NEO Cryptocurrency Review

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What is NEO Cryptocurrency? | A Beginners’ Guide

The term “neo” means new or modified. In a sense, you can think of NEO as the modified Antshares – NEO’s original name.

You can buy NEO on Binance with Bitcoin, Ethereum, or Tether.

GAS is given to NEO holders with the generation of each NEO block. Similar to “ether” with Ethereum, you need it to use the NEO network and suite of services.

NEO is a next generation smart economy platform (formerly Antshares) and means new and young in Greek. NEO has had a monumental rise to fame and most know NEO for its explosive growth. However, when you look under the hood there is a lot to discuss.

Called the “Chinese Ethereum” NEO has a lot of hype but, does it live up to it?

Law as code

First, let’s discuss smart contracts. According to Black’s law dictionary, a contract is: “An agreement, upon sufficient consideration, to do or not to do a particular thing.” Sounds simple right? Contract law is a deep rabbit hole that spans a myriad of offshoots which many dedicate their lives to but there is one key shift in this digital age, the law is now programmed code.

In the US, the ESIGN act passed federally in 2000 which legalized the use of digital signatures as a legally binding construct. In China, a similar contract law and legal use of digital signatures were put on the books in 2007. This means the legal system now has a bridge with the digital realm and opens a plethora of new opportunities for digital contracts.

Meet Smart Contracts – a digital, borderless and trust-less new way for two or more parties to interface.

Contracts govern an agreement between two (or more) individuals and/or parties. If X occurs then Y is provided. If X does not occur, here is Z recourse. This ties in quite nicely with the conditional programming structure in computer science where “if-then-else” expressions can easily be built around traditional contract law in effect making law into code.

If-Then-Else Diagram

Digital keys and signatures are the new pens inking their presence on digital (used to be paper) contracts. Contracts that have now been coded and re-imagined in a new way for the digital age through platforms like NEO.

The NEO system includes:

  • Delegated Byzantine Fault Tolerance (DBFT)algorithm – This is a consensus mechanism (instead of the traditional proof of work/stake) that allows the system to resist the Byzantine Generals problem and maintains consensus even if some nodes bare malicious intentions
  • NeoX – This system will create the ability to execute and operate across various Blockchains
  • NEO Contract – Is the mechanism for creating smart contracts seamlessly in scalable, high performance environments that integrates pre-existing codebases (e.g. C#, VB.Net, F#, Java, Kotlin)
  • NeoFS – This is a service which allows decentralized storage (like a peer to peer Dropbox)
  • NeoQ – A lattice-based cryptographic mechanism which creates problems that cannot be solved by quantum computers and ensuring being quantum-proof

NEO is often called the Ethereum of China, but why?

NEO is positioned as a “public cloud” and is part of a much bigger strategy by the Chinese government in establishing pre-eminence as a Blockchain platform industry leader. They want developers, in general, to use their tools and platform and develop the ecosystem. We are already seeing this with the City of Zion team.

Privately funded OnChain seeks to lead the pack

Voted as a top 50 Fintech Chinese company by KPMG, OnChain is a sleeping giant. If NEO is a public cloud, OnChain is a private cloud being used by corporations and other large establishments. The goal is for OnChain to be the Microsoft or Apple of the Blockchain. They are the first Chinese team to create DNA (Distributed Networks Architecture). DNA supports applications, cross-chain interoperability, and can integrate with traditional business systems and networks.

“Our vision is to make Onchain a truly universal Blockchain framework. Utilizing different plug-in modules, our framework could be applied to a public chain, a consortium chain or even a private chain. Our cross-chain adaptor module, currently under development, creates interoperability among these different chains.”

Da HongFei, co-founder of NEO and OnChain

Other noteworthy partnerships include talks with the Japanese Ministry of Economy, Trade and Industry as well as providing enterprise-grade blockchain powered email for Alibaba’s Ali Cloud.

Why does this matter for NEO?

Eventually, there will interoperability between both NEO and the OnChain networks which will allow unprecedented reach and usage for both networks in tandem.

How is NEO different than Ethereum?

NEO supports many additional code bases (e.g. C#, VB.Net, F#, Java, Kotlin) while Ethereum has its own proprietary language called Solidity, which requires developers to learn that before any development can take place. This means a longer learning curve and barrier to entry which could hinder the number of developers that can enter the ecosystem.

Critiques concerns and weaknesses

NEO essentially has a 100% pre-mine as well as proof of stake model which allows users to derive additional coins (in the form of GAS) by holding them in a wallet. NEO “distributed” coins through a crowdfunding event which allowed people to invest but, NEO still made money from the sale. Since there was no mining and only issuance of tokens this greatly centralizes the distribution.

As mentioned in our previous article, NEO was divided into two batches: 50 million which were sold via crowdfunding (and given to early contributors) while 50 were reserved to be “managed” by the NEO Council.

The “lock out” period ended on October 16, 2020 releasing funds for use for development and other purposes:

  • 10 million NEO go to NEO developers and NEO Council members
  • 10 million NEO as incentives for developers in the NEO ecosystem
  • 15 million NEO invested in other auxiliary Blockchain projects used by NEO
  • 15 million NEO earmarked for “contingencies”

Some may feel that these multiple millions of NEO are in the hands of the developers could cause dumping on the market and other actions that might affect the price or morale of the economy.

Also, some of the areas mentioned above are a bit vague and could be hard to distinguish if funds are being used to those exact parameters. (Which may end up changing as the project evolves.)

In addition, as with all cryptocurrency initiatives, there must be a network effect of adoption for anything substantive to happen long term. This has not fully taken place yet on a developer use level with NEO despite all the hype and potential offered by this initiative.

Strengths and Opportunities for NEO

NEO has a sister company OnChain that’s already a “made man” in terms of the financial services industry. It is also currently working with the Chinese and Japanese government along with large corporations including Alibaba.

NEO is considered more of an open-source public cloud model which will be separate from OnChain but can also be interconnected in terms of the cross chain functionality as we will see more of with NeoX.

GAS rewards you for holding NEO

Similar to “ether” with Ethereum operating as fuel for using the ecosystem, GAS serves a similar function. The difference with NEO is that GAS was given its own special status as a token. (Similar to Steemit tokens, STEEM and Steem Dollars, SBD).

GAS is a Proof of Stake like incentive generated with each new NEO block. The release will entail 8 GAS per block reduce by 1 each year (So year 2 will be 7 GAS, year 3, 6 and so on). This will go until 100 million GAS are produced after which there will be no further GAS produced.

NEO produces GAS for holders which is needed to use the NEO network and suite of services. This would presumably create buying pressure (demand) as its used for the ecosystem which is good for holders. The more projects using the NEO network the more demand for GAS tokens.

So, is NEO a “next-generation smart economy”?

That has yet to be determined. We know that digital signatures and as a result, contracts are legit, legal and copacetic. Building on this legal basis is a great start. The key will be, do people actually use the system and is there demand?

Nonetheless, NEO and its team are making big moves to grow deep roots in the Asian continent and beyond (as seen in Western regions). The developer focused architecture will most definitely pay off as they onboard new developers faster than other projects which have steeper learning curves.

Current rapid technology adoption in Asia as a whole plus their critical role as manufacturers (including ASICs for mining) makes that region (where NEO is based) a hotbed of development. Asian markets like China, Japan, and many other nations are quietly becoming powerhouses in the Blockchain and FinTech industry.

For NEO to be aligned with that bodes well for their future growth and trajectory.

NEO Cryptocurrency: Everything You Need to Know about China Ethereum

CoinSutra » Cryptocurrency » NEO Cryptocurrency: Everything You Need to Know about China Ethereum

The arms race to make the next killer cryptocurrency and blockchain app continues!

Ethereum pioneered this trend and still aims to be the world’s only super-computer by hosting numerous smart contracts and DApps.

Following in the footsteps of Ethereum, many new cryptocurrencies and blockchain projects have mushroomed up, some of which we have also discussed in the past (such as Stratis, Waves, Ethereum Classic, etc.).

All these projects offer something different, and that’s why this booming world is so exciting!

Recently, a new contender has joined the race – NEO (formerly known as Antshares).

In the last few weeks, if you were monitoring the altcoin market, then I am sure you heard about NEO.

NEO is the cryptocurrency which has most recently given a powerful return to its investors, eventually reaching its all-time high of $52 per token.

I didn’t cover it at that time because I was expecting a correction in price. A few days ago, the Chinese government announced a ban on ICOs which directly affected NEO – a Chinese company. Now, I believe the price has finally corrected itself (around $35.73 at the time of this writing).

So without further delay, let’s begin looking at this buzzing cryptocurrency.

What is NEO?

NEO is often referred to as “Chinese Ethereum” or “Ethereum’s killer by many, but in this article, I will not call it anything like that. I think many crypto projects have a great future because of their reasons for being built (i.e. the problems they solve). NEO is no exception.

NEO is the first decentralized, open-source cryptocurrency and blockchain platform launched in China.

Apart from the NEO cryptocurrency, NEO has one more crypto-token called GAS (formerly know as ANC-Antcoins). I will discuss both further in the article.

NEO tags itself as a “distributed network for the smart economy”, and NEO’s goal speaks volumes about their smart economy concept.

Goal: To be the vanguard in the effort of building a smart economy.

SMART ECONOMY= Digital Assets + Digital Identity + Smart Contracts

Note: On 22nd June 2020, Antshares rebranded itself to NEO in front of 200 attendees at the Microsoft HQ in Beijing. It was rebranded to renew its professional image. NEO was chosen as the name because “NEO” in Greek means, “newness, novelty, and youth”.

Team NEO

The main community members include the founder – Da Hongfei, co-founder and core developer – Zhang Zhengwen, Secretary General – Tao Rongqi, and other community developers, operators, and contributors.

NEO Use Cases

Digital Assets- NEO aims to convert traditional assets into digital ones using smart contracts. These digital assets will be decentralized and will be protected by law using digital certificates on the blockchain, which in turn, will guarantee trust.

Digital Identity NEO will enable the creation of identity information of organizations, individuals, and entities in electronic form. These identities will be usable via multi-factor authentication mechanisms such as facial recognition, fingerprints, voice recognition, and SMS.

Smart Contracts The name “smart contracts” was coined by a cryptologist and computer scientist, Nick Szabo, in the 90s. (See our extensive guide on smart contracts here.) The smart contract platform developed by NEO is truly revolutionary. In NEO, unlike other smart contract platforms, you need not learn a new smart contract language.

If you are a developer using C#, Java, or any other mainstream programming language, you can get started right now to code your smart contracts. NEO’s Universal Lightweight Virtual Machine (NeoVM) has the advantage of high certainty, high concurrency, and high scalability for smart contracts based on the blockchain.

DApps NEO will support the development of decentralized applications by continuously supporting and developing more mature development tools and techniques. (See our extensive guide on DApps here.) Some of the examples of DApps are smart funds, AI-assisted legal smart contracts, and decentralized exchanges.

NEO and GAS Total Supply (Working Mechanism)

As I told you in the introduction, NEO has two crypto tokens:

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  • NEO – formerly known as Antshares (ANS).
  • GAS – formerly known as Antcoins (ANC).

The NEO token acts as the investment token of the NEO blockchain. It has a hard cap total of 100 million tokens which will be used in block creation, network management, network changes, and other consensus requirements. These 100 million tokens were all pre-mined during the genesis block creation.

One unique thing to note is that NEO is unlike other cryptocurrencies in the fact that it is not divisible; the smallest unit will always be 1.

The GAS token also has a 100 million hard cap, but it acts as the fuel for the NEO blockchain. Unlike the NEO token, GAS is divisible by a factor of 1/10^8, and it was not pre-mined. 100 million GAS tokens will ultimately be generated through a decay algorithm in about 22 years.

GAS will be used for resource allocation and network charges for operations such as running DApps, smart contracts, and providing incentives for maintaining the blockchain.

Market Cap of NEO

The total circulating supply of NEO is 65 million tokens, and the current price of each unit is $18.73. At the time of this writing, the current market cap is $1.1 billion (CoinMarketCap).

How To Buy NEO Cryptocurrency?

Buying NEO directly from fiat currency is a little difficult. But you can always exchange your other coins, such as BTC, LTC, or ETH in exchange for NEO tokens. The procedure is very simple.

You will need the following things to buy NEO:

  1. Your NEO address where you would like to get your NEO tokens.
  2. Some bitcoins/altcoins to exchange for NEO.

Note: Though this guide shows you how to buy Ripple in exchange for BTC, the process is exactly the same to buy NEO. I have used Changelly several times without any issues. You can check out our Changelly review here.

CoinSwitch is also an exchange platform similar to Changelly. It is pretty new to the industry, and at present, it only supports BTC to NEO exchanges

Buy NEO from Exchanges

Below is a list of established cryptocurrency exchanges listing NEO, but only Binance gives you access to the GAS token for holding NEO.

  • Binance: Supported pairs are NEO/BTC, NEO/ETH, NEO/USDT, NEO/BNB
  • Huobi: Supported pairs are NEO/BTC, NEO/USDT
  • Bitfinex: Supported pairs are NEO/BTC, NEO/USDT, NEO/USD
  • KuCoin: Supported pairs are NEO/BTC, NEO/ETH, NEO/USDT

Best NEO Wallets

Neo doesn’t have many wallet options, but for early adopters, there are definitely options out there. These wallets also support NEP-2, NEP-5, NEP-9 tokens.

The Future of NEO

NEO is a great project with potential equal to (possibly even greater than) Ethereum.

NEO runs on a specifically developed proof of stake consensus mechanism which is arguably the best proof of stake mechanism available. NEO’s blockchain is also quantum computer proof which gives it an upper hand in comparison to other blockchain projects.

Additionally, the ability to code smart contracts and DApps in mainstream programming languages such as C#, Go, and JAVA is a major advantage point. This is a positive thing for developers because it lowers the entry barrier for them and reduces the time-cost factor for learning a whole new smart contract language.

This one single point alone makes it a strong competitor of Ethereum because, with more common languages available to devs, more smart contracts and DApps will be deployed on the platform, thus causing a price rally.

From a technological point of view, NEO looks better than many other projects out there as it is also Turing complete, like Ethereum.

And let’s also not forget the recent price rally of NEO in which it surged from $6 to $52 almost overnight, reaching the top 5 market cap and bypassing NEM, DASH, STRAT, and LTC. I think this price rally was mainly because investors could see the potential in NEO’s white paper. The biggest hurdle right now with NEO is the China regulation scene.

Update: NEO is moving sideways as of now and is at $15 and right now it is in the top 100 currencies but as you know, price is just a number.

After Chinese trying to regulate Cryptocurrency industry and banning ICO’s, the future of NEO is doubtful for now. From a winning ship, it’s now a sinking ship. Only if Chinese life the ban on ICO’s then Neo could become Ethereum killer as what we hoped for. For now, the price will fall more until it found proper support.

So let me know: Are you invested in NEO? What do you like/don’t like about the platform? Share your thoughts with us in the comments below!

And if you found this post useful, don’t forget to share it on social media!

Official NEO Resources

Below are some links that will keep you updated about NEO:

Like Neo, I have covered in depth guide about many popular cryptocurrencies. You can read about them by clicking the link below:

An award-winning blogger with a track record of 10+ years. An international speaker and author who loves blockchain and crypto world.

After discovering about decentralized finance and with his background of Information technology, he made his mission to help others learn and get started with it via CoinSutra.

Join us via email and social channels to get the latest updates straight to your inbox.

Believe it or not, but very few cryptocurrencies shot to fame as NEO did.

For the uninitiated, NEO cryptocurrency is famously dubbed as the “Chinese Ethereum” and is an open-source blockchain platform for building DApps and smart contracts.

NEO, formerly known as Antshares, got very popular in 2020 after its rebranding that resulted in many investors making fortunes during that phase.

Today, NEO has reached modest price limits and is likely to rise again as its technological developments are being carried out at a rapid pace.

I have covered NEO in detail here: NEO Cryptocurrency-Everything You Need to Know about China Ethereum, so I will not get into it again but highly recommend you go through it.

How To Buy NEO

Given NEO’s popularity, it is not difficult to buy it as many cryptocurrency services dealing in NEO. However, before talking about those services, let’s talk about all the ways in which you can buy NEO.

  1. Buy NEO for fiat currency via bank transfers
  2. Buy NEO in exchange for other cryptocurrencies like ETH/BTC etc.
  3. Buy NEO for cash [peer-to-peer sources]

Now, the only problem is, once you know all these ‘how to’ ways, you just need to know ‘where to’ go and use these for buying NEO in today’s world.

Where To Buy NEO

1. Buy NEO for fiat currency via bank transfers

Buying cryptocurrencies like NEO in exchange for fiat currencies like USD, EUR, GBP through centralized exchanges is quite easy. These exchanges provide you fiat linked crypto wallets in which you can deposit fiat currencies and buy NEO in exchange for it.

Some trusted services that allow you to do that to buy NEO are:

  • Binance: You can buy using credit card.
  • Bitfinex : Supports USD, EUR, JPY, GBP
  • Livecoin: Supports USD

2. Buy NEO in exchange for other cryptocurrencies like ETH/BTC etc.

Another easy way of getting hold of your NEO cryptocurrency is through centralized exchanges that deal in a variety of cryptocurrencies.

Through these exchanges, you can exchange one cryptocurrency for another crypto for a marginal trading fee. Similarly, if you have ETH, BTC, LTC or USDT, you can exchange these for your NEO cryptocurrency.

Below is a list of established cryptocurrency exchanges where you can exchange other cryptos for NEO.

  • Binance: Supported pairs are NEO/BTC, NEO/ETH, NEO/USDT, NEO/BNB
  • KuCoin: Supported pairs are NEO/BTC, NEO/ETH, NEO/USDT, NEO/KCS
  • Bibox: Supported pairs are NEO/BTC, NEO/ETH, NEO/USDT
  • Livecoin: Supported pairs are NEO/BTC, NEO/ETH, NEO/USD

3. Buy NEO for cash [peer-to-peer sources]

Buying NEO for cash in a peer-to-peer manner is tough because NEO doesn’t have a peer-to-peer escrowed platform like LocalBitcoins.

However, no one can stop you from dealing NEO in a peer-to-peer fashion if you find buyers and sellers. Also, in the absence of peer-to-peer service, it becomes tough to find individuals who are interested in buying/selling the NEO cryptocurrency.

Lastly, one needs to be at guard from scams because escrowed services aren’t available yet for exchanging NEO.

Conclusion: How to Buy NEO Crypto?

Buying NEO is not difficult if you know about all the avenues to buy NEO. Moreover, holding NEO in NEO wallets as well in some exchanges like Binance gives your extra passive income in the form of NeoGAS.

We highly recommend you to avoid exchanges and use Ledger Nano S or NEON wallet directly for storing your NEO and claiming your NeoGAS.

NeoGAS also can be traded easily on exchange for other cryptocurrencies. Some of the exchanges that allow you to do so are:

  • Binance: Supported pairs GAS/BTC
  • KuCoin: Supported pairs GAS/BTC, GAS/NEO, GAS/KCS
  • Supported pairs GAS/BTC, GAS/USDT

Now it’s your turn to tell me: Are you invested in NEO? If yes, which method have you used to buy your NEO from the above list? Did I miss any other ways to buy NEO? Let me hear your thoughts in the comments below!

Do share this post with your friends if you find it informative.

Here are a few more articles that you should read next:

An award-winning blogger with a track record of 10+ years. An international speaker and author who loves blockchain and crypto world.

After discovering about decentralized finance and with his background of Information technology, he made his mission to help others learn and get started with it via CoinSutra.

Join us via email and social channels to get the latest updates straight to your inbox.

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