the developers at NEO, the smart economy is made up of digital assets, digital identities and smart contracts
How it all began – The Story of NEO
Da Hongfei and Erik Zhang founded Antshares in 2014. The following year, it was open-sourced by the founders on GitHub and the whitepaper was published in September of the same year. On June 17, the open-source network officially rebranded from Antshares to NEO, and the name change showed the company’s focus on building a “smart economy.”
Onchain, the parent company of the NEO network, distributed the Ontology Token (ONT) in March 2018. Each ONT was intended for 5 NEO. The tokens are used to resolve issues related to system upgrades, digital identity verification, and other network governance issues.
The NEO network uses blockchain technology and is based on a decentralized consensus mechanism called Byzantine fault-tolerant.
In the Genesis block, the team created 100 million NEO. They sold 50 million NEO to the original investors. To solve the expected gradual increase in demand for the currency, the NEO team locked the remaining 50 into a smart contract. Every year, the system unlocks 15 million NEO, and the NEO development team uses the funds to fund long-term development goals.
According to the official information on the company’s website, the founders Da Hongfei and Erik Zhan are still in charge of the network. Hongfei is the current chairman of the foundation. The other founder, Erik Zhang, is the main developer. The NEO team consists of the Founders, Director of Enterprise Adoption, Core Developers, NEO Global Development, Advisors and Community Contributors.
NEO Mining – How are new coins created?
As we have seen, 100 million NEO tokens were released at the beginning of the network. 50 million have been withheld, and a fraction of that is released regularly.
GAS, on the other hand, is generated after verifying the blocks in the blockchain. By 2019, each block produced 8 GAS. But this has been declining every year since, and will continue to be so until all GAS produced hits the 100 million mark.
Because of Delegated Byzantine Fault Tolerance OR dBFT, you can choose the right wallet and start generating GAS whether you have a staking pool or not.
Supply – How many coins are available, what if they run out?
At the time of writing this post, CoinMarketCap states that the circulating NEO supply is 70,538,831 and the total supply is 100 million NEO. The maximum supply is 100 million NEO and the market cap is around 1.5 million USD. The market price of NEO is $21.55.
The price of NEO fluctuated. In early 2020, NEO was selling for $16.60. After that, Bitcoin dragged the market down and the price reached $4.50. At the moment it has risen again.
The surge may mislead into believing that NEO is a deflationary currency. Investors prefer to invest in such currencies, which may be the reason why many of them hold these tokens.
Technically, however, NEO is based on inflation, and that’s why many others are issuing them as well. Once all 100 million tokens are mined, no more tokens will be generated on the network. The scarcity should stabilize the value of the currency.
Decentralization – what does that mean?
Decentralization is the peer-to-peer means of transferring money and digital assets without third-party interference.
The NEO network’s consensus mechanism ensures that at least two-thirds of the community makes important decisions. Also, each NEO holder has voting rights, which gives many users the ability to manage the project. The token is a global currency and is designed to support the transition to the next generation of innovation.
Invest in NEO
Many people currently view NEO as an investment due to its relatively stable price. In February the price was $16.60, today it is over $21. However, it decreased significantly a few months ago and then increased again.
Why should you invest?
The main reason many people invest in NEO is to grow their finances. Those who bought the token when its value was extremely low can sell it today and make more money. You can also invest in the token if you want to save your money in a decentralized system that you can access at any time without unnecessary regulations. However, to achieve your goal, you should use an investment strategy that suits your unique needs.
Price and Volatility – Why is the price so volatile?
Price volatility is synonymous with the cryptocurrency market. From our chart above, in early 2020, the price of NEO dropped significantly from around $16 to $4 in a matter of weeks. Bitcoin’s dominance and the COVID-19 pandemic were some of the factors responsible for the fluctuation.
Volatility carries certain risks, but experienced traders can use it to make profits. Given the lack of tools that can efficiently predict the future price of a cryptocurrency, you should reduce risk by investing an amount you can afford to lose.
Where to buy NEO?
You can buy NEO from reliable sellers to get the best value for your money. Working with a reliable broker can help you protect your hard-earned money from criminals looking to steal it. There are many recommended brokers. Here are my favourites:
eToro is a social multi-brokerage trading platform headquartered in Cyprus. It has simplified the buying and selling of cryptocurrencies, including NEO. Mediation is innovative, secure and transparent.
Plus500 is customer centric and offers the convenience of buying and selling crypto online. The UK Financial Conduct Authority and other recognized regulators in various parts of the world regulate the trader.
FXTB, also known as ForexTB, presents its services online. The website is available in all leading languages and almost anyone can read its simple instructions and buy NEO without anyone needing any help. FXTB is law-abiding and adheres to the principles of transparency, security and fairness.
The best NEO wallets
As with any other valuable asset, you need to keep your NEO in a safe place. Depending on your requirements, you may also need to consider accessibility and affordability when choosing the best digital wallet .
What are wallets?
A wallet is software that can receive and store your digital currencies and tokens. They can also help you with management and transfer.
What types of wallets are there?
The cryptocurrency industry uses many different types of wallets. Read on to learn about their unique characteristics and choose the most suitable one.
Web wallets are the storage facilities built into the online exchange and brokerage platforms. They are convenient and cheap. If you buy NEO from your broker, they can deposit the money into their wallet for free. But these wallets are not the best as hackers can attack them.
Mobile wallets are identical to web wallets, except that they are designed to be used on mobile devices such as phones and tablets. Because of the portability feature, these wallets come in handy. They are also relatively safe. If you take good care of the devices and install the right security protocols, you might not need to worry about the security risk. However, if you use your phone online, hackers can access the wallet and steal your wealth.
Some of the best mobile wallets for NEO are:
Desktop wallets are used on desktops. You are more secure when you install security enhancements like 2FA. However, they are the most impractical because desktops are immobile.
Some desktop wallets you can use are:
These wallets are the safest. These are physical devices backed with software that stores your NEO offline and connects to the internet when a transaction is made. But they are expensive and new users can sometimes have trouble using them.
Some of the best hardware wallets are:
● Ledger Nano X
● LedgerNano S .
Some wallets can be linked to increased security and convenience. For example:
● Ledger Nano S + Neon Wallet
Keeping the wallet on an exchange, the possible advantages and disadvantages
Storing your NEO on a cryptocurrency exchange is convenient. You can log in and manage or transfer your tokens as you wish. It’s often incredibly affordable too. However, hackers can access your funds if the exchange does not offer advanced security features due to the centralized structure.
What are the pros and cons of NEO?
The cryptocurrency NEO has a number of advantages, but also disadvantages.
Benefits of NEO
The advantages of NEO include fast transactions and a clear focus on the smart economy. Digital identities and digital assets are important topics for the future. Also, NEO is supported by the Chinese government. The Delegated Byzantine Fault Tolerance in turn ensures security and stability. The network is also not dependent on mining as it uses Proof-of-Stake. Smart contracts can be programmed in different languages.
Disadvantages of NEO
On the other hand, the disadvantages of NEO include strong competition from Ethereum, Cardano, EOS and other smart contract platforms. Compared to these platforms, NEO’s developer community is quite small. At the same time, there is a risk that problems will also arise from the interference of the Chinese government.
The future of NEO Blockchain
NEO Blockchain is one of the promising smart contract platforms. It is questionable whether NEO will prevail against competitors such as Ethereum, Cardano or EOS. However, it is quite possible that NEO will establish itself in China and form a counterpoint to other smart contract platforms based in non-Asian countries.
With its focus on digital identities and digital assets, NEO is addressing an important topic. From a technical point of view, the project is very well positioned and the support from the Chinese government is another advantage. If the Chinese government continues to regulate the crypto market, this will certainly have a negative impact on NEO.
1. What is the purpose of NEO?
NEO Blockchain was created to support a smart economy.
2. What unique blockchain solutions does the NEO project offer?
The project has a NEO token that allows users to manage the community. It also includes GAS, a token that supports smart contracts.
3. How does NEO prevent hard forks?
The NEO network uses the consensus mechanism, which requires two-thirds of the community to approve major decisions.
4. When the NEO blockchain requires voting for important decisions, who is entitled to vote? Every NEO holder has voting rights.
5. The Chinese government is against cryptocurrency. How has NEO been successful in the market?
The NEO team has established a close working relationship with the government.
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