- NEO is formerly known as ANTSHARES. They did their re-branding in the beginning of August 2017.
What is NEO?
Blockchain technology will make a huge impact on our society as a whole, but it is still uncertain how these changes will be introduced. Different projects in the cryptocurrency space are working toward a similar goal and one of those projects is called NEO. NEO is China’s Ethereum according to many people. However, the question is can it live up to the expectations?
NEO Smart Economy is the future of economy and trade where all economic and trading agreements are coded in programming languages using a Smart Contract that sits in a decentralized blockchain. This smart contract will execute when the conditions of that contract are met and no party can influence or change terms once they are agreed upon.
With this concept, there is no need to trust among parties as the Smart contract will do everything according to automated rules programmed in it.
NEO goes further than Smart Contract and wants to digitize everything – every asset (house, car, baseball bat) will have its own digital identity on immutable blockchain. Every asset can have multiple owners and not just one.
In this scenario, trading anything will be a breeze – there will be no need for 3rd parties to verify your ownership claim, to oversee the transaction or do any mediation between parties. All of that will be automated and executed by a Smart Contract.
NEO will not only provide digital identity to assets and things, but also to humans and institutions. This way governments and authorities will be able to enforce laws as they do today.
Rebranding to NEO
NEO has already gained a foothold in the country and as part of its rebranding, the platform is renamed as NEO from the end of August of 2017. This rebrand was part of a bigger move to put blockchain technology in China’s spotlight. The rebranding was launched at the Microsoft Headquarters in Beijing, and the new brand will be supported by Microsoft’s G.M. of Developer Experience. Furthermore, they partnered with Microsoft to create a consortium Blockchain called The Legal Chain in order to provide digital evidence storage services, including e-medical records, intellectual properties, digital contracts, etc.
The company has its own currency, which is found on most exchanges as NEO. It is important to note that the majority of stock exchanges across China use NEO. Also, owners of the NEO tokens can use them to collect dividends in other token named GAS.
The purpose of holding NEO is:
1) Voting rights on proposals that will always benefit yourself as a NEO holder. You are always the beneficiary of any changes to the network.
2) You generate “Gas” simply by holding NEO in your wallet (“Gas” was previously called “Antcoins”/”ANC”).
3) You collect a portion of platform transaction revenue through “Extra Service Charges”.
The GAS from synthesis and from ESC fee collection goes straight to your wallet in real time and based on the weighting of your NEO holdings.
There is essentially no utility volume on any network including Ethereum currently. However, as volume increases going forward with platform maturity and real world usage of the NEO network, it can be assumed that volume and these revenues will increase, potentially to a substantial level. Asset creation and alteration specifically should be a recurring function.
Economics of Gas charged for the Extra Service Charge: An equilibrium will likely be met. If Gas is cheap, more of it will be charged. If it’s expensive, less will be charged. Gas is divisible by up to 8 decimals, unlike NEO shares which are not divisible.
All of this sounds great. However, NEO will need to announce some big projects if it wants to become China’s Ethereum.
Meanwhile, the NEO team project is working together with Chinese officials in mapping a real-world asset utilizing NEO’ smart contract technology called Smart Contracts 2.0, and the project has also signed up several new startup companies as partners. They also plan to add other partners as the project progresses.
Moreover, the team behind the NEO has patented cross-chain interoperability. This patent is expected to benefit the project in the long run.
NEO and Chinese Regulation Authorities
Regulation in China is good for NEO in my opinion!
NEO will implement a set of X.509 compatible digital identity standards that will support Web Of Trust point-to-point certificate issuance model.
This will enable authorities to proof the identity of a public address, which will comply with the concept of Know Your Customer (KYC) that Chinese authorities want to enforce on ICOs. This might be a great advantage for NEO over any other platform as NEO is currently the only platform with this advantage. Other countries might follow with these regulations and NEO will be in compliance.
This might mean that any other startup with an ICO worldwide – who wants to comply with these regulations, shall look at NEO.
NEO vs. Ethereum
Ethereum is one of the most successful and famous digital currency platforms, and NEO aims to position itself as the Chinese version of Ethereum. NEO is much like Ethereum, but there are some differences. What are the similarities and differences between NEO and Ethereum? Let’s look into this step-by-step comparison between NEO and Ethereum.
There are several differences between Ethereum and NEO.
However, the key difference between these two lies in the technology behind them, particularly in the technology by which they are built, and more specifically, their programming language. Ethereum only functions with Solidity, which is both amazing and a drawback at the same time.
On the other hand, NEO is compatible with all coding languages, which means developers do not have to learn a new language for coding smart contracts. Industry experts believe that NEO’ compatibility with all coding languages is expected to generate a bigger following of users.
Both NEO and Ethereum are able to combine fees, smart contracts and DApps. However, it is still too early to tell whether NEO can effectively become the Ethereum of China and dominate the market.
Market Cap at 1 Billion USD
However, there are also several factors working in favor of NEO. OnChain is a parent firm of NEO, and it is one of the most reliable brands in China these days. The project has secured millions of dollars in funding. This should see it advance this technology for years to come. NEO/NEO’s market cap sits at over $1 billion right now, and with these funds, NEO has all the chances to develop its technology further. Although NEO seems to have every opportunity and reason to become China’s Ethereum over time, it is still uncertain if it can reach Ethereum’s level.
This is NEO Smart Economy, where all real assets can be digitized, traded with certainty using defined trading rules in Smart Contracts, and knowing who you are trading with using Digital Identity.