NEO, the first original blockchain to come out of China, has been a huge hit as of recently. The price of NEO has jumped up from $8 to 42$ (with a high in the upper 50s) in a matter of days during late July/early August. The smart economy that NEO boasts of is a new concept that brings together smart contracts with trade agreements.
The smart contracts are currently being written in all kinds of programming languages, such as C#, Python, Go, Java, and many more. NEO is new to the crypto scene and there are many surprises that will come to us in the future. But as of today, there are many reasons to get excited about NEO.
Like Ethereum, NEO has a currency to buy within the NEO ecosystem. Smart contracts in NEO cost gas, kind of like how Ethereum uses ether. The difference here is that any NEO holder automatically generates Gas. 1000 NEO will generate about .4 Gas per day, which will show up in your NEO wallet. Gas can be traded on exchanges and is normally worth about 50% the price of NEO. NEO can be seen at the “miner” and you are able to “mine” the Gas by simply purchasing NEO.
2. NEO was once a cute ant
NEO was a major rebranding that happened this past July. Before that, it was called Antshares, which generated Antcoins.
Although Antshares was doing pretty well on its own, the founders suggested a more serious name to be taken more seriously globally. What they may not have noticed is that NEO is also the name of the guy in the Matrix. Or, maybe they did.
3. Language Compatibility
Solidity is a big complaint to a lot of programmers. Ethereum offers a lot in their smart contracts, but it requires learning a whole to language to perform. One of NEO’s biggest advantages to writing on their blockchain is the ability to write in C#, Go, Python, and more. Developers at NEO are constantly working to make their virtual machine compatible for all. This can be a huge reason for companies to write their programs on NEO, as opposed to Ethereum.
dBFT is NEO’s secret weapon. When more news comes about dBFT, we’ll be seeing a significant change in financial users coming to NEO’s smart contract. dBFT ensures finality, meaning that it is almost impossible to create a fork in the blockchain. Bitcoin and Ethereum have both already forked once, causing instability in the blockchain. Bitcoin is set to possibly fork again in November when SegWit is activated. On top of that, NEO can promise up to 10,000 transactions per second. This is monumental, considering Bitcoin averages 2-3 transactions per second, and Ethereum just 15.
5. Ready for the economy
NEO is called the “smart economy” because its smart contracts are geared up for the real world, and its financial demands. NEO adds digital identities to all their assets, to ensure integrity in their transactions. Regulatory and governmental agencies will be more willing to accept NEO because it’s very hard to do something illegal with it. These methods have been considered controversial among traditional Bitcoin fans, because a core belief of the blockchain was to remain completely decentralized, with privacy ensured. Zcash, for example, allows complete anonymity of transactions, because they believe that internet privacy is a right. Although this is true, something like NEO will need to be within the ecosystem, in order to adopt more traditional companies, as well as gain acceptance from the Chinese government.
6. East/West Connect
Even though NEO has originated in China, there is an unusually large western investor-base that supports NEO. Reddit, a popular western social forum, has a NEO base with over 17,000 subscribers. CoZ, or City of Zion, is a group of western developers that have gotten together to support NEO. They’ve come up with their own lite wallet, which can be viewed on the official NEO website, as well as work on various projects to help the core development team in China. NEO’s main focus has always been China, and the east, with intentions of getting the western community on board as the project evolved. This surge in western popularity is largely the reason NEO jumped 20$.
7. NEO as shares
NEO is a share in the NEO blockchain. It cannot act in the same ways as traditional currencies, for NEO cannot be divided less than 1. While you are able to buy fractions of a NEO on the exchanges, you will not be able to add a fraction of a NEO to your wallet. This has caused some complications on exchanges such as Bittrex, where the withdrawal fee it .1 NEO. If you try to send 4.9 NEO to your wallet, you will lose the .9 and only receive 4.
8. Nest Fund
NEO will be creating a fund for NEO similar to the DAO with Ethereum. But, upon seeing what has happened to the DAO, NEO will work to learn from Ethereum’s mistakes and create a solid fund built on smart contracts. Participants in the Nest Fund start with smart contracts and end with smart contracts. The Fund is transparent, and investors can exit and leave at any point.
9. NEO Virtual Machine
NEO Virtual Machine (NeoVM) is a very lightweight-virtual machine that acts much faster and more efficient than others. Programs can be written in advanced programming languages and Turing-complete smart contracts can create unlimited scalability while run in NeoVM. Lattice cryptography-based signing helps in avoiding a quantum crack, using the Shortest Vector Problem for ultimate encryption (quantum computers are unable to solve this).
10. The Smart Economy, not the Chinese Ethereum
Let’s put to rest this phrase, “Chinese Ethereum.” While NEO may have smart contracts and a virtual machine, its dBFT model clearly makes NEO a hybrid that specifies with the economy. dBFT has been only used in private blockchains until NEO, making it a somewhat centralized blockchain. This will become necessary in recreating the financial market for blockchain, and digital signatures will hold all accountable for their transactions. NEO is well on its way to the moon, as it has already launched into a top ten coin in market cap just 2 weeks after its rebranding to NEO (from Antshares).