What is NEO cryptocurrency? What exactly is NEO cryptocurrency?
What is NEO cryptocurrency? What exactly is NEO cryptocurrency?The new cryptocurrency was initially called Ant Shares, which was launched in 2014. Angu was founded by Dahe Eric Zhang. In 2016, it is said that in response to the growing interest in AntShares and the demand for blockchain solutions to meet the requirements of government regulators and private companies, Dahongfei and Eric established OnChain, a venture capital company providing blockchain financial services. Neo and OnChain are both located in Shanghai. Antshares announced on June 22, 2017 that it plans to rename itself the new smart contract economy in the coming months. On August 8, 2017, it announced that this process had been completed and updated the official website, documents, social media handles and network nodes.
What exactly is NEO cryptocurrency?
The new cryptocurrency is widely considered as "China Ethereum" because it, just like Ethereum's goal is to establish a platform DApps or decentralized applications can be established by allowing users to execute smart contract code on their blockchain. In fact, NEO blockchain issued a red pulse token (RPX) shortly after the first icon was renamed. The new cryptocurrency is often called "The Black Boy of Ethereum".
NEO cryptocurrency is the first decentralized, open-source cryptocurrency and blockchain platform launched in China. NEO describes itself as a distributed network with intelligent economy. The new cryptocurrency is mixing blockchain technology and digital identity "digital assets", and using "self managed smart contracts for digital assets" to achieve "smart economy" through distributed networks. The new cryptocurrency provides a framework for digitizing real assets, with the goal of making it available to everyone.
NEO cryptocurrency claims to be able to process more than 1000 transactions per second, with the goal of optimizing to more than 10000 transactions per second.
In addition to the NEO coin itself, there is another NEO platform called "gas", which was previously known as "ANC Antcoins".
Total NEO and gas supply
As mentioned above, NEO platform has two cryptocurrencies: new coins and gas
Distribution of new coins:
NEO coins will be used for block creation, network management, network change and other consensus requirements. This 100 million tokens were pre mined when the Genesis block was created.
Unlike other cryptocurrencies, the new cryptocurrency is "cannot be divided by fractions". The smallest unit of the new coin is the number one
NEO coin holders have the right to vote in the NEO ecosystem and to receive dividends in the form of gas.
Total maximum supply of new coins: 100 million
Circulation and supply of new coins: 50 million
One hundred million NEO coins are divided into two parts. The first part, 50 million NEO coins, will be distributed during the crowdfunding period.
The second part: 50 million NEO coins will be locked until October 16, 2017. The 50 million NEO coins are administered by the NEO Council to support the long-term development of NEOs. These NEO coins will never enter the cryptocurrency exchange for trading and will only be created for the long-term support of NEO projects. These tokens will be used as follows:
-Ten million tokens (10% of the total) will be used to motivate NEO developers and NEO Committee members.
-Ten million tokens (10% of the total) will be used to stimulate NEO ecosystem developers.
-Fifteen million tokens (15% of the total) will be used for cross investment in other blockchain projects, which are owned by the NEO Council and used only for NEO projects.
-£ 15m (15% of the total) will be retained as contingency.
In principle, the annual use of NEOs should not exceed 15 million tokens.
Allocation of gas tokens:
Gas token is basically a fuel token to realize NEO network resources. Users must pay a certain amount of gasoline tokens for any kind of transaction.
In addition, users who hold NEO in the official NEO wallet instead of any exchange wallet will receive free gasoline tokens as dividends.
Maximum supply of gasoline coupons: 100 million
Total gas fuel supply (as of October 12, 2017): 11675520
Circulation and supply of gasoline coupons (as of October 12, 2017): 8566998
When a new block is formed, gas is produced. Each block will generate 8 gas tokens. The interval between each block is about 15-20 seconds, generating about 2 million blocks every year. Each block will reduce 1 natural gas every year, and will continue to reduce until each block reduces 1 natural gas. According to this ratio, it will take 22 years to generate 100 million gasoline tokens.
Unlike the new coin, the smallest unit of gas that can be divided by fractions is 0.00000001
According to this release curve, 16% of the gas will be produced in the first year, 52% in the first four years and 80% in the first 12 years. These gases will be distributed proportionally according to the NEO holding ratio recorded in the corresponding address. The NEO coin holder can initiate the application transaction at any time and apply for these gas tokens at his holding address.
New Cryptocurrency Use Cases
The new cryptocurrency aims to digitize assets and store them as electronic data. With the NEO blockchain, the digitalization of assets can be decentralized, intermediary free, transparent, reliable and traceable. On NEO Blockchain, users can register, trade and circulate assets. Digital identity will prove the connection between tangible traditional assets and digital assets thus created. Assets registered through digital identity will be protected by law.
NEO has two forms of digital assets:
1. Global assets can be recorded in the system space and recognized by all smart contracts and clients.
2. Contract assets are recorded in the private storage area of the intelligent contract and need to be identified by compatible clients.
The digital identity is the same as mentioned above. The identity information of individuals, organizations and other entities will be securely stored in the blockchain in electronic form. Facial features, fingerprints, voice, SMS and other multifactor authentication methods will be used for authentication.
Smart contract was first proposed by cryptologist Nick Szabo in 1994. NEO has a decentralized, highly reliable, independent and tamper proof intelligent contract system called NeoContract.
The biggest difference between Ethereum and NEO is the 20th letter of the English alphabet of the new contract Unlike in Ethereum, where programmers need to learn the official language Solidity of Ethereum to program on the Ethereum platform, NEO is compatible with c++and Java, so programmers do not need to learn any new language.
How can NEO blockchain platform reach consensus?
This is one of the main technical differences between Ethereum and NEO. You may have heard about the work certificate and equity certificate as the consensus mechanism adopted by Bitcoin and Ethereum.
The problem with PoW is that it needs a lot of power to ensure network security. The method is to let nodes compete with each other and solve the password problem through hashing.
On the other hand, PoS enables verification nodes to bet their currency to verify transactions and encourage honest behavior, thereby reducing this power demand. However, if some nodes do not agree with the management decision, PoS still has the possibility of chain splitting - as we saw last year, which led to the birth of the Ethereum Classics.
The NEO blockchain uses the delegated Byzantine Fault Tolerant Alternative (dBFT) because its consensus mechanism provides lower power costs and eliminates the possibility of chain splitting, which makes it conducive to achieving the goal of digital real financial assets.
Participants in the system can designate certain nodes as bookkeepers. The bookkeeper node must maintain a minimum balance of NEO coins and meet certain performance requirements.
The bookkeeper's task is to verify the data blocks written to the NEO blockchain. If two-thirds of the nodes on the network can agree to a bookkeeper's blockchain version, reach a consensus and verify the proposed blockchain version. If you disagree, ask another bookkeeper to repeat the process.
Because this consistency only needs to be replicated on a subset of the network, it is said to be more effective than the classic Byzantine fault tolerance ". The network as a whole consumes less resources and can handle higher transaction volumes.
With dBFT and other key optimizations, Neo claims to be able to process more than 1000 transactions per second, with the goal of optimizing more than 10000 transactions per second
NEO is a great project with potential equal to (or even greater than) Ethereum. The new cryptocurrency runs on the proof of a specially developed mechanism of interest consistency, which can be said to be the best proof of the existing interest mechanism. The blockchain of NEO is also proved by quantum computer, which is better than other blockchain projects.
In addition, programmers can use C++, Java and other common programming languages to write smart contracts and Dapps. Programmers do not need to learn any coding language, such as solid state, just like Ethereum. This will attract more programmers, so we can see more blockchain projects developed on NEO platforms in the future. The more NEO is used, the greater the demand for NEO and natural gas, which may increase the price in the future.