NEO Wiki ▷ What can the coin do? Cryptocurrency & more!
Our NEO cryptocurrency guide gives you everything you need to know. We explain what it is, what NEO does and give our opinion on the project. We ask that you exercise caution before making cryptocurrency investments and encourage you to do your own research.
General information about the NEO cryptocurrency
NEO has been declared by many as "The Ethereum of China" or "The Ethereum Killer" and is a platform for the "Smart Economy". But what is behind an “intelligent economy”? It is the digitization of assets through the use of Smart Contracts. These digital assets are then managed themselves and can be distributed or exchanged within the NEO network. The network will also be able to digitize identities, which is vital for transferring digital assets from one person to another and issuing digital asset certificates (as proof of ownership).
The assets are digitized using apps that are based on the NEO blockchain and make smart contracts much more useful. That means these contracts can be used to transfer ownership of real property. Examples of items that can be digitized are: property, cars, gold, oil, or even groceries that you would buy in the supermarket. Each digitizable object can then act trustworthily within the NEO network. An exchange is carried out at significantly lower costs than previously possible (since, for example, no notaries or lawyers need to be involved) and can be done in seconds and across borders.
The smart economy can actually change the world. The best part is that NEO ensures that digital asset certificates are compliant from a regulatory perspective. This is crucial for the proper functioning of the Smart Economy project.
Both NEO and Ethereum offer developers the tools to create decentralized applications on their own blockchains, launch ICOs on their platforms and offer smart contracts. The difference is that Ethereum reacts to the new requirements of the blockchain economy and then finds a solution. NEO anticipates future demand and develops solutions for the blockchains itself or with other crypto project teams.
What is the NEO Council?
The NEO Council is a group made up of the founders of the project. You are responsible for strategic and technical decisions and the further development of the project. The power of the council has a control and balance as NEO owners can vote on network issues. In this way, investors can have a say in the project.
The project's ecosystem is managed by the council. They help decide which projects can join the network and even fund crypto projects that they believe can expand their ecosystem. To achieve such goals, fund marketing and ensure the platform has the best developers, the NEO Council kept 50 million coins ICO. In essence, well over $ XNUMX billion in advice to build his version of the new "smart economy".
The 50 million coins held by the NEO Council (out of a total of 100 million coins) were distributed as follows:
- 15 million coins for investments in other crypto projects using NEO.
- 15 million coins are kept in reserve just in case.
- 10 million coins are used to motivate developers in the ecosystem.
- 10 million coins are to be used to motivate council members and project developers.
The council essentially guarantees that the project has a direction. The structure and leadership model shows that cryptocurrency projects are becoming more and more professional. We believe this is necessary for outsiders to take cryptocurrency seriously.
There is no doubt that NEO has an impressive ecosystem and is already well on its way to creating the smart economy they are striving for. It includes different types of exchanges, artificial intelligence, travel, blockchain trust, infrastructure, identity digitization, regulatory audits, research, and content platform scaling solutions.
With NEO running all applications in the ecosystem, application growth should be good news for the price of a coin through the creation of network effects. The way you think about NEO is that it's the backbone that all of these great apps are built on.
An important part of the ecosystem that was not mentioned in the graphic is the "City of Zion"It's an open source community of developers working to improve NEO and have received many grants from the council. The city of Zion has things like that NEON wallet, Block scanner and even developed the NEX exchange (one of the most anticipated ICOs in 2018). We have no doubt that this network of developers will play a huge role in the future of the project and that they have already proven themselves.
It's important to remember that the ecosystem is still in its infancy. The project has a working product and thus has an advantage over competitors such as EOS and Cardano. We have to accept that Ethereum is the platform of choice for ICOs at the moment. Even though NEO was able to increase its market share in the course of last year, we are assuming further growth this year.
The NEO economy
There are two different coins: NEO and GAS.
- You can think of the coin as similar to a typical stock on the stock exchange.
- The coin represents a right to manage the network and includes voting rights. Essentially, this is owned by the network.
- The coin pays off for you! For every 10 NEO coins you own, you will get roughly 1 GAS token per year. Some exchanges will automatically give you GAS, but if you keep your coins in a NEON wallet then you will surely receive your dividend, you can Try out your expected GAS reward on this machine.
- The NEO coin cannot be divided by less than 1, except as a rule if you are using a cryptocurrency exchange like Binance which allows you to divide by fractions of a coin, just keep in mind that you do no fractions of a coin from the exchange can take off. If you do this lose your excess NEO.
- There are currently no transaction fees.
- It is the fuel for the NEO network. In the same way that you have to fill your car with gasoline to make it work, app providers have to use GAS to make sure their apps run smoothly on the NEO blockchain.
- GAS is divisible. The smallest unit is 0,000000000001.
- The divisibility of the GAS tokens could be of great importance. Imagine that NEO was worth $ 1.000 per coin. Many investors who want to invest a smaller amount could not keep it safely off the exchange (smallest NEO unit is 1). This would mean that smaller investors can only get access to the project by buying GAS. That is why we think GAS is so important to the project.
Both tokens can also be used to participate in ICOs that use the NEO blockchain.
NEO has one of the largest teams in the field of cryptocurrency with over 50 employees and team members. The entire team is very talented, but we just want to focus on the founders.
- Founder - DaHongfei: Graduated from South China University of Technology in 2001. He then served as CEO of IntPass for 9 years before founding NEO and Onchain in January 2014.
- Founder & Main Developer - Erik Zhang: Graduated from Shanghai University and then founded NEO and Onchain.
You are just wondering what Onchain is? It is important to understand that Onchain and NEO are two separate companies. However, the interests of these two companies are aligned and support one another.
Onchain offers private blockchain solutions for Chinese companies and government agencies, while NEO has a public blockchain. Many in business and government will be interested in private solutions, but some will likely want public blockchain solutions as well. This is where NEO comes in. You can think of the two companies as follows:
- NEO = Public Blockchain for Applications.
- Onchain = private blockchain for government and Chinese businesses.
Onchain and its work with the Chinese government is huge business. Many see regulation as one of the greatest threats to cryptocurrency projects, but in order to comply with regulation by the national government, the project must be less fragile and more stable than others. Again, this is a great benefit. NEO's main market is China, and the founders have pre-established relationships with government officials, building them and ensuring compliance solutions are offered within the NEO ecosystem.
The future of the project
NEO seems to have all the requirements to be the Ethereum of the East. It is well known that China does not like to use western products like Google or Amazon, but prefers to make its own domestic products to serve its home market. At the moment the project is the largest cryptocurrency to come out of Asia and its ecosystem is growing rapidly.
We assume that it will not be long before NEO gains market share from Ethereum takes over in the ICO market. Indeed, there could be an exodus of applications migrating from Ethereum to NEO in 2019. In the following we explain the reasons why we assume this development:
- Crypto kits showed that the Ethereum network, with a maximum of 15 transactions per second, is not enough to properly run even a single application. NEO, on the other hand, can process 1.000 transactions per second and has a working product.
- In the past, decentralized app developers had no real choice but Ethereum. NEO has a working product and can compete with Ethereum for new ICOs and offer more transactions per second.
- Ethereum app developers need to create apps in a new programming language called Solidity. This takes time to learn and there are significant shortcomings among Solidity developers right now. NEO, on the other hand, supports common programming languages, which makes it easier to build applications on the blockchain. This is obviously a huge plus for adoption.
- The project appears to be backed by the Chinese government while Ethereum does not appear to have any government support. Hence, Ethereum is perhaps more prone to negative regulatory changes.
We believe that there will be a battle between the Ethereum and NEO application platforms in the coming years.
The ICO of the NEO Coin
First, you should know that before it was renamed in August 2017, NEO was known as AntShares. The ICO also started in August and a coin cost 3 cents. The coin then hit the stock exchanges first in September 2017, costing 18 cents per coin, hitting an all-time high of $ 2018 in January 196,85.
Even if NEO loses around 75% of its historically high value, it will always be the third most profitable ICO for investors in the history of cryptocurrency. You can see the current return since ICO under ICO Stats.
Should You Invest in NEO Coins?
It is entirely up to you whether or not you invest in NEO Coins. However, we can express our opinion on the project:
- It is the first cryptocurrency to have an A in the Weiss Cryptocurrency Ratings Erhält.
- It is Ethereum's closest competitor that has a working product.
- The project enables application developers to build in common programming languages. This makes setting up crypto project teams much easier and cheaper.
- Hongfei and Erik Zhang work closely with the Chinese government through Onchain.
- The focus is on creating one regulatory compliant Smart economy.
- History has shown that China likes to advertise products made in China versus western products.
- The NEO market capitalization is around 10% of the Ethereum at the time of creation. We think there is better potential for bigger gains than Ethereum.
- The space for the application developer's platform is crowded. There are many projects that compete with NEO and will soon bring work products to market like, for example EOS, Cardano and Lisk.
- Ethereum has the advantage of being a first mover and is working to significantly increase its transactions per second. If they are successful, then Ethereum can have a faster platform than NEO.
How do you buy NEO?
We have a separate one Step-by-step article with detailed instructions on how to buy and store NEO-Coins using different methods.
The Team of Bitcoin-News.one is of the opinion that smart economies are the future and will become more and more efficient over time. We envision a future in which:
- We can buy a house or a car quickly and easily without significant intermediary fees.
- ID checks are easy and we don't have to constantly scan our passports and look for dates. Companies that ask for these ID checks still don't seem to understand that most people receive paperless invoices these days.
- Items can be traded quickly and easily across borders. When I want to sell my product as new, I want it to be as simple as possible and avoid usury fees.
- We don't have to pay high commissions to travel companies when booking a vacation.
- The sharing economy is getting bigger.
- The gig economy continues to grow and trustworthy job markets are all the more important.
We live in a digital age and we think the time has come for the economy to change to reflect this. We have to accept that the dream of this digital smart economy is still in its infancy and we need pioneers like NEO to make this a reality.
When it comes to projects like Ethereum and NEO, we think there is enough room for coexistence. We don't just see one winner for the entire scenario. However, we are aware that something bigger and better could be just around the corner and that projects like Cardano and EOS could create serious competition.
We expect the battle between application developer platforms in the years to come. We are excited about the potential of the project and look forward to seeing it battle Ethereum, EOS and Cardano.
Start on eToro, the test winner crypto broker from Bitcoin-News.oneSIGN UP NOW
Capital is at risk. Not ready yet? Read our Etoro review.