The term NEO means new and young in the Greek language, it is a smart economy platform which has been rising in popularity in the cryptocurrency market. It is commonly called as the Chinese Ethereum and has a lot of hype behind it
What is NEO
According to the founders, NEO is a non-profit community-based blockchain project which harvests the power of blockchain technology to digitize the assets and to automate the management of these digital assets using the concept of smart contracts that help realize the concept of a smart economy with a distributed network.
NEO was developed by OnChain which is a Shangai based blockchain R&D company founded by Da Hongfei and Erik Zhang. The project took its birth when the research started in the nascent stages in early 2014 and in less than two years the company was listed in the Top 50 Fintech companies in China. The first crowd sale for NEO took place in October 2015 that lasted 10 days and 17.5 million tokens were sold for a price of $550,000. The second crowd sale saw a huge spike in the value wherein the remaining 22.5 million tokens were sold for a price of $4.5 million. This was a huge spike in the value of the coin that was propelled by the incredible demand and limited supply.
Technology around NEO
NEO works on the concept of Smart Contract, in layman terms, Smart Contracts are automated Contracts that are self-executing in nature with specific instructions written in the got that get executed when the certain conditions are made. As this whole thing runs on the blockchain network, for ambiguity to be avoided, it should be completely immutable and should be able to run on multiple nodes without the data integrity being compromised. For this to function smoothly, a smart contract should be
The NEO system works on multiple levels and there are several things that work together for the platform to be realized.
DBFT (Delegated Byzantine Fault Tolerance) algorithm:
Unlike most of the Blockchain coins that use the proof of work concept, NEO implements the DBFT algorithm that allows it to resist the Byzantine Generals problem and maintains data integrity even if a few nodes contain unsynchronized malicious intentions. This is done to enable fault tolerance in a distributed network of computers to ensure that the data is not easily manipulated.
NeoX is the system that creates the ability to execute and obtain operation across the various blockchain networks.
The NEO contract is a mechanism used for creating smart contract seamlessly in a scalable pattern across high-performance environments that integrate pre-existing codebases.
NeoFS is a service for decentralized storage, this data is not stored on any one device or a network of devices owned by a single entity, rather it is distributed over the network of devices more like a peer-to-peer Cloud storage.
NeoQ is a cryptographic mechanism that creates problems that cannot be solved by quantum computers thereby ensuring that the network is quantum-proof.
The NEO network is being actively promoted and is often positioned as a “public cloud” that is a part of the much bigger strategy in establishing themselves as a Blockchain platform industry leader. The developers are provided with tools and platforms to develop the ecosystem and this has seen notable developments.
Why should you invest in NEO?
NEO has a 100% pre-mine model which enables the users to get additional coins in the form of GAS by holding on to the coins in the wallet. NEO allowed people to invest through a crowdfunding event but they still made money from the sale and as there is no mining and the tokens are directly issued, the question of decentralization certainly arises. The tokens were divided into two batches, 50 million tokens were given to people via crowdfunding while the rest 50 million were reserved to be managed by the NEO Council.
This lockout ended on October 16 and the remaining funds were dispersed as follows.
- 15 million NEO marked for “contingencies”
- 15 million invested in other auxiliary Blockchain projects that are used by NEO
- 10 million NEO were given as incentives to developers in the NEO ecosystem
- 10 million NEO were given to developers and NEO Council members
The biggest concern to a few people is the fact that the multiple million NEO with the developers could be dumped and that it might result in the downfall of the market. NEO has a total of 100 million tokens and ownership of NEO gives the holder rights to manage and make a decision in the network. These rights including NEO network parameter changes and Bookkeeping rights along with a few others.
Things to know about NEO
- Aims to digitize assets to reduce ambiguity.
- Owning NEO Tokens gives the owner rights across the networks.
- Backed by Chinese government and Alibaba.
- Also called as the Chinese Ethereum.
- Total of 100 million tokens of which 50 million were sold in the initial crowdfunding sale.
- The rest 50 million were invested towards long terms growth of NEO network.
- Holding onto NEO in the wallet entitles the users to GAS tokens.
- Supports additional codebases including C#, Java, Kotlin etc.
- Works on the concept of Smart contracts.
- Claims to be a non-profit community-based Blockchain project.
Where can you buy NEO?
For the International investors, the biggest market to buy NEO is Binance.com where you can buy it with one of the several options including BTC, ETH, and USDT. The other markets are CoinEgg, Upbit, OKex, Bitfinex, Huobi, Bittrex, and others.
For Indian users, they can purchase NEO through Koinex, Bitbns, Cryptoidol, among a few others as well but it is Bitbns and Koinex where the volumes are high.