NEO coin is a cryptocurrency that aims to develop a decentralized network for the smart economy. The idea is to digitize already existing assets. The exchanges will become dematerialized (exchanges of titles, information, etc.) and they will transform into a blockchain.
How secured the NEO coin is?
These operations pass through to smart-contracts (self-executing contracts). Smart-contracts registered in the blockchain give them a tamper-proof and inviolable character.
NEO coin wants to link the real economy and the blockchain by attaching itself to specific processes such as Digital Identity, which makes it possible to verify the identity of uses and to bend to the same rules as in real life.
Here are the three pillars of NEO coin’s smart-economy
The Digital Assets on Blockchains. Indeed the blockchain allows the digitalization of the assets. They become traceable, transparent, tamper-proof, inviolable and without intermediaries.
Digital Identity: Digital identities of individuals, and organizations are validated.
Smart-contract: Programs are running on automatic when both parties meet the conditions. NEO has a smart-contract system: NeoContract. The latter makes it possible to write smart-contracts in a multitude of languages.
NEO is separate into two tokens:
– Allows you to acquire governance rights to manage the network. It will enable to vote, to choose the nodes of the blockchain
– Enables you to receive dividends, so-called GAS
Represents the fuel needed for the network to run, it is similar to Ethereum Gas. And it is mainly used to pay the fees when you need to edit or save blockchain information.
How does NEO coin work?
The Blocks are generated every 15-20 seconds. The NEO blockchain can handle a maximum of 10,000 transactions per second.
Holding NEOs in its portfolio earns GAS periodically and in the form of dividends. How to get GAS by owning NEO? You have to store your NEO on the Neon wallet, and your number of GAS will increase as the weeks pass by. No need to stay connected! This feature is also available on some exchanges like Binance or KuCoin.
What is the GAS for? As we saw above, the GAS will serve as fuel on the blockchain NEO.
NEO coin works with PoS (Proof-of-Stake) technology. There are no miners or mining systems for the NEO.
The governance system used is the dBFT: Delegated Byzantine Fault Tolerant. All participants (who have NEO coin) are part of the selection process, in real time, every 15 seconds, to determine which blocks are valid or not.
You can be a node or “bookkeeper.” You will receive “dividends” calculated on the transaction fees. To do this, you must have NEO coin, at least 1,000 GAS, as well as a complete node (that is: download the entire NEO blockchain and keep the registry up-to-date). You may also be required to obtain a certificate from NEO for security reasons.
Making ICOs on the blockchain NEO is possible. Indeed, NEO proposes its token, on its blockchain: the NEP-5, which makes it possible to create decentralized applications. This token directly competes with Ethereum’s ERC-20 token.
Two projects have already completed an ICO via NEO:
What future will NEO cryptocurrency have?
Here are different projects which are in the pipes for NEO coin:
NeoX: Protocol allowing cross-chain active exchanges, cross-chain transactions and the execution of smart-contracts on different blockchains.
NeoFS: Decentralized storage protocol for storing digital certificates of digital identities.
NeoQS: Cryptographic Mechanism (Quantum Safe) to protect the blockchain from the emergence of quantum computers.
It should also be clear that NEO maintains a close relationship with OnChain, a Shanghai-based R & D company. Indeed, the founders of NEO are also part of the founding team of OnChain.
NEO coin receive its funds through an ICO (cryptocurrency fundraising), which is not the case of OnChain which has been funded by the most significant private conglomerate in mainland China: Fosun. OnChain’s product is DNA for Distributed Network Architecture, a framework that allows entities to implement private and public blockchain and quickly. NEO and OnChain share only the same architecture and smart-contracts system.
In the future, we should see the NeoX protocol, which will allow the execution of cross-chain exchanges, it means that two blockchains can be linked together.