What is NEO Cryptocurrency?

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The NEO Cryptocurrency

What is NEO Cryptocurrency?

Founded by Da Hongfei, NEO is China’s first open source blockchain that uses blockchain technology to produce a smart contracts ecosystem. Like Ethereum, the NEO cryptocurrency enables developers to build decentralized applications (DApps) on its platform. However, innovations such as:

  • The NeoContract
  • Digital Identity
  • Digital Certificates
  • Superconducting Transactions
  • Delegated Byzantine Fault Tolerance (dBFT) Consensus Mechanism
  • Quantum-Computer-Proof Technology – NeoQS
  • Cross-chain Interoperability Protocol – NeoX

…are all designed to improve upon the Ethereum model to produce a smart economy.

NeoContract

NeoContracts, the smart contracts of NEO, provide developers with the ability to create decentralized applications on the NEO blockchain. These contracts are stored on the blockchain and are executed automatically based on the predefined obligations within the contract. Unlike smart contracts on the Ethereum blockchain, which exclusively support the Solidity programming language, NeoContracts offer greater flexibility by allowing developers to write contracts using intuitive programming languages such as C#, Java, and Go. This versatility opens up new possibilities for developers and promotes wider adoption of smart contract technology within the NEO ecosystem.

Digital Identity, Digital Certificates & Superconducting Transactions

In addition to enabling the development of decentralized applications through NeoContracts, the NEO cryptocurrency offers the capability to digitize real-world assets. This means that physical assets can be represented as digital assets on the NEO blockchain, allowing for the transfer of ownership among multiple parties. This process is facilitated by NEO's implementation of digital identity, digital certificates, and superconducting transactions. Digital identity refers to electronic representations of individuals, organizations, and entities, which enables the association of digital assets with real-world entities. To ensure legitimacy, a digital identity must be legally accredited through the widely accepted Public Key Infrastructure (PKI) system. Moreover, the NEO team aims to protect digital assets registered under validated digital identities through relevant domestic laws.

NEO's use of digital certificates further promotes the exchange of digital assets by addressing the issue of trustworthiness among users on the network. Through the utilization of digital certificates, anyone can register and trade assets on the NEO blockchain while enjoying the regulation and protection provided by domestic legal frameworks.

The NEO cryptocurrency also employs superconducting transactions, which enable trustless digital exchanges. This mechanism allows buyers and sellers of digital assets to be matched off-chain on a centralized exchange, while the actual transaction settlement occurs on the NEO blockchain itself. The intention behind this approach is to enhance the efficiency of transactions conducted on the NEO blockchain, offering a seamless and secure experience for users.

Delegated Byzantine Fault Tolerance (dBFT) Consensus Mechanism

NEO’s dBFT consensus mechanism enables widespread user participation on the NEO network through the use of proxy voting. Users that hold the NEO cryptocurrency are able to vote for a bookkeeper (or node) that they support. The role of bookkeepers is to validate blocks that are written into the NEO blockchain. A consensus requirement of two-thirds amongst bookkeepers must be met before a block can be validated and added to the blockchain. The dBFT consensus mechanism makes use of digital identity technology, thus, bookkeepers on the NEO network can be individuals or institutions.

Quantum-Computer-Proof Technology (NeoQS) & Cross-chain Interoperability Protocol (NeoX)

NeoQS (Quantum Safe) is a lattice-based cryptographic mechanism that is intended to stop the NEO blockchain from being compromised by quantum computers.

NeoX is a protocol that implements cross-chain interoperability, this means that the NEO network provides a means for digital assets to be exchanged across different blockchains. NeoX can be divided into two parts: cross-chain assets exchange protocol and cross-chain distributed transaction protocol. The cross-chain assets exchange protocol ensures that parties engaging in a transaction can do so across different blockchains. Whilst the cross-chain distributed transaction protocol makes cross-chain smart contracts a possibility, this would mean that differing functions of a smart contract could be executed on across multiple blockchains.

The NEO Cryptocurrency & NeoGas (GAS)

Supply of the NEO cryptocurrency is in circulation and can be used in the exchanging of digital assets on the NEO blockchain. The NEO cryptocurrency is limited to a total of 100 million units, and gives NEO holders the right to vote for bookkeepers. NEO holders are also entitled to dividend payments in the form of GAS tokens.

GAS tokens are responsible for driving the NEO network; the network charges users for the operation and storage of tokens and smart contracts. This fee is used as an incentive measure, to encourage bookkeepers to maintain and prevent abuse of the NEO network

Governance Mechanism

NEO implements a dual governance mechanism consisting of on-chain governance and off-chain governance. On-chain governance involves NEO cryptocurrency holders, who act as network owners and oversee the management of the NEO network through proxy voting for bookkeepers. This ensures that stakeholders have a voice in the decision-making process. On the other hand, off-chain governance is carried out by the NEO Council, comprising the project's founding members. The NEO Council is dedicated to fostering the growth and advancement of the NEO ecosystem, and it remains accountable to the NEO community. Through its off-chain governance efforts, the NEO Council plays a crucial role in promoting and developing the platform, ensuring transparency and community engagement.

Conclusion

NEO has emerged as a prominent player in the world of cryptocurrencies and blockchain technology, offering unique features and capabilities that set it apart from its competitors.

With its focus on creating a smart economy through digital assets, digital identity, and smart contracts, NEO holds the potential to revolutionize various industries and drive widespread adoption of decentralized applications.

As the platform continues to evolve and expand its ecosystem, investors and developers alike should keep a close eye on NEO's progress and the innovative solutions it brings to the table. The future of NEO crypto is undoubtedly filled with possibilities, making it an exciting asset to watch in the ever-changing landscape of digital currencies.

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