What is NEO?
NEO (NEO) is a decentralized, open source blockchain protocol and cryptocurrency, frequently called the “Ethereum of China.” Its advanced API functionalities allow people to create and own their own digital assets, as well as to earn dividends from these assets, much like stocks where the companies pay dividends to holders. The coin was previously known as Antshares, with its assets being called Antshares (ANS), and dividends payed out in a token called Antcoins (ANC).
History of NEO
NEO was launched in 2014 by Da Hongfei and was the first open source blockchain project to come out of China. It was known as Antshares until June 2017, when it was rebranded as NEO. The term “NEO” was chosen by developers because of its Greek etymology, representing the characteristics of “innovation, modernization and youth.” It has enjoyed tremendous success since its rebranding and became a top 10 cryptocurrency by market capitalization in August 2017.
How NEO Works
NEO is a very similar concept to Ethereum where it is much more than a simple cryptocurrency. In fact, it is almost an ecosystem by itself where people can trade digital assets like Bitcoin or real world assets freely and directly, without any central authority of third party intervention. It allows users to convert traditional assets (like Gold) and convert them into digital assets.
Using Smart Contracts 2.0, a concept popularised by Ethereum, the users can do smart transactions. NEOcoins are currency of the network and is used to own the share of a blockchain. NEOcoins are also used to earn dividends for owning the blockchain. Instead of Proof of Work (POW) or Proof of Stake (POS), both of which are resource hungry, NEO utilises Dual Byzantine Fault Tolerance (dBFT) algorithm to confirm transactions.
As a “second generation,” platform-based cryptocurrency, NEO offers multiple advantages over bitcoin.
- Government backed: The currency and the system has the support of Chinese government and that means it is a very stable and secure investment with almost zero chance of the company going bankrupt or out of business.
- Reputable Private Backers: Some of the private organizations who openly support Antshares are Microsoft, Alibaba, Wings and Bancor, among others.
- Patented Cross Chain Technology: This allows NEO to work with different blockchains. All cryptocurrencies have their own internal blockchains for transactions and NEO can access multiple such blockchains, allowing for the direct integration of many coins with its platform.
- Versatile Asset Management: Whether it is a digital asset or a real world asset, NEO allows users to map it to a digital identity within its network.
- Easy to Use: Using Smart Contracts 2.0 and a user-friendly API system, NEO makes it possible to write contracts without any knowledge in programming.
- Lightning Fast Transactions: Using Dockers, the NEO network is capable of conducting superfast transactions within the network.
- Quantum Security: Using Lattice based cryptography, NEO has been able to make its transactions secure at the quantum level.