NEO is often referred to as the Ethereum killer. This may be quite dramatic, but it is one of the strongest crypto-currencies in the world. Even when the regulations in the Asian market were uncertain, the coin managed to thrive.
In this article, we will discuss the things you need to know about this popular Chinese alternative currency.
What Is NEO?
NEO is a blockchain platform that has its own cryptocurrency and facilitates the development of smart contracts and digital assets. Erik Zhan and Da Hongfei developed it in 2014 in China. Before now, the name was AntShares, but in 2017, the name changed to NEO.
This name change happened at Microsoft’s headquarters in Beijing. The essence was to refresh the professional image and identity of the coin. And that is why the new name means “young” or “new” in Greek.
The Chinese developers created NEO according to the basic model of Ethereum. Hence, it was nicknamed Chinese Ethereum. It is a decentralized, open-source platform and the first of its kind in China.
The blockchain platform uses 2 types of tokens. The first is the NEO cryptocurrency while the second is the GAS, which was formerly known as Antcoin (ANC) when the platform was called Antshares. The developmental and professional goals of the cryptocurrency focus on building a smart economy. And the platform is being described as a distributed network for the purpose of achieving those goals.
What Can You Do with NEO?
Due to the fact that NEO is basically a platform, and secondarily a currency, you can do different things with it. Here are some of them:
1. Development of Dapps
The NEO platform supports the unrestricted development of decentralized applications. It focuses on different tools and techniques that developers can use and strives to improve them. A few of the kind of dapps they deal with are options for smart fund, legal smart contracts that utilize AI assistants, and decentralized exchanges. You can read more about dapps here.
2. Digital Identification for Individuals and Businesses
Individuals, businesses, and various entities can use NEO to merge their identification information into a universal digital format. The platform allows users to have multi-level authentication processes that require different factors for further safety. They include all classics like facial scanning and identification, SMS, fingerprints, and patterns for voice recognition.
3. Digital Assets
You can convert your traditional valuables into a digital format through a smart contract. That way, you do not have to worry that your assets are at risk. The digital assets are created to be decentralized and when you apply digital certificates to blockchains, you are sure of legal protection.
4. Smart Contracts
This is what distinguishes NEO. You do not have to learn another programming language to initiate a contract. If the language you use is C#, Java, or just any programming language, you can use the NeoVM (Universal Lightweight Virtual Machine) to code the contracts without delay.
If you are considering buying NEO for any reason, you can check https://rubix.io/neo-exchange/ for more information.
NEO Token vs GAS Token
Before you start trading NEO, you need to understand that there are 2 important aspects of the business, 2 different types of tokens.
The first type of token is the NEO token. It is the basic investment of the blockchain platform. The cap total of NEO token stands at 100 million. And the token can be utilized in consensus requirements like network management, modifying the network, and creating more blocks, among others.
The entire 100 million NEO tokens were pre-mined when the initial block was created. A notable feature of the token when compared to several other cryptocurrencies is that it cannot be divided. Irrespective of the situation, the smallest unit of a NEO token will always stay at one.
GAS token, on the other hand, has the same cap total as the NEO token. It is used as the blockchain’s “fuel.” It can be used in the running of dapps, allocation of resources, and so on. However, it is divisible (its factor is 1 / 10 ^ 8). This token was not pre-mined. The motive is to produce the 100 million to reach the cap over an estimated period of 22 years through the decay algorithm.
We have explained what NEO signifies, its founders, and the different ways you can use it. We have also discussed the two aspects of the coin – NEO token and GAS token. Now that you have this information, you can consult your financial advisor and start trading.