Referring to some names such as Da Hongfei, City of Zion, "China's Ethereum", you can immediately imagine NEO Blockchain. A blockchain platform desires to build a smart economy.
At the end of May 05, the project announced NEO 2019 launch plan around June 3.0. This update will introduce improvements both in network and NEO economic model changes.
In this article, we will learn about NEO Blockchain, its NEO and GAS tokens, and what to expect, our investment opportunities in this NEO 3.0 upgrade.
- 1 What is NEO?
- 2 NEO characteristics
- 2.1 What is NEO Blockchain outstanding? (What is the difference of NEO Blockchain?)
- 2.2 NEO consensus mechanism?
- 2.3 NEO's Smart Contract?
- 2.4 Token standard on NEO Blockchain
- 2.5 Types of fees on the NEO Blockchain
- 2.6 Compare NEO with other Blockchain platforms
- 2.7 NEO dApp
- 2.8 Other outstanding information of NEO Blockchain provided by team dev
- 3 What are NEO Blockchain tokens / coins?
- 3.1 NEO Coin
- 3.2 GAS Token
- 3.3 What is the governance mechanism through NEO & GAS's Dual Token system?
- 4 ICO projects on the NEO Blockchain platform?
- 5 Copper storage wallet NEO, GAS
- 6 NEO & GAS copper trading platform
- 7 The future of NEO Blockchain?
- 8 How to invest in NEO?
- 8.1 Demand for buying NEO Coin
- 8.2 Demand for selling NEO Coin
- 8.3 How to invest in NEO Coin?
- 8.4 Demand for buying GAS
- 8.5 Demand for selling GAS
- 8.6 How to invest GAS Token?
- 8.7 Opportunity to invest in NEO 3.0 (What to expect in NEO 3.0)?
- 9 Conclusion
- 10 F
What is NEO?
What is the NEO Blockchain?
NEO is a Blockchain Platform.
According to the definition of team Dev
NEO is a distributed network for the smart economy. This is an open, community-driven project.
In the NEO ecosystem, the dev team uses the power of Blockchain technology and digital authentication technology to digitize assets and manage it through smart contracts.
By using a distributed network, NEO's goal is to create a Smart Economy.
According to the definition of Coin98
NEO is a network that uses Blockchain technology to create the infrastructure framework.
On top of that, developers can leverage NEO's Blockchain technology to build dApps that directly serve the actual needs of users to create a Smart Economy. ).
The NEO Blockchain is likened to China's Ethereum.
NEO Ecosystem's Smart Economy components include:
- Digital Assets.
- Digital Identity.
- Smart Contract.
Let's take a closer look at these components and their correlation below.
History of the formation and development of NEO
NEO (formerly known as Antshares) was founded by Da HongFei and Erik Zhang in June 6.
In June 06 Antshares was renamed NEO.
The name NEO is derived from Greek. "Νεο-" means new, modern and youthful. This is also the goal and vision of the founding team when they want to turn NEO Blockchain into a Smart Economy.
Here are some of NEO's development milestones
06 / 2014 Month: Antshares was founded by Da HongFei and Erik Zhang.
06 / 2015 Month: Open source of Antshares is posted on GitHub.
09 / 2015 Month: White Paper is officially announced.
11 / 2015 Month: Testnet launch.
04 / 2016 Month: DBFT consensus mechanism was introduced.
10 / 2016 Month: Official Mainnet.
11 / 2016 Month: VM antshares are published.
05 / 2017 Month: NEO technical documentation website launched.
06 / 2017 Month: Antshares officially changed its name to NEO.
08 / 2017 Month: NEO Enhancement Proposals are released.
10 / 2017 Month: Token standard NEP-5 Token was developed.
10 / 2017 Month: Red Pulse is the first project to issue NEP-5 Token on the NEO Blockchain.
12 / 2017 Month: "NEO Sponsor Giveback Plan" is started.
01 / 2018 Month: NEO hosts the first DevCon in San Francisco.
07 / 2018 Month: NEO started to launch decentralized network.
07 / 2018 Month: NEO 3.0 is under development.
02 / 2019 Month: The 2nd DevCon was held in Seattle.
03 / 2019 Month: NEO organizes Game Conference in Tokyo.
06 / 2019 Month: NEO upgraded dBFT 2.0
- DevCon is a Global Developer Conference initiated and hosted by NEO Blockchain.
- Enhancement Proposals is a document written by NEO to provide to the NEO community. Which describes the features and activities inside the NEO Blockchain.
NEO Enhancement Proposals or NEP is the name of the later NEP standards. For example, we often hear NEP-5 (standard Token), NEP-6 (wallet standard) ..
Does NEO ecosystem currently consist of components?
As I mentioned above, inside of NEO ecosystem, there are 3 components: Digital Asset, Digital Identity and Smart Contract.
The combination of these components makes up the Smart Economy.
Digital assets are defined by NEO as those that can be programmed as electronic data.
Based on Blockchain technology, we can help these digital assets have decentralized, reliable, transparent, traceable, or neutral properties.
The NEO Blockchain infrastructure supports various types of digital assets. In particular, users can register, transact, transfer and receive digital assets together easily.
According to NEO, these types of assets are also protected by law.
Digital Assets are divided into 2 types: Global Assets and Contract Assets
- Global Assets: can be recorded on the system and validated by Smart Contract as well as customers.
- Contract Assets: is recorded in the Private Storage of Smart Contract and requires the customer to be compatible with it to recognize it.
These Contract Assets must adhere to certain standards to be compatible with most customers.
So how to connect and authenticate real-world assets with digital to create reliability with users who own such Digital Assets?
NEO's solution is Digital Identity - digital authentication technology.
This digital identification technology will be responsible for confirming information of individuals and organizations that own assets that want to convert it into digital assets.
So how does NEO Blockchain solve the above problem?
It is the PKI (Public Key Infrastructure) X509 standard, which helps create a digital certificate set. Identity verification will be performed including authentication through facial features, fingerprints, voice, SMS and other methods.
NEO's smart contract is Neo Contract - one of the most important features of the developer ecosystem.
They also do not need to know many new programming languages, but only need to know C #, Java, Python to create their Smart Contracts based on NEO.
What is NEO Blockchain outstanding? (What is the difference of NEO Blockchain?)
In addition to the three main factors that make up the Smart Economy of the NEO Blockchain mentioned above, we also have a number of other important components in the NEO ecosystem, including: NeoX, NeoFS, NeoQS.
NeoX is a set of protocols that allow cross-chain interaction. It consists of:
- Cross-chain Assets Exchange Protocol - Cross-chain Asset Transaction Protocol: Allows expansion of the exchange protocols. And allow multiple people to engage in digital asset trading on Cross-chain (different chains).
- Cross-chain Distributed Transaction Protocol - Cross-chain delivery protocol: Steps in a transaction can be performed on different chains, but it still ensures the integrity of the transaction.
- NeoFS is a distributed storage protocol based on Distributed Hash Table (DHT) technology. In particular, large data files will be divided into sections in data blocks. They are then stored on different nodes.
The problem is how to create credibility with this data? NEO Blockchain solves this problem by using incentive mechanism of Token Economy.
You can simply imagine: With data files that require low reliability, they will be "stored", accessed in a free or almost free manner. bigger and require more reliability, it will be supported by important Nodes, and of course will have to pay higher fees.
- NeoQS (Quantum Safe) is a mechanism that protects the NEO Blockchain network from attacks by quantum computers. This is a network-based encryption mechanism.
NEO Seed Project
This is one of the parts I want to talk about when talking about the NEO ecosystem.
They identify themselves as a Blockchain platform, with the goal of building a smart economy. Certainly developing dApp decentralized applications to serve users will need to be very focused.
So, how can NEO quickly get high and quality dApp?
This requires NEO Blockchain to attract a large number of quality developers.
They solve this problem through the NEO Seed Project.
The goal of the program is to programmers around the world. With projects included in NEO Seed, they will receive both physical and material support (NEO, GAS Token) to develop the best for their dApp.
In NEO Seed, there are programs:
- Blockchain Workshop.
- Blockchain Programing Day.
- Testing dApp on Testnet. NEO will provide the amount of NEO, GAS needed for projects to test.
Developers interested in this NEO Seed Project can learn more here.
NEO consensus mechanism?
The two consensus mechanisms we see today are PoW and PoS.
According to NEO's dev team, both of these mechanisms have their weaknesses. PoW consumes power and energy to authenticate transactions. Meanwhile PoS makes the Blockchain network split (Fork).
NEO's blockchain uses the Delegated Byzantine Fault Tolerance (DBFT) consensus mechanism. This is considered a solution for distributed systems. It solves the problems of PoW and PoS.
With this mechanism, NEO can reach 10,000 transactions per second, reduce power consumption costs as well as eliminate the possibility of Blockchain being split.
NEO's Smart Contract?
The role of Smart Contract is to help automatically execute the programs, terms and rules within the Blockchain ecosystem.
The NEO Blockchain also has its Smart Contract, called Neo Contract. With having smart contracts and being born at the time that people started mentioning Ethereum. Therefore, many people still consider NEO to be China's Ethereum.
Smart Contract NEO 2.0 was launched in July 07 with the following upgrade features: high certainty, high concurrency and scalability.
Types of smart contracts since NEO 2.0 include validation contracts, functional contracts, and application contracts.
Some characteristics of Neo Contract 2.0 Smart Contract in NEO Blockchain are as follows:
- Allows programmers to write smart contracts in any programming language.
Compared to Ethereum, developers can only write in Solidity. On NEO Blockchain, only need to know C #, Java, Go languages, programmers can start writing smart contracts.
- The NEO VM is a virtual server used to code Smart Contracts. NEOVM uses a lightweight virtual server that has a short startup time to consume less resources.
Token standard on NEO Blockchain
When it comes to Ethereum, we often refer to ERC-20 Token (Ethereum Request for Comments). This is one of the standards for tokens issued on Ethereum's Blockchain platform.
The NEO Blockchain also has a set of NEP-5 standards.
In particular, NEP stands for NEO Enhancement Protocol, while No. 5 is a modified version of NEP.
NEP-5 is the standard that projects need to follow when they want to issue their Token on NEO platform.
Tokens issued according to NEP-5 standards must comply with the following parameters: Total supply, Token Name, Token Symbol, Decimals, Account balance and token amount information to be moved to another address.
Types of fees on the NEO Blockchain
On NEO's Blockchain, include the following fees:
Smart Contract Fees
Fee for issuing smart contracts. According to the information in NEO's Whitepaper, the issuers of smart contracts will not be charged for the first 10 GAS.
The amount of this charge is greater than 10 GAS they will have to pay. To learn more about Smart Contract Fees, see more here.
Fee for token transfer transactions within NEO's Blockchain network. see more here.
When making transactions on the trading floor, brothers also bear additional withdrawal fees, transaction fees collected by the exchange.
Compare NEO with other Blockchain platforms
Other outstanding information of NEO Blockchain provided by team dev
Which markets does NEO focus on?
The project does not focus on a specific area. NEO has a large community of developers in Europe, North America, South America and Asia.
How does NEO attract developers to build dApps on the NEO Blockchain?There are already many dApps built on the NEO mainnet. Moreover, the project is still promoting NEO Eco Boost and according to the dev logo, this is one of the trump cards of NEO Blockchain.NEO's plan with DeFi
There are currently 3 DEX exchanges and the standard STO token operates on the NEO network. Activities that can be done on the Ethereum Blockchain still work on NEO.
What are the 3 most prominent features of NEO to compare with Ethereum?
The first public chain uses the dBFT algorithm
The first public chain uses authorized consensus nodes.
The first chain works for the purpose of developing a smart economy.
Where does the NEO Foundation seek profits?
NEO is a non-profit organization, tokens held by the platform will be used to cover costs.
What are NEO Blockchain tokens / coins?
Within the NEO Blockchain ecosystem, there is a management mechanism to ensure that those internal parts are motivated to operate and contribute to the NEO network. This management mechanism is based on Token Economic.
Before talking more specifically about the management mechanism of NEO, I want to talk about the token system inside NEO. Including NEO Coin (NEO) and Neo Gas (GAS).
What is NEO Coin?
NEO is the Native Token within the NEO ecosystem.
According to the definition of team dev, it is the coin representing the network administration rights within the NEO network.
One of the features of NEO is that it cannot be split. Thus its smallest unit is 1 NEO.
Basic information about NEO Coin (Native Token)
- Ticker: NEO
- Blockchain: NEO Blockchain
- Token Type: Governing Token
- Asset Information: c56f33fc6ecfcd0c225c4ab356fee59390af8560be0e930faebe74a6daff7c9b
- Total Supply: 100,000,000 NEO
- Circulating Supply: 70,538,831 NEO
Purpose of use NEO Coin
- Use NEO to vote for Bookkeeping or change the parameters inside the NEO Blockchain network.
- When projects issue their tokens on the NEO platform, they will raise capital in NEO.
For example, an ICO like Phantasma (SOUL) in May 05 only allows investors to buy with NEO.
- NEO is also used to provide developers of projects to testnet on NEO.
NEO Coin exchange rate
What is NEO GAS Token?
GAS (or Neo Gas) is also a Native Token within NEO's network.
Basic information about GAS Token
- Ticker: GAS
- Blockchain: NEO Blockchain
- Token Type: Utility Token
- Asset Information: 602c79718b16e442de58778e148d0b1084e3b2dffd5de6b7b16cee7969282de7
- Total Supply: 17,190,378 GAS (Max 100,000,000 GAS)
- Circulating Supply: 10,128,375 GAS
Purpose of using GAS Token
GAS is considered as Fuel within the NEO Blockchain.
GAS Token is used for the following purposes:
- Use GAS to pay Smart Contract release fee.
- Use GAS to pay for activities and store Token.
- Use GAS for use in dApps on NEO.
- GAS is also used to provide programmers of projects to Testnet on NEO.
From there it motivates the bookkeepers and prevents the abuse of resources of the system.
And unlike NEO, GAS is a divisible token. Its smallest unit is 0.00000001 GAS.
What is the governance mechanism through NEO & GAS's Dual Token system?
In this section, I will talk about the governance mechanism within the NEO Blockchain network.
The Dual Token mechanism between NEO and GAS is the main factor that creates the power of the NEO management system.
NEO is distributed in half through crowdfunding. The remainder will be used for NEO's long-term development goals and will not enter the exchange.
GAS Token is created when each new Block is born. The rate of GAS Token generated per NEO Block decreases year by year. After 44 million blocks are released, there will be 100 million GAS.
On-Chain Administration: Roles represent administrative rights within the network. NEO holders (owners and managers of the network) will manage and direct the development of the network through their voting decisions.
As stated above, GAS is generated when each Block is completed. Since then, GAS Token is used for activities, features within NEO's network in accordance with its Utility Token function.
Off-Chain Administration: The NEO Council will be responsible to the community to promote and develop the NEO ecosystem in accordance with its goals.
NEO development directions are chosen through Voting using NEO.
ICO projects on the NEO Blockchain platform?
Copper storage wallet NEO, GAS
NEO and GAS copper wallet storage solutions in the NEO Blockchain ecosystem are quite diverse. Including mobile wallets, wallets for PC or web-based wallets.
Here are some types of wallets that support storage of NEO, and GAS.
Hard wallet: Ledger Nano S
Desktop Wallet for PC:
- Wallet for mobile phone: O3 Mobile Wallet.
In addition, you can also store NEO, GAS right on the floor wallets of exchanges for NEO, GAS transactions.
NEO & GAS copper trading platform
NEO is currently in the top 18 coin CoinMarketCap about market capitalization.
GAS is also ranked 161 in market capitalization on CoinMarketCap. You can trade GAS on Binance, OKEx, Huobi, Kucoin.
The future of NEO Blockchain?
The future from now until NEO 3.0 in 2020
On June 03, 06, the NEO Foundation released a notice of the Mainnet upgrade. Accordingly, NEO 2019 will be launched in June 3.0.
But as of June 06, this could be the first milestone for this NEO 2019 upgrade.
Specifically in this upgrade, there are some noticeable points:
- The new dBFT 2.0 consensus algorithm makes NEO's Mainnet more stable.
- Transfers with less than 0.001 GAS in-network transfers will be of low priority and cannot be larger than 1024 bytes. Transactions are of high priority when there is a transaction fee of 0.001 GAS.
- For Transaction sizes larger than 1024 bytes:
The minimum transaction fee to pay is (Transaction size - 1024) * 0.00001 GAS + 0.001 GAS
Transactions with a size smaller than 1024 bytes will be free. If you want to move faster, you have to increase the fee.
- With the implementation or implementation of a smart contract, transactions smaller than 1024 will still be charged a minimum of 0.001 GAS.
For larger sizes, the fee is calculated according to the formula (Transaction size - 1024) × 0.00001 + 0.001 GAS.
- Claim Transactions are free of charge.
Thus, with this upgrade, most transactions on NEO have been charged and paid in GAS. This will reduce the system spam as most transactions are free as before. The system will also be more stable.
The fact that GAS is used as the transaction fee and the transactions are mostly charged, will cause the demand for GAS ownership to increase the transaction fee. This will affect the price of GAS Token.
Which direction of NEO Blockchain in the future is further?
NEO's goal is to become the most developer-friendly blockchain and widely used by businesses. Currently, the dev team is still developing the stablecoin that runs on the NEO Blockchain and will soon release in the future.
In addition, the NEO team also confirmed no rumors that NEO had sold 30 million tokens before updating to NEO 3.0. Nor is it NEO backed by the Chinese government.
Over the next 06 months, NEO will focus on developing NEO 3.0, improving infrastructure and ecosystems. At the same time, the dev team is still improving the dApp ecosystem and the Defi ecosystem.
The information in this section is provided with the NEO Blockchain team during the AMA meeting with the Coin98 community on June 22, 6.
How to invest in NEO?
Demand for buying NEO Coin
Based on the purpose of NEO, we see that it is used for the right purpose when used to Voting for updates and changes proposed within the foundation of NEO Blockchain.
Voting does not occur often, based on the demand to buy and use for Voting purposes will not be frequent.
In addition, one of the factors influencing NEO buying demand is the fact that projects that issue tokens on the NEO platform make NEO capital calls.
At that time, the demand for NEO ownership to participate in the ICO will increase. To determine this point, you can easily see when there is a Blockchain project to issue tokens and make capital calls in NEO.
For the purposes mentioned above, the demand for NEO purchases does not increase steadily but will change from time to time.
Demand for selling NEO Coin
It is very clear that the NEO coin needs to sell when projects developed on the NEO Blockchain platform sell out to fund their project.
This will create a cycle of NEO Coin when projects receive NEO through Crowdfunding, after which this amount of NEO is sold to the market.
How to invest in NEO Coin?
If you consider investing in a token / coin to simply buy at a low price and sell at a higher price to take profit, the key point I always want to remind you is to observe the buying demand, the demand for that currency. When is the time of that need? When will that demand end? From there to know when is a good time to buy and sell.
Based on the buying needs, the demand for selling above will surely make you feel the time to invest and take profits.
Demand for buying GAS
Let me remind you a little bit about the purpose of using GAS. It is the Utility Token within the ecosystem of NEO. GAS is used to issue Smart Contract, store Token and use in dApp applications running on NEO Blockchain.
Let's take a look at these usage needs:
Use GAS to issue Smart Contract, store and operate Token
The first question is: Who will be in need of issuing Smart Contract, or Token-related activities. They are developers who develop their projects on NEO's Blockchain platform, so how many projects are planning to develop on NEO, how do they need GAS?
We can look at past numbers to understand more about the aforementioned needs.
On the ndapp.org page (where NEO-based dapps are aggregated), there are 68 projects to date. Not to mention a number of projects that have left NEO and moved over to another Blockchain ecosystem.
Compared to the number of dApps of other similar blockchains targeting dApps and smart contracts such as Ethereum and TRON, this number is too small.
From there, you can deduce the actual purchase needs of GAS Token when used for paying on the NEO platform.
In addition, a part of GAS is also used to give developers Testnet when they want to develop their projects on NEO.
Where does this amount of GAS come from?
The dev team will draw from the reserves for future NEO ecosystem development. When receiving GAS, in addition to using Testnet, a part of which will be sold. This directly affects GAS's traffic volume, which in turn affects its price.
In what direction, you can answer yourself.
Demand for selling GAS
As I analyzed above, some of GAS's selling demands:
- Developers receive GAS from the dev team, after the testnet is completed, they will need to sell part.
- GAS is used to pay fees inside the NEO Blockchain, which can be reintroduced into the circulation market.
How to invest GAS Token?
Based on the buying and selling demand of GAS, you can imagine the price trend of this GAS.
You should dig deeper and make your own judgment and investment decisions.
Opportunity to invest in NEO 3.0 (What to expect in NEO 3.0)?
NEO 3.0 has been very much reminded by the community since the announcement in late May 05. There is even a fake website to cheat users who lack knowledge.
Here is some information I want to give you about NEO 3.0
Some noteworthy upgrades in NEO 3.0
Upgrade to Delegated Byzantine Fault Tolerance or dBFT 2.0
This mechanism has been upgraded since June 03, 06.
With the dBFT mechanism, a node is selected through voting, from which the Consensus nodes will create and validate the blocks. This upgrade will make NEO's system more stable.
As I mentioned above, the price model has changed significantly, the price of transactions and smart contract issuance is no longer free as before.
Access to Internet data sources
In NEO 3.0, Smart Contracts can access Internet data sources while being executed.
As a result, dApp developers can build richer applications based on external data.
P2P Protocol will be improved to increase TPS numbers and make the network more stable.
The structure is simpler
On NEO 3.0 all assets will be created in a smart contract. Including NEO and GAS.
If you link to the above section on the conditions for issuing smart contracts, which tokens will need to be used, you can predict how their upcoming needs will be.
There are also some upgrades on NeoVM, NeoFS, NeoID.
So which investment opportunity is for us at NEO 3.0?
Transaction fees change, most transactions and smart contract issues are charged with GAS. From there, the direct impact on the need to buy GAS ownership and of course will affect its price.
NEO 3.0 will also make the network more stable. Providing applications with access to Internet data also helps developers to be more interested in building their dApps on the NEO platform.
As the number of dApps increased, the demand to buy NEO and GAS to release dApp (developers) and buy to use in dApp (user) also increased. This will also affect prices.
Above are the predictions about the future of NEO Blockchain that we can easily see.
However, the plan is one thing and executing it is another. If we look at the number of dApps and ICO projects released on the NEO Blockchain, we will see a huge difference between NEO and TRON, EOS or Ethereum.
NEO was once valued at ~ $ 160 and its capitalization is more than 100 billion dollars, in the top 10 CMC in MarketCap. Its price is currently dividing more than 11 times from the peak.
Will the dev team update in the upcoming NEO 3.0 help this "Ethereum of China" project regain its performance as it did in early 2018.
Let's wait until June 06 to see what the NEO team will bring to NEO 2020.
Above is the article of Coin98 about NEO Blockchain. Hope you get a lot of useful information about this project.
The article will be updated regularly based on the dev team updates about NEO.
If you have any questions about NEO, don't hesitate to comment below this article. Or go directly to the channel / group of Coin98 Let us discuss and share about NEO's investment opportunity!
Updated: June 22, 06, Coin98 had a live AMA with the NEO dev team. You can watch the AMA again here.
See you in the upcoming posts!