Do you know NEO?
Now that cryptocurrencies are in vogue, countries are beginning to adopt these currencies as part of their economic system and people increasingly feel the need to integrate into this world of digital currencies, it is necessary to know some projects that stand out in the ranking of the capitalization market. This time it is time to talk about a project called NEO, which according to its own Whitepaper aims to transform the existing technology regarding the use and trade with digital currencies.
NEO, like other projects such as Ethereum, Cardano or Polkadot, has the technology of smart contracts, as well as the ability to include DApps, distributed storage systems and a consensus protocol that is highly scalable, a situation that increases the interest of the community in what this platform offers.
This project began in 2014, under the sponsorship of the Chinese company Onchain, which is linked to AntShares and has important partners such as Microsoft and Alibaba. Those directly responsible for the creation of NEO are: Erik Zhang and Hongfei Da, who devised this blockchain in function of improving the capabilities of AntShares to make it an improved version of Ethereum. Moreover, its developers required to devise a new system that substantially improves the interoperability and migration capabilities between blockchain.
In 2017 the project assumed its current name and image with the purpose of following a clear roadmap, thus shouting to the world its intention to rise fleetingly in the ranking of cryptocurrencies and displace the hitherto unbeatable Ethereum in the Smart Contract line. However, NEO in its eagerness to take the lead is associated with the Chinese Government (the reason why it is called the 'Chinese Ethereum') as well as with the most important companies of that country, a situation that has had a significant impact on the valuation of the cryptocurrency as well as on its technological weight.
The NEO cryptocurrency boasts a number of rather unique features. While it is true that it has some that we have seen in Ethereum or TRON, the way they work is completely different. In fact, NEO has improved many aspects and taken them to new levels, not only of security, but of scalability, the Achilles Heel of cryptocurrencies.
In terms of technology, NEO presents a system called *Distributed Network Architecture (DNA) whose objective is focused on establishing the basis for a platform for interconnection between various digital services and other public or private blockchain through the execution of the NEO ecosystem. In this way it is possible to integrate any platform to this network. DNA is a system that allows NEO to manage actions such as identity, encryption or sharing of information or data securely and privately among users.
The company Alibaba uses NEO's services for the execution of its Ali Cloud mail platform, a sample of the capacity of this platform to interact with a company of important weight in the world. NEO has also been characterized by developing advances in blockchain consensus protocols, such is the case of the Delegated Byzantine Fault Tolerance (dBFT) consensus protocol, which is presented as a modified version of the BFT algorithm used by Bitcoin.
Through the dBFT intervention it is possible to involve a series of random validators resulting from the use of an on-the-fly inter-node voting method. The purpose of this methodology is to select the nodes that generate the block, thus enabling the confirmation of transactions. With the validators already selected, they immediately confirm the transactions while generating the block, over and over again.
Under this system each block is formed very quickly, as well as generating low energy consumption, also assuming that the energy consumption, also assuming that the cryptocurrencies are already fully mined. The scalability of NEO is based on the speed of creation of the blocks, which only take between 10 and 15 seconds to form, even working at an average capacity of 1000 transactions per second.
Regarding the distribution of the cryptocurrency, the total issue is 100,000,000 tokens, 71% of which are in circulation, divided into two parts: the first part consists of 50 million units distributed proportionally among NEO users who took part in the crowdfunding. The second part, the remaining 50 million NEO units are administered by the NEO Board and are used for the development and promotion of the activities and operation of the platform.
It is important to note that this publication does not represent a form of advice or promotion of the NEO project, the intention of this publication is to serve as an informative input to the community interested in this and other projects in the cryptosphere.
