Neo is one of the top decentralized app networks, enabling developers and users to create digital identities. It is the first blockchain platform developed by China, known as Chinese Ethereum. This blockchain network has gained huge traction, facilitating the development of a smart economy through decentralization. Utilizing smart contracts, the Neo blockchain enables users to automate asset management once the predetermined conditions are met.
What is Neo Blockchain?
Neo is an open-source decentralized blockchain network, that enables the digitization of assets and ownership transfer through smart contracts to create a smart economy. The platform integrates decentralized storage, an Oracle system, and a digital identity management system allowing users to create tokenized identities based on real-life identities, facilitating anti-money laundering and know-your-customer compliance. The platform was founded by Da Hongfi and Eric Zhang in 2014, which was then known as AntShares, later rebranded to Neo in 2017.
Key Features of Neo Blockchain
Neo blockchain creates a favorable environment for decentralized apps and smart contract creation. The key features of the platform include,
1. Delegated Byzantine Fault Tolerance
Neo blockchain network utilizes delegated Byzantine Fault tolerance to validate transactions. It enhances the security, speed, reliability, and efficiency of the network. More than 10,000 transactions are carried out in a second in Neo blockchain and the dBFT protocol facilitates it.
2. NeoContract
Neocontract enables developers to use languages they are familiar with for designing smart contracts, eliminating the need to learn new programming languages. The wider availability of languages increases the number of developers utilizing the network, enhancing the development of the Neo platform.
3. Enhanced Security
Neo network considers security as paramount. It utilizes cryptographic techniques to secure data during transactions. The delegated Byzantine Fault Tolerance prevents transaction validation before acquiring consensus.
4. Regulatory Compliance
Adhering to regulations is one of the major advantages of Neo blockchain. The platform allows users to establish digital identity by aligning with the rules and regulations of various industries and governments.
How Does Neo Blockchain Work?
Neo blockchain operates using a delegated Byzantine Fault Tolerance (dBFT) protocol. All nodes in the network vote to select a number of nodes, which act as delegates. A random delegate is chosen, and it then verifies a block and adds it to the blockchain. The dBFT protocol enables the platform to carry out a large number of transactions within seconds. This mechanism ensures fast transactions, network scaling, and smooth operation of the network.
How Neo Blockchain Facilitates a Smart Economy?
Utilizing Blockchain technology and digital ownership, the Neo platform is aiming to design a smart economy. The key components of the Neo blockchain include,
1. Digital Assets
Any asset, including a physical asset that is transferred into a blockchain and has a value is considered a digital asset. Users of the NEO blockchain can buy, sell, or trade their digital assets. The digital assets are linked to their physical assets through a digital identity, increasing the security of the assets.
2. Digital Identity
Digital identity refers to digitally stored information about a person, business, or organization. Living in a digital era, it is important to secure personal information and data through blockchain, consensus, and encryption models. The Neo platform utilizes PKI (Public Key Infrastructure) X.509 for managing identity; the encrypted public and private keys help verify identities. Facial recognition, fingerprints, voice, SMS, and other multi-factor identification methods are used to verify the identity.
3. Smart Contract
Smart contracts are programmed codes that automate transactions between parties when the conditions are met, eliminating the need for intermediaries to facilitate transactions. NeoContract, the smart contract technology of the Neo blockchain allows developers to use common programming languages like C# and Java for creating, debugging, and compiling smart contracts.
NEO and GAS: The Two Native Tokens of the Neo Blockchain
Neo network has two native tokens, NEO and GAS.
1. NEO
NEO is non-divisible and is used as the main payment option in the Neo platform. The token can be staked in the platform to earn rewards and also to earn governance rights. NEO has a total supply of 100 million and 70.53 million are in circulation. The token has a market cap of $1.04 billion and a market volume of $69.31 at the time of writing.
2. GAS
GAS is divisible, it can be divided into 0.00000001 fractions. The token is used to pay the transaction fees of the network. By creating new blocks, users get rewards in return as GAS tokens. GAS has a total supply of 64.99 million, and all of them are in circulation. The token has a market cap of $335.05 million and a market volume of $31.63 million at the time of writing.
Final Thoughts
Neo blockchain digitizes assets and identities, enabling interoperability among different blockchains. The platform allows easy building of decentralized applications by accessing external data and real-life products and services. The two native tokens of the platform, GAS and NEO facilitate the interactions in the network, enabling governance and staking. The Neo blockchain network aims to create a smart global economy, with a more scalable, secure, and adaptable interface for widespread use.