Neo (NEO) is an open-source, blockchain-based community that enables builders to create digital belongings and sensible contracts. The blockchain, which was based in 2014, was initially known as Antshares (ANS), however switched its identify to Neo in 2017.
During its early years, the platform was typically touted as a possible “Chinese Ethereum killer,” however the undertaking has thus far didn’t surpass Ethereum, the platform that produces ether, the world’s second-largest cryptocurrency by market worth after bitcoin.
The Neo blockchain has two native tokens for its ecosystem: GAS and NEO. The GAS token is used to characterize the proper to make use of the Neo blockchain, and its NEO token represents the proper to handle the blockchain.
NEO token holders can take part in each on-chain and off-chain governance buildings. For on-chain governance, holders can use their NEO to vote on community protocol upgrades and obtain GAS as an incentive for collaborating. Off-chain governance choices may be voiced to the Neo Council. The council is liable for making strategic and technical choices and for implementing modifications.
As outlined within the undertaking’s white paper, the whole provide of NEO was minted on the first block and capped at 100 million. Neo held an preliminary coin providing (ICO) all through August 2017, elevating over $28 million for the undertaking and distributing 50 million tokens to ICO contributors. The remaining 50 million tokens had been held by the Neo Council for the long-term help of Neo tasks.
Of the 50 million NEO retained by the Neo Council, the workforce assured that the council wouldn’t use greater than 15 million tokens per yr and that tokens can be distributed as follows:
- 10 million NEO are used as an incentive for Neo builders and the Neo Council;
- 10 million NEO are used as an incentive for builders working throughout the Neo ecosystem;
- 15 million NEO are used for investing in different Neo Council blockchain tasks;
- 15 million retained as a contingency.
The NEO token reached its all-time excessive of $196.85 in January 2018 following the platform’s rebranding from Antshares and launch of the Neo NEP-5 token standard. The undertaking’s token dipped to an all-time low of $0.07229 in October 2016 simply after the launch of the Antshares mainnet.
Like the costs of many different cryptocurrencies, NEO’s value stagnated for many of 2018. Then, it didn’t rise above $25 in 2019 and 2020. But throughout the crypto bull run in May 2021, NEO’s value surged to $140, which was the best value in additional than three years.
How does Neo work?
Neo is a distributed community that makes use of blockchain expertise and sensible contracts to automate digital asset administration. The blockchain’s mission is to make any asset, digital or bodily, accessible to actual human beings and to laptop applications with minimized belief and permission.
The Neo blockchain makes use of a “Delegated Byzantine Fault Tolerant” (dBFT) consensus algorithm that’s able to producing a block in 15 to twenty seconds with transaction speeds of round 1,000 transactions per second. The undertaking’s documents state that Neo has the capability to succeed in speeds of as much as 100,000 transactions per second.
Neo’s NeoContract sensible contract system consists of three elements, together with a common blockchain digital machine (NeoVM), interoperable providers (InteropService) and a compiler with an IDE plug-in (DevPack). By making a uniform system with an IDE for NeoContract improvement, builders can write and deploy contracts in a wide range of programming languages, together with Python, Java, Go and C#.
One of the important thing options of the Neo blockchain is its decentralized identification software: NeoID. NeoID permits on-chain authentication instruments that permit customers confirm credentials with out the necessity for sharing personal knowledge. NeoID’s identification framework has broad use for decentralized purposes and may be built-in into knowledge verification, attribute verification and different identification providers.
Key occasions and administration
Neo was founded by Da Hongfei and Erik Zhang in 2014 beneath the identify Antshares. A yr after the undertaking was launched, Antshares put the code for its smart-contract blockchain on GitHub and launched the TestNet for neighborhood improvement. By October 2016, the Antshares blockchain launched its mainnet.
As the Antshares neighborhood continued to develop, the workforce sought to develop its operations internationally. To higher characterize the model on a world degree and spotlight Antshare’s newly built-in Smart Contract 2.0 improve, the Antshares blockchain was renamed Neo in 2017.
Alongside the rebranding, Neo distributed its NEO tokens by way of the ICO and established the Neo Council, which consists of the undertaking’s founding members, a administration committee, a technical committee and a secretariat who’re liable for the selling and creating the product.