Formerly known as AntShares, NEO is a next-generation economy which is expected to show explosive growth in the coming years. This Chinese Ethereum is a non-profit community-based project that uses digital identity and blockchain technology for managing digital assets using smart contracts and for becoming a distributed network for the smart economy.
The Origin & Source
Founded by CTO Erik Zhang and CEO Da Hongfei of a Shanghai-based blockchain R&D company (OnChain), NEO cryptocurrency commenced in 2014. This project was funded by two crowd-sales that took place in 2015 and was able to raise nearly 505 million dollars. Today, it is known to be the first decentralised, open-source crypto and blockchain platform propelling in China.
It is believed that NEO follows the footsteps of Ethereum. This is the reason that NEO has eventually done its all-time high at $52 ( 2 January 2018) per token in the crypto market, thus proving itself to be the best cryptocurrency to invest in the market.
The Use Cases
According to OnChain, a Smart Economy requires three components:
Digital Assets: Using Smart Contracts, traditional assets can be converted to digital form, which can be decentralised and protected by law, thus making them more trustworthy.
Digital Identity: NEO allows the creation of identification information of entities, individuals and organisations in electronic form, which can be used for multi-factor authentication purposes like voice recognition, facial recognition, fingerprints and so on.
Smart Contracts: Founded by renowned computer scientist and cryptologist, Nick Szabo, Smart contracts help manage agreements among users, works like a software library and also stores information like membership records & domain registration information. However, in NEO, a creator does not need to learn a smart contract language. If a developer is well-versed with any mainstream programming language like C# or Java, they can quickly create Smart Contracts in NEO. NeoVM abbreviated for NEO’s Universal Lightweight Virtual Machine offers high concurrency, high certainty and high scalability for Smart Contracts, thus making NEO the best cryptocurrency to invest.
Difference Between NEO & Ethereum
Although NEO and Ethereum, both are blockchain projects for hosting Smart Contracts in a decentralised manner, there are many dissimilarities between the two.
- NEO is supported by the Chinese government, which is the main reason for its popularity and acceptance. This has also made NEO an open–source public blockchain project. Furthermore, it is backed by giants like WINGS and Alibaba. On the contrary, Ethereum is not supported by any government (nationally or internationally) but is supported by Enterprise Ethereum Alliance (EEA), which speaks volumes about its popularity.
- Ethereum uses a proof-of-stake mechanism which was recently changed from proof-of-work, but NEO is based on delegate Byzantine Fault Tolerant (dBTF) consensus mechanism, which is an advanced version of proof-of-work.
- Smart Contracts in Ethereum require developers to learn a programming language called Solidity, but in NEO, Smart Contracts can be written in any language like C# or Java.
- While Ethereum handles 15 transactions per second, NEO handles 10000 transactions per second.
- NEO produces a particular crypto asset called GAS for fuelling the blockchain, whereas Ethereum uses small units of Ether to fuel the blockchain.
- NEO is targeted at making Smart Economy by digitising the real world assets, but Ethereum is more focused towards becoming the blockchain based supercomputer.
- Ethereum is a famous global enterprise that caters international audience, but NEO is merely available to English audience because of its Chinese roots.
Which currency would do better, is still a question, because both the projects are relatively new and need to deliver their best on the core promises.
For months, NEO cryptocurrency hovered between 0.002BTC and 0.003BTC, but lately, the currency showed astounding progress and jumped to $79.8409. With a current supply of 65 million coins, NEO has become one of the top high volume cryptocurrencies.
Lately, the currency troubles around the world led investors to switch to cryptocurrency as a safe heaven, thus making NEO more popular than ever. In addition to this, NEO team also sent a tweet in early August announcing their partnership with Chinese financial institutions, which created enough hype amongst the investors. Ethereum valuation also made NEO the far East’s powerhouse and the next big thing in the market.
So, if you are also planning to invest in NEO cryptocurrency, make sure you have your NEO address ready for receiving NEO tokens and some other coins for the exchange.