What You Need to Know About NEO

NEO is a blockchain platform and cryptocurrency that was founded in 2014. Here are some key things to know about NEO:

  • It aims to be a more regulatory-compliant blockchain that supports decentralized applications and smart contracts. NEO takes a unique approach of being compliant with regulations right from the start.
  • Unlike most cryptocurrencies that use proof-of-work mining, NEO uses a delegated Byzantine Fault Tolerance (dBFT) consensus mechanism, which can support higher transactions per second.
  • NEO has two tokens – NEO and GAS. NEO tokens represent ownership of the blockchain similar to shares, while GAS tokens fuel transactions on the blockchain like gas does in Ethereum.
  • NEO promotes itself as a platform for an eventual “smart economy” through digitizing real world assets via digital identities, smart contracts, and interoperability with legal systems.
  • Development is centered in China, although it has a global developer community. There were concerns in the past about its centralization in China but it has worked to expand globally.
  • Some of NEO’s challenges include continued competition from other smarter contract platforms like Ethereum, less decentralized development than other public blockchains, and lack of clarity around regulatory compliance in all jurisdictions.

NEO aims to be a regulated, scalable platform for next-generation financial applications using blockchain technology. Its vision of an integrated smart economy sets it apart from other blockchain projects.

Frequently Asked Questions About NEO

  1. What does NEO stand for?
    NEO stands for New Economy Openness. This name represents NEO’s vision of bringing digitized assets and smart contracts into the new economy.
  2. What is GAS on the NEO network?
    GAS is the cryptocurrency that fuels transactions on the NEO network, similar to gas that is used on the Ethereum network. It is used to pay transaction fees and run smart contracts.
  3. How is NEO produced?
    Unlike proof-of-work cryptocurrencies, NEO coins are generated entirely at the genesis block, so no more can be created. 100 million NEO were generated initially.
  4. What is the difference between NEO and GAS?
    NEO are coins that represent ownership of the blockchain. GAS coins fuel computations and operations of DApps and smart contracts in the ecosystem.
  5. Is NEO decentralized?
    NEO has been criticized in the past for being centralized in China. However, the NEO foundation is working to make it more decentralized by having validators and consensus nodes distributed globally.
  6. Does NEO use blockchain?
    Yes, NEO is a blockchain-based distributed ledger and cryptocurrency platform for developing decentralized applications.
  7. Can you mine NEO?
    No, unlike other cryptocurrencies, mining is not required on the NEO network since it uses the delegated Byzantine Fault Tolerance mechanism rather than proof-of-work.
  8. What programming languages are used to develop on NEO?
    NEO supports many common programming languages like C#, Python, Java making it easier for developers to work with.
  9. Is there a NEO wallet?
    Yes, there are many wallet choices for holding NEO assets including Neon Wallet, NEOPy, and offerings from Ledger and Trezor.
  10. Who created NEO?
    NEO was created by Da Hongfei and Erik Zhang and was originally launched under the name Antshares in 2014, later rebranding to NEO in 2017.

NEO Glossary

NEO: The cryptocurrency token that is integral to the NEO blockchain platform. It represents ownership of the blockchain.

GAS: The cryptocurrency “fuel” token that powers transactions and operations in NEO. Similar to Ether in Ethereum.

Proof-of-work: The consensus algorithm used by cryptocurrencies like Bitcoin that requires computational mining to validate transactions.

Delegated Byzantine Fault Tolerance (dBFT): The consensus algorithm used by NEO which uses voting among delegates/validators to add blocks rather than mining. Provides higher transaction throughput.

Genesis block: The first ever block of transactions on a blockchain. For NEO, the genesis block is where the 100 million NEO tokens were created.

Decentralized Applications (DApps): Applications that run on a decentralized peer-to-peer network rather than a centralized server. NEO supports development of blockchain-based DApps.

Smart contracts: Self-executing code run on blockchain that enforces agreement terms. NEO’s platform focuses on creating smart contracts.

Validators: The equivalent of miners in a delegated Byzantine fault tolerance system that vote to add and validate new blocks according to consensus rules.

Consensus node: A computer authorized to participate in adding and validating new blocks on the NEO blockchain according to the delegated Byzantine Fault Tolerance mechanism. Must meet technical requirements.

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