Quick Facts

Approximate Market Cap$1,928,483,770 
Year Established2014
FounderDa Hongfei, Erik Zhan
Symbol/AbbreviationNEO
UtilityAsset

Neo competes with Ethereum in the same applicative fields. However, it takes a considerably more opinionated position.

NEO defines the smart economy as a mix of digital assets, digital identities, and smart contracts. When these three components operate effectively, they create a smart economy.

Neo wishes to encourage the conversion of conventional assets to digital assets. These assets would be decentralized, and their transfer would be handled by a smart contract.

What is Neo – Definition

Neo is a blockchain application platform that is open source and decentralized. The NEO token is the primary cryptocurrency that powers the Neo blockchain. It may be used for holding, sending, spending, and staking.

Except for the Neo coin, the platform is also used to operate other cryptocurrencies and dApps.

The general public cannot mine Neo. Mining is restricted to a small group of consensus nodes, which fuel the Neo network’s rising transactions.

Users use Gas to pay for transactions on the Neo blockchain. The majority of transactions, though, are free due to a designed “system fee reduction” of 10 Gas per transaction.

Pros and Cons

Pros

  • Has its own ecosystem
  • Enables application for digital identity
  • Simpler programming

Cons

  • Centralized
  • Not adopted by the West
  • Requires ID verification

The History

Since its first release, Neo has undergone a number of significant changes, including its name.

Da Hongfei and Erik Zhang established Antshares in 2014. The next year, it was open-sourced on GitHub. The white paper was published in September 2015.

AntShares was later renamed Neo in 2017. The 2017 makeover coincided with the platform’s version 2.0. The term “Neo” comes from the Greek word for “new,” “modern,” and “youth.” Along with the rebranding, the idea of creating a “smart economy” was established.

N3, or Version 3.0, will be released in 2021.

How Neo Works

The Neo feature set focuses on tools that enable developers to quickly launch and grow smart contract applications on the Neo network.

When users want to trade their assets, they must first digitize them and convert them to NEO. The smart contract is then created and kept on the Neo decentralized blockchain. The deal is then carried out in accordance with the contract’s requirements. This implies that the entire transaction is completed without any direct involvement from either side.

As its consensus method, Neo employs a one-of-a-kind governance system, a Delegated Byzantine Fault Tolerant (dBFT). It uses a real-time voting method to select which computers providing the service can produce its next block on the Neo blockchain.

Advantages & Disadvantages

Advantages

Smart economy

Neo is vastly different from what other cryptocurrencies, particularly Ethereum, have to offer. Digital assets, digital identities, and smart contracts comprise its smart economy.

Digital identity

Any business, individual, or another unit that owns an asset can apply for digital identity. It is driven by Neo’s Public Key Infrastructure system (PKI).

Smart contracts

Unlike Ethereum, establishing smart contracts on NEO does not need the acquisition of a new programming language.

Disadvantages

Highly centralized

The NEO Foundation manages six of the eight consensus nodes and selects any applicants who may serve as consensus nodes.

Market adoption

NEO’s Chinese roots have rendered it dislikable to a Western, English-speaking audience. Because a sizable portion of the blockchain and crypto enthusiast community resides in the West, this can present significant challenges to adoption.

Neo in the Global Crypto Market

The Genesis Block produced a total of 100 million Neo. In 2016, 50 million Neo were sold to early investors in an ICO that garnered $4.65 million USD. The remaining 50 million Neo remained locked within a smart contract.

Each year, a maximum of 15 million Neo tokens are released. Those tokens support the long-term strategic goals of the Neo design team.

There is 70.5 million NEO in circulation out of an overall supply of 100 million. Every year, the number of tokens produced decreases. It is predicted that it will take 22 years for the whole quantity of 100 million tokens to reach circulation.

FAQ

Is it possible to use Neo anonymously?

Any attempt at anonymity will be jeopardized by the process of purchasing tokens, which often includes an online exchange. Exchanges require ID verification.

Can Neo be used as actual money in some way?

It serves very few functions outside of the NEO network. It may be traded for other cryptocurrencies on exchanges, but it is better utilized on the network.

Is Neo a deflationary currency?

Yes, NEO is a deflationary currency. All of the NEO coins were produced at the start. There will be no further increases in supply after all of the coins have been placed into circulation.