NEO: a player in the smart economy sector
NEO network is a crypto project creating a “smart economy” to manage digitized assets based on smart contracts. As this might sound a bit complex, in a nutshell, this project strives to contribute to the world of the smart economy by offering viable blockchain-based solutions in financing. As stated on the NEO website, the goal of its community-driven platform is to “leverage the intrinsic advantages of blockchain technology to realize the optimized digital world of the future.”
The history of NEO
Founded in 2014 by Da HongFei and Erik Zhang, this platform was first known as Antshares. The project’s white paper was released in the following year, and the blockchain was open-sourced on GitHub. After a rebrand in 2017, the project was renamed Neo, standing for ‘new’ and ‘modern’ in Latin. With this rebranding, the project wanted to communicate its modern outtake in the emerging world of the smart economy.
The history of NEO includes a few interesting updates on the blockchain. In 2018, Neo 3.0 or N3 was proposed, which saw its mainnet launch in August 2021. This upgrade leverages the protocol by numerous improvements making the protocol more powerful and the design more modulated.
NEO software trivia
The smart economy is a combination of digital assets, digital identity, and smart contracts, NEO’s blockchain is built to enable these three sectors to work in conjunction. Transferring traditional assets into digital assets is decentralized in a smart contract. The beauty of the smart economy comes down to these smart contracts (contracts leading to actions once pre-set criteria are met). These smart contracts enable decentralized transactions without any middlemen. This is revolutionary in the context of the economy because our current economy is highly reliant on these intermediaries. To enable a new way of finance, blockchains need to enable the interaction between ordinary people and companies safely.
NEO cannot be mined as it has a fixed 100 million token supply and the blockchain uses a proof of stake protocol for transaction validation.
NEO, the token
The NEO network has two tokens, NEO being the tradeable one so that this token can be purchased on various crypto exchanges. NEO is an indivisible token, so its smallest unit is one, and it cannot go lower like in the case of many other cryptocurrencies. The distribution of the coin is capped at 100 million. 50 million of these tokens were sold to early investors during the initial coin offering of 2016. The rest is reserved for the long-term development of the network.
The second token, GAS, is generated by the NEO token. GAS tokens operate separately to be used on the network to pay for transactions and for Dapps-running as well (Dapp meaning a decentralized application). Unlike NEO, Gas tokens are divisible.
The future of NEO
The future of NEO is tightly woven together with the development of the entire smart economy sector. It is expected that the smart economy and decentralized financing will grow in the future as it holds multiple perks from transparency to efficiency. Different decentralized exchanges already use NEO and as in the case of all cryptocurrencies and blockchains, if the protocol manages to stay valid, compatible, and competitive, there is no reason to doubt its potential to contribute to the future world of smart economy. Therefore, it might be worth it to keep your eye on it!