What is the Cryptocurrency NEO? Introduction to its Features
NEO is a cryptocurrency that is not very popular in the Japanese cryptocurrency community. Also known as the ‘Chinese Ethereum,’ let’s take a look at its features.
What is NEO
NEO is a blockchain platform based in China. Users can run ICOs and distributed applications (DApps) on its platform similar to Ethereum. That’s why it is known as the ‘Chinese Ethereum.’
Since NEO was launched after Ethereum, the problems presented in Ethereum are solved with NEO. The most significant example being transaction speed. NEO can process about 1,000 transactions per second. NEO has also provided a friendly environment to developers in its programming language. When using Ethereum, you must use a programming language called Solidity which can be difficult to learn.
The NEO platform uses NEO as its core currency. NEO is currently ranked 17th in total market capitalization on Coinmarketcap as of January 11th, 2019. (Provided by: coinmarketcap.com)
For NEO’s current price, please see the link below.
Feature of NEO
You can use Smart Contracts
Like Ethereum, smart contracts can be used on the NEO platform. Smart Contracts are a technology to automate contracts, which itself is not a new concept. A simple example of smart contract can be shown with a vending machine. “When a vending machine is given more than 100 Yen and a customer pushes the green tea button, green tea is served,” is a demonstration of a kind of smart contract. By incorporating smart contracts into the blockchain that is very difficult to tamper with, it will be possible to ensure that contracts are not cheated on by third parties.
In this way, by incorporating smart contracts into the NEO blockchain, it becomes possible to operate ICOs like Ethereum and run distributed applications (DApps).
You can check the NEO DApp List and see the kinds of DApps that are actually used on NEO.
Use GAS tokens for transaction processing
With NEO, users are charged transaction fees similar to Ethereum. The difference being Ethereum does not have a designated GAS token dedicated to pay for transaction fees. When remitting NEO or operating smart contracts, users will pay fees with GAS tokens. GAS tokens are often available at exchanges where NEO can bought and sold. You can also receive it as a reward just by holding NEO tokens.
NEO employs the consensus algorithm DBFT (Delegated Byzantine Fault Tolerant). With DBFT, the owner of NEO tokens selects a group called a book keeper by voting, and the selected group creates blocks. NEO’s DBFT takes about 15-20 seconds to generate blocks, which makes the transactions per second to be about 1,000. Ethereum on the other hand is about 15 transactions per second, thus NEO can handle roughly 16.7 times more transactions than Ethereum. As such, NEO users can enjoy more comfort than when using Ethereum.
Adopt cryptographic technology resistant to quantum computers
NEO adopts quantum computer resistant cryptographic technology. Quantum computers are expected to be put to practical use in the coming future. They are said to have an exceptionally high processing capacity compared to currently popular computers (strictly speaking, von Neumann type computers). The capabilities are vast in that they can easily decrypt the current mainstream cryptosystems, which were considered to be virtually indecipherable with conventional computers taking over an estimated 10,000 years to decrypt. Quantum computers are not a threat as it will still be long until they are put to practical use. Interestingly, NEO adopts a cryptographic technique called NeoQS (Quantum Safe) based on the concept of quantum computers where processes are very difficult to decipher even with quantum computers.
NEO’s platform is very developer friendly. The Ethereum blockchain platform has large barriers for developers. Developers must learn the programming language Solidity before they can use Ethereum. Solidity is not a common programming language, it is a proprietary language used to run Ethernet’s EVM (Ethereum Virtual Machine). In contrast, NEO can handle the following programming languages:
Smart contract compiler and IDE plug-ins:
C # / VB.Net / F #, Visual Studio
Java / Kotlin, Eclipse
C / C ++ / GO
Python / Ruby
From the NEO Whitepaper (Japanese Ver.) “
These programming languages are generic and are easier to handle for many developers compared to Solidity.