What Is Neo? All You Need to Know About NEO

What Is Neo?

Neo describes itself as a ‘rapidly growing and dynamic’ ecosystem with the objective of serving as the cornerstone of a new economy where digital assets, identities, and payments all coexist.

When it first debuted in February 2014 under the name Antshares, this project was thought to be China’s first-ever public blockchain. Three years later, the open-source platform changed its name to Neo.

The team behind this project runs an EcoBoost campaign that’s intended to encourage individuals to create decentralized apps (dApps) and smart contracts on its blockchain, as well as a global community of developers that construct new infrastructure for the network and remove entry hurdles.

It is frequently referred to as the Chinese equivalent of the Ethereum network.

Who Is Behind the Neo Team?

Neo/Antshares co-founders are Da Hongfei & Erik Zhang. Both are presidents of the Neo Foundation, which are promoters of blockchain adoption. their own data. This entrepreneur believes that blockchain applications will eventually become mainstream.

Erik Zhang is the author of the Authorized Byzantine Fault Tolerance algorithm, which aims to prevent untrusted participants from participating in blockchain activities. This technology was later used in the Neo blockchain. He was also the lead developer of this network and was instrumental in the development of Neo 3.0, the next version of the project framework.

Antshares was renamed Neo in 2017 after the implementation of Smart Contracts 2.0. It saw a rapid rise globally as hundreds of new developers flocked to the blockchain. Neo management has begun offering NEO token incentives to organizations and individuals that have contributed to the success of the Neo platform. NeoEconoLabs and O3 Labs are the first organizations to join Neo.

Neo Blockchain and Smart Economy

NEO’s unique digital identity solution, combined with its support for digital assets and smart contracts, fuel the platform’s vision for a comprehensive smart economy. The project aims to build its own economic system through the establishment of a comprehensive and decentralized digital identity for every asset and node on the network. An active participant in the network undergoes a thorough identification process linking them to a traceable, real-world identity that is compliant with regulatory requirements such as Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. The network creates this digital identity through a combination of facial recognition, biometric data, voice recognition, and other multi-level verification mechanisms. This creates increased accountability that ultimately makes the entire system more secure.

By leveraging NEO’s identity system, network participants can register and trade a variety of assets on the platform. For example, a user can register a physical asset (such as gold) on the platform and create a unique digital representation of that asset, which is stored under the user’s digital identity. and protected by Chinese law.

Users can buy and sell different products or services with the benefit of a transparent and immutable transaction record, minimizing the interference of malicious actors. Essentially, NEO enhances the security and trust of consumers in the digital marketplace because physical assets or services traded on the platform can be effectively assigned digital identities. legal force.

NEO blockchain has the potential to further support the smart economy through the use of smart contracts. The registered and legally protected digital assets of platform users are traded using NEOContract, NEO’s powerful smart contract protocol. NEOContract has a number of key advantages, including high JIT and - perhaps most notably - the flexibility to use almost any programming language, including Enterprise scripting languages ​​such as Java, Python, C#, and JavaScript. Because NEO supports major programming languages ​​- unlike other popular smart contract platforms like Ethereum, which require developers to code in Solidity (its native programming language) - the Developers who are not familiar with Solidity or other niche languages ​​can more easily create smart contracts in the NEO network. This feature ultimately helps pave the way for faster and easier business and developer referrals.

Using smart contracts, NEO also uses the so-called NEO Advanced Protocol (NEP). Using NEP, NEO creates its own proprietary forms of fungible and non-fungible tokens (NFTs). NEO’s replaceable token is NEP-5, which is functionally similar to Ethereum’s ERC-20 token, while its non-fungible token is NEP-11, which functions similarly. like Ethereum’s ERC-721 token. Notable examples of NEP-5 token use include Ontology and Switcheo, and O3 Foundry uses NEP-11 to provide a decentralized application programming interface (dAPI) for NFT creation.

Finally, from October 2020, NEO announced a major update, which includes file storage rental features similar to those of STORJ or Filecoin.

Digital Assets

Digital assets are not only digital goods but also physical assets that are encrypted by transferring their value to the blockchain and issuing tokens for each asset. Tokenization creates a decentralized, trusted, traceable and transparent way to manage assets, with no intermediaries or associated costs.

Different assets can be registered, bought, sold, traded, or circulated by users. As assets are registered on NEO’s platform and given a verified digital identity and security, it also helps to protect those assets.

Digital Identity

Digital identity offers important, independently verified details about participating people, groups, and other digital entities. As our lives grow more digital, the security of personal information through blockchain, consensus, and encryption technology is crucial.

By creating encrypted private and public keys used for identity verification, NEO follows the Public Key Infrastructure standard as a reference for identity management. Facial recognition, fingerprints, voice, SMS, and multi-factor identification techniques can all be used to verify digital identities.

Smart Contracts

A smart contract is code that automatically executes transactions and agreements between different parties. Smart contracts eliminate the requirement for third-party involvement because the transfer is done automatically. Smart contracts also enable traceability, transparency, and irreversibility of transactions.

Neo 3.0

Neo seeks to promote the “smart economy” by connecting digital identities, smart contracts and digital assets. Neo 3.0 is an important step towards achieving this goal and will utilize the Byzantine Fault Decentralized Next Generation (dBFT) consensus mechanism, dBFT 2.0.

The Neo 3.0 Platform is designed to feature many modern innovations that increase Neo’s performance, usability, and scalability. These include an improved pricing model; advanced smart contract creation framework via Neo Virtual Machine (NeoVM); a simplified engineering architecture; an internal oracle system and many other innovative features such as Neo File Storage (NeoFS) and NeoID.

How does Neo work? dBFT and Neo Virtual Machine

Delegated Byzantine Fault Tolerant (dBFT)

Delegated Byzantine Fault Tolerance (dBFT) is a fault-tolerant Byzantine consensus technique that enables large-scale consensus participation through proxy voting. permission. NEO coin holders can choose which consensus node to support by voting. Through the BFT process, the selected set of consensus nodes forms a consensus and generates new blocks. Voting on the Neo Network happens in real time, not on a predetermined schedule.

NeoContract

It offers fast startup times and adaptability, ideal for small programs like smart contracts. Before launching the smart contract, NeoContract can generate a smart contract call tree using static analysis. Neo Node can dynamically defrag smart contracts using deterministic call trees to allow unlimited scalability, overcoming the “garbled effect” created by static fragmentation in blockchain systems normally.

NeoX

NeoX is a cross-chain compatible protocol. The NeoX protocol is divided into two parts: “cross-chain asset exchange protocol” and “cross-chain distributed transaction protocol”. NeoX enables cross-chain smart contracts, allowing a smart contract to execute different parts on multiple chains whether they work or fail.

NeoFS

NeoFS is a network storage mechanism that uses Distributed Hash Table (DHT) technology. NeoFS indexes data using file content (Hash) instead of file location (URI). Large files will be split into fixed-size chunks of data, distributed and stored across multiple nodes. The key problem with this system is that it has to strike a balance between duplication and reliability. NeoFS intends to resolve this conflict through token incentives and the installation of backbone nodes.

NeoQS

NeoQS (Quantum Safe) is a network-based cryptographic technique. Currently, quantum computers lack the ability to solve the Shortest Vector Problem (SVP) and the Nearest Vector Problem (CVP), which are considered the most reliable algorithms for repelling quantum computers.

Neo Virtual Machine (NeoVM)

In addition to the capabilities of dBFT 2.0, the Neo Virtual Machine is designed to enable the protocol to create, run, modify, and upgrade smart contracts to interact with the Neo ecosystem and other blockchain networks. NeoVM is a lightweight virtual machine with a universal compute framework designed to facilitate consistent communication across a series of smart contracts and nodes, and provide development support to software engineers who build software. build decentralized applications (dApps) on the Neo blockchain platform.

NeoVM is designed for enhanced security and scalability, and is designed to work in sync with Neo’s dBFT consensus mechanism and smart contract framework to drive network ecosystem growth overall and enhance the value of Neo. Neo’s smart contract protocol, NeoContract, is capable of running and managing smart contracts using most popular programming languages, including industry standards Python, Java, C#, and Python. JavaScript. This helps the system be used by almost any developer and encourages cross-platform functionality. Neo’s multi-language programming functionality contrasts with the programming functionality of smart contract leader Ethereum, which mainly uses its native programming language Solidity (not familiar to the majority of mainstream developers) for creating smart contracts.

Neo Governance

Through the election of a Neo Council, NEO token holders choose who is in charge of maintaining the Neo network. Rewards in the form of GAS tokens are given to both council members and voters.

By casting a vote in the Neo Council, which oversees the Neo Blockchain, NEO holders take part in governance. The Neo Council will be made up of consensus nodes and council members who offer services, keep the network active, and modify important blockchain parameters. Both council members and NEO votes will receive GAS prizes.

Source: Neo Smart Economy

NEO & GAS: A Dual Token Model

What is the NEO Token?

By casting their votes for the Neo Committee, which is made up of members and the consensus nodes that run the Neo blockchain, NEO holders can participate in governance. The Neo Committee offers specialized services, including keeping the network active and modifying crucial blockchain characteristics.

Tokens in NEO are indivisible and have a minimum unit of 1. This means that if you are making a withdrawal to your wallet from an exchange, you must do so in whole numbers. NEO cannot be divided into smaller pieces, which also makes it one of the rarest public blockchain coins.

At genesis, 100 million NEO were created, with around half of those being set aside by the Neo Foundation as incentives for the growth of the Neo ecosystem.

What Is the GAS Token?

In order to avoid the misuse of node resources, the Neo network charges GAS for the operation and storage of tokens and smart contracts. Network fees are allocated to consensus nodes while system fees are burned, providing a financial incentive for their services.

Five GAS tokens are generated in every block and distributed in three parts:

The minimum unit of GAS is 0.00 000001. To claim GAS tokens, no NEO staking is necessary. The claim feature found in the majority of Neo wallets enables you to quickly gather your GAS. Please be aware that not all exchanges provide GAS to users that have NEO on their platform.xw

Voters receive the majority of GAS as payment for taking an active part in network governance. If NEO holders want to take part, they must make sure they select a wallet that enables voting.

Source: Neo Smart Economy

Is NEO a Good Investment?

Neo has attracted some top investors, such as Alchemy Pay (ACH) and Shopify. It has many attractive features, such as low gas fees, outstanding blockchain technology, multiple languages ​​and interoperability. Perhaps most notable is the launch of Neoverse, a great vehicle for creating non-fungible tokens on the N3 platform.

Neo’s increased user-friendliness will inevitably lead to an increase in its price. If Neo can successfully execute the goals, objectives and features to be achieved, NEO will not only be the best buy choice for short term investments, but also a great cryptocurrency for HODL.

As always, do your own research before investing in any crypto.

How to own NEO

One way to own NEO is to go through a crypto centralized exchange, so the first step is to create a Gate.io account and complete the KYC process. Once you have added funds to your account, check out the steps to buy NEO on the spot or derivatives market.

News on NEO

In the past few years, NEO experienced a resurgence given the successful launch of N3, the most advanced version of the Neo blockchain.

The network used a phased approach to the migration of assets from N2 to N3 in order to verify that there were no significant flaws or issues with the process. N3 initially went operational on August 2, 2021.

After N3 was fully released, the project continued to be developed, and additional NFT projects were put online. A recent addition to the Neo ecosystem was the NFT store MegaOasis, which gave community members access to NFTs made by well-known artists and only available on the Neo network.

Useful References

For the latest updates about the NEO, you can visit:

• NEO’s Official Website
• Twitter
• Discord
• Reddit
• Facebook
• Medium
• Telegram

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