NEO is a platform utilizing distributed ledger technology for the creation of smart contracts and decentralized applications. The platform was previously known as Antshares and was the first open source blockchain in China.
NEO aims to provide asset transfer capabilities for non-digital assets by maximizing the power of smart contracts.
NEO has four specific use cases. One, digital assets on the platform will have the protection of the law by employing virtual certificates.
Two, NEO aims at creating digital identities of organizations, persons, and information and employing multiple factors to authenticate access. Such as fingerprints, facial and voice recognition among others.
Three, the platform will accommodate various programming languages in the development of smart contracts. The Neo Virtual Machine (NeoVM) allows for precise scaling and concurrency.
Four, the NEO blockchain is focused on the development of decentralized applications such as decentralized cryptocurrency exchanges and Artificial Intelligence-supported legal smart contracts.
How The Two Native Tokens On The NEO Platform Function
The NEO platform has two native virtual currency tokens, NEO and GAS. The two tokens differ significantly in their usage.
The NEO token forms the investment aspect on the NEO platform. The token is a hard cap of 100 million tokens which can be used for network management and changes. However, the NEO token, unlike other virtual currencies, like Bitcoin, cannot be subdivided into smaller units.
It’s because the platform developers view the NEO token as a share which can only be a whole number. For example, if one NEO token costs $100, you have to have $100 to purchase one NEO token. But with other coins like Bitcoin, if one Bitcoin cost $100 and you only have $20, you can buy a fraction of the currency.
The GAS token can be subdivided into smaller units and is used to fuel operations such as running decentralized applications among other activities on the NEO blockchain.
History of NEO
The platform was born in 2014 as AntShares. Its founders were Da Hongfei and Erik Zhang who later became the founders of OnChain. On June 2017, AntShares changed to NEO.
Early this year, NEO’s founding company, OnChain, supplied another token, Ontology (ONT), which it indicated can be used as a voting power when the NEO blockchain needs to be upgraded or to solve management issues on the platform. Each ONT token was exchanged for five NEO tokens.
During the creation of the genesis block, 100,000,000 NEO tokens were created with 50 percent being sold to investors. 15 million of the remaining 50,000,000 will be released from a smart contract each year to support developments on the platform.
For the consensus algorithm, the NEO blockchain uses a delegated Byzantine Fault Tolerance algorithm which is capable of accommodating 10 thousand transactions per second. By using this type of algorithm, the NEO platform cannot be split into two different chains or forked.
With the delegated Byzantine Fault Tolerance consensus algorithm, the platform has no specific nodes used for validating transactions. The nodes are randomly selected.
NEO’s Future Plans
NEO is also home to NEST, a smart fund utilizing smart contracts on the NEO platform. The smart fund seeks to eliminate the risks and inefficiencies inherent in traditional fund intermediaries.
Qlink is another project utilizing the power of the NEO platform to decentralize the mobile network. The project aims at enabling the renting of network bandwidth and being rewarded with QLC tokens.
The smart economy nature of the NEO blockchain has enabled the protection of creative works through a project called Zeepin.
Additionally, the NEO platform is being used to power a cryptocurrency exchange that combines the qualities of a centralized exchange with that of a decentralized exchange.
Learn More About NEO
For more information on NEO, read our latest news roundup on the Chinese blockchain project.
For those interested in NEO from the investment side, you’ll want to direct your attention to our NEO price prediction and technical analysis guide (always do your own research before investing). If you’re ready to buy or trade for NEO you can follow our guide on buying through Binance (recommended), or use this guide for the Bittrex exchange.