NEO, WHAT IS IT ALL ABOUT
The arrival of cryptocurrency in the world of today has created many debates all around the world, with every one expressing his agreement or disagreement with this innovative tool. Some agreed with it because of the high profitability in it, the security level due to the coding with cryptography, the decentralize nature hence no government control on it, other disagreed with it because of the complete anonymity, the fact that it is not a stable store of value etc., Then if I tell you there is a possibility to merge the two ideas of the old financial system and the cryptocurrency trade system what will you say ? In general that is what NEO achieved. You might ask yourself how is it possible? What is such a powerful tool which could realize that? Or how can such system function? … If you ask yourself such questions then you are on the good page to answer them. Let’s go further into what is NEO.
What is it?
NEO, meaning new or young in Greek, as it name indicates is a new version the cryptocurrency antshares created in 2014 . The developers decided to change the name the unfortune name ANTSHARES into a flurry of fanfare, NEO. Over the past weeks it made a boost of 400% and rocketed among the top 15 of coin market cap. What makes NEO so special is that it takes a different approach from blockckain. It pretends to be the bridge between the old financial system and the cryptocurrency system. It doesn’t really have crypto coin, with smart contracts, certificates, identity and legal compliance. So we may ask ourselves what is the coin that everyone is trading and that makes everyone so much money? Can NEO Become the Biggest Crypto in the World?
We will try to answer all of those questions on the lines below …
How does it function?
NEO uses blockchain, use smart contracts for digital assets to be self-managed, to achieve “smart economy” with a distributed network. The following are the different tools that help in the function of NEO and how they help in that system;
NEO has two native tokens, NEO (abbreviated symbol NEO) and NeoGas (abbreviated symbol GAS). NEO, with a total of 100 million tokens, represents the right to manage the network. The minimum unit of NEO is 1 and tokens cannot be subdivided. GAS is the fuel token for the realization of NEO network resource control, with a maximum total limit of 100 million. The NEO network charges for the operation and storage of tokens and smart contracts.The minimum unit of GAS is 0.00000001.
About 50% of the NEO coins were sold in an early ICO and the rest of the 50% was held by the company itself and will be put in the NEO net after the use of NEO smart contract locked for 1 year to maintain the long-term development of Neo. In fact, they use a really old basket of currencies called fiat. From their whitepaper: “NEO will use fiat as its internal currency.
They use fiat to buy GAS and to execute smart contracts based on the idea of those criticizing cryptocurrency saying that “ money need to be a stable store of value”, hence creating a link between the old financial system and the cryptocurrency trade system. CHART OF EVOLUTION OF NEO OVER THE RECENT MONTHS
- SMART CONTRACTS.
It is a program containing a legal document .A contract is a bunch of conditionals with rules which if violated will be punished by a given penalty. So is quite normal that contracts can be turned into digital. It is programmed such that when a pre-programmed condition is triggered, the smart contract will execute the corresponding contract terms. Smart contracts are still young and not used a lot but in the upcoming years they will be used by almost every company. Briefly, NEO wants to be at the top of the electronic contract of tomorrow and hope that innovating hard in this area, can make it easier for today’s companies to do business on the blockchain.
- DIGITAL ASSETS
They are programmable assets existing as electronic data. In contrary to normal blockchain, with NEO block chains users can circulate different type of assets, trade, register. NEO therefore create a bridge between digital and physical assets through digital identity.
- DIGITAL IDENTITY :
NEO function on the basis of “know your customer”, hence the customers are identified through different methods like fingerprint, facial features, voice, sms and other authentication methods. The more developed system of digital identity system is the PKI (public key infrastructure) X.509 standards. When merging the set of digital identity standards to compatible X.509 level certificate issuance model, will support Web Of Trust point-to-point certificate issuance model.
- Joint accounting model :
NEO uses a joint accounting model which is the combination of the on-chain and off-chain transaction model.
- On-chain transaction is the transaction model used by bitcoin,ethereum,and many other cryptocurrency whereby for every transaction made, it is broadcasts to the whole network, miners verify the transaction if it is certified that there is no trial to double spend the coins somewhere, they put the transaction in a block.
- Off-chain transactions propose to speed up transaction by doing them off the chain and later putting the results of the little transactions in the chain after a set period of time.
Hence, Businesses can take off transactions from the primary chain, with their own verification methods and then pushing them to the main chain.
Now after seeing this we can be asking ourselves with all this, how is NEO so special and different from other cryptocurrency? What makes it a wealth generator? We will see much of it by continuing our way on this article.
- What are the advantages ?;
- Smart contracts make investment on the NEO platform simple and safe.
- NEO and his new blockchain system will make companies and individuals seeking to use NEO for various applications
- NEO is also highly demanded due because of its various applications. Its simplicity and originality make it fit to be used for currency and also for programming with up to 90% of the total programming languages available.
- One of the most important facts is that NEO don’t works on an On-chain mechanism hence no need for mining which is so energy and time expensive.
- NEO doesn’t offer complete anonymity to the users hence preventing illegal activities associated to networks accepting anonymity of users
- It creates a link between digital and physical assets
What makes it a secure tool?
Unlike other cryptocurrencies, NEO doesn’t offer complete anonymity to the users hence preventing illegal activities associated to networks accepting anonymity of users. Also it is programmed using cryptography hence making it very difficult to hack. NEO uses a blockchain different from other ones. It is neither On-chain nor Off-chain but a combination of both hence making it a more secure tool.
Globally we can say that NEO have re-defined cryptocurrency and make it possible for the two group of people defined at the top of the article (Those agreeing and those disagreeing with cryptocurrency) to merge their ideas to create one powerful tool which is NEO. Despite the fact that it is new, it have been recently classified among the TOP 10 of cryptocurrency by COINMARKETCAP hence we can see that NEO have a bright future as the whole world begin to open the eyes on cryptocurrency, its simplicity and transparency makes it a very dangerous tool ready to challenge big cryptocurrencies like Ethereum or Bitcoins.NEO is considered as the chinese ethereum.
Will the value of NEO ever be greater than that of ETHEREUM ?