NEO, known in the market as the “Ethereum of China” is an open source blockchain project and cryptocurrency developed to digitize assets and to enable the management of those assets via “smart contracts”.
The term “neo” means new or modified. NEO was originally called Antshares and this was modified into what is now known as NEO.
Digital Assets are programmable assets that exist in the form of electronic data. There are many forms of digital assets – just look at your bank statement and with the development of new blockchain technology, the digitization of assets can be decentralized, trustful, traceable, highly transparent, and free of intermediaries.
Users of the NEO blockchain are able to register, trade, and circulate multiple types of assets. It is also possible to prove the connection between digital and physical assets through digital identity. Assets registered through a validated digital identity can be protected by law.
Digital identity refers to information identifying individuals, organizations, and other entities when they are represented in electronic form. NEO uses a will a set of X.509 compatible digital identity standards. This set of digital identity standards, in addition to a compatible X.509 level certificate issuance model, will also support the Web Of Trust point-to-point certificate issuance model.
The NeoContract smart contract system is the biggest feature of the seamless integration of the existing developer ecosystem. This is great news for developers who do not need to learn any new programming language, but can use C#, Java and other mainstream programming languages in their familiar IDE environments (Visual Studio, Eclipse, etc.) for smart contract development, debugging and compilation.
NeoContract will have a separate white paper describing the implementation details.
NEO has a 100% pre-mine and a proof of stake model which remunerates users (in the form of GAS) if they hold NEO coins in a wallet.
Although NEO “distributed” coins through a crowdfunding event which allowed people to invest, because of the pre-mine, the token holding is highly centralised.
NEO was issued in 2 ways:
50 million NEO were sold via crowdfunding (and given to early contributors)
50 Million are managed by NEO council members.
On October 16, 2017 funds were released use for development and other purposes:
- 10 million NEO go to NEO developers and NEO Council members
- 10 million NEO as incentives for developers in the NEO ecosystem
- 15 million NEO invested in other auxiliary Blockchain projects used by NEO
- 15 million NEO earmarked for “contingencies”
Multiple millions of NEO are in the hands of the developers which is a cause of concern as this could cause dumping on the market and other actions that might affect the price or morale of the NEO economy.
Rewards for holding NEO
GAS has a function similar to “ether” with Ethereum and operates as fuel for using the ecosystem. The difference with NEO is that GAS was given its own special status as a token. (Similar to Steemit tokens, STEEM and Steem Dollars, SBD).
GAS is a Proof of Stake like incentive generated with each new NEO block. The release will entail 8 GAS per block reduce by 1 each year (So year 2 will be 7 GAS, year 3, 6 and so on). This will go until 100 million GAS are produced after which there will be no further GAS produced.
Best Neo wallets
There are various options to store NEO – Take a look at the best NEO wallets, including online, desktop, mobile, paper and hardware wallets for NEO & GAS cryptocurrency.
For more information on NEO – Read Here
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