What is NEO Coin? | A Beginner's Guide

Neo Coin

NEO Coin Price

Neo Coin is a non-profit blockchain project that uses digital identity and blockchain technology to automate the management of digital assets using smart contracts and create a smart economy on a distributed decentralized network.

The Gas coin of Neo is what is used to fuel Dapps and the ability to create smart contracts, similar to Ethereum using Ether. One can generate Gas by holding Neo in the NEON wallet.

THE HISTORY OF NEO (ORIGINALLY ANTSHARES)

In 2014 a company called Antshares (ANS) was formed and launched on Github as a real-time open source platform in 2015.

After using that name for two years during development, an ICO launch and even some adoptions they rebranded.

Their next name was NEO, a play on the matrix being “the one,” and releasing the ability for the NEON wallet to produce GAS, their tokenized system for the smart economy.

Antshares started as a Chinese based platform for building a smart economy. Although, it has gathered great use and popularity in many parts of the world.

At ICO 1 antshare was $.036 and as of now, NEO sits at:

THE PURPOSE OF NEO COIN

The NEO team believes that technology is the main driver of progress and together everyone can create the future. With that, they aim to help create the smart economy of the future.

A tokenized technological future where Dapps and smart contracts developed using NEO as the main cryptocurrency to produce GAS to power their smart contracts.

As they show on their website:

Digital Assets + Digital Identity + Smart Contracts = Smart Economy

Neo was created to allow for the ability of coders who invest into the NEO platform (using GAS) to actively create decentralized apps, DAOs and a lot more in the NEO community.

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THE BENEFITS AND MAIN FEATURES OF NEO CRYPTOCURRENCY

A Smart Token Economy:

Neo uses the smart ledger system to allow people to create a digitized smart economy.

By creating this system, it will allow a machine economy to exist, where the smart economy trades tokens and like to keep power and an incentive structure strong.

A Developmental Platform For Decentralized Applications (Dapps):

By pairing Neo with its partner token GAS, NEO allows developers to create applications that use this smart economy.

It takes 500 GAS for a developer to use NEO.

Which they set that amount to help make sure that they wouldn’t get scammy ICOs and companies just looking for a quick buck, but ones that want to invest in the actual platform.

By holding NEO, you produce GAS making two ways to get the 500 GAS:

  • Invest in GAS as well as NEO
  • Buy enough NEO to produce the desired amount of GAS eventually

Either of these options will qualify you to create a Dapp on the NEO smart economy, but only once you attain 500.

A (DBFT) Decentralized Byzantine Fault Tolerance Algorithm:

In other words, this is a consensus protocol that is different than proof-of-stake or proof-of-work.

The reason it contains “Byzantine” is that it helps to prevent the Byzantine generals problem.

What’s the Byzantine fault tolerance problem?

An agreement problem via consensus in which a group of generals, each commanding a portion of the Byzantine army, encircle a city.

They want to formulate a plan for an attack on the city but need to decide whether they attack or retreat.

Although, like any good debate some generals prefer to attack and some to retreat.

In the end, they must come to a common decision otherwise there would be a weak coordinated attack and retreat.

Now when this comes to the DBFT protocol, this helps to keep consensus even if some nodes decide to become malicious.

Similar to the 51% attack of Bitcoin, this prevents it through an algorithmic function of more severity if they are malicious and more reward if not.

NEOFS:

A decentralized storage system similar to filecoin, storj or Dropbox (if it was peer-to-peer.)

NEOQ:

A cryptographic mechanism that is lattice-based which creates a safeguard from quantum computers ensuring the network to be quantum proof.

Digital Identity Creation:

Part of Neo helping to create a digitized and tokenized economy will require digital identity.

Using NEO, organizations, individuals, and entities will be able to create an electronic version of their identity for easy accessibility and a quicker verification of who a person is.

Don’t worry using these features will require multiple factor authentication like facial recognition, fingerprints, voice, 2fa, and much more.

Rewards For Holding NEO:

By holding NEO, you get a payout in GAS.

GAS is another token, and the one that allows the platform to run, similar to Ether of Ethereum while Ethereum’s ether works for both.

By using this site: https://neotogas.com/, you can see how much GAS you will return via holding your shares of NEO.

Typically is 1000 NEO generates between 10 and 15 GAS per month.

WHAT WE AT GCA THINK OF NEO

Neo is undoubtedly an exciting token.

It not only acts similar to Ethereum but allows for a broader range of code while being the “Ethereum of China.”

If NEO follows the same path as Ethereum, we may see a significant spike in its price, driving it into the $$ with ease.

For now, we currently do hold NEO in the NEON Wallet.

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February 23rd 2018, 14:50