Almost all cryptocurrencies have a market value and are available in exchanges, but some are primarily monetary instruments for investing in cryptocurrencies, such as Bitcoin, which originally conceived as a type of digital gold, while others are more skillful in nature.
NEO, or Neo-Crypto, belongs to the latter group. In fact, Ethereum’s token, Ether, often refers to as a competitor or alternative to Ethereum, one of the most popular and valuable cryptocurrencies.
The goal of NEO is to register, trade, and distribute various types of assets on the NEO blockchain. Originally known as Antshares, the project changed into NEO in 2017, two years after the code was first submitted.
NEO hosts one of the most fundamental ideas in cryptocurrency: smart contracts. Smart contracts are automatic contracts commonly to exchange digital goods or digital assets. It has been fully digitally verified and is valid without the application of any third party or institution. Contracts write in computer code and then stored on a digital ledger such as a blockchain. Various blockchain projects develop to support these contracts, with NEO being one of the most popular. NEO also supports DApps or decentralized applications. Ethereum performs both of these functions.
NEO has several properties that make it better than its rival, Ethereum. This includes C, Java, and Python. In contrast, on Ethereum, developers can only use Solidity, which is a niche. Transactions can process faster. The NEO network can process up to 1,000 transactions per second, compared to about 15 Ethereum transactions per second.
One of NEO’s activities is the development of digital IDs for users and traders. This digital identity system is intended to help NEO work better with regulators, as one of the goals of the project was to create a system that is more regulatory-friendly. Eric Zhang, the co-founder of NEO, wrote in 2019 that we are keenly aware of the key role of governance in the long-term evolution of blockchain as a shared commodity jointly owned by our stakeholders and, more broadly, by all the communities around us. They are not cryptographers.
NEO and GAS
There are two types of cryptocurrencies associated with NEO: NEO and GAS. GAS must be the fuel that NEO runs on. If you have NEO tokens, you get GAS over time. According to NEO developers, gas will pay transaction fees and execute smart contracts. You can use other cryptocurrencies, but you cannot buy them in dollars. GAS is provided to those who do computational work to keep NEO running and can be used on NEO. About 100 million GAS tokens will be created over the next 20 years or so.
As of March 2021, NEO values at $41.26 and has a market cap of approximately $2.9 billion. Currently, about 10 million GASES are in circulation, with a market cap of about $119 million. As of March 2021, the GAZ was worth $11.83.
Investing in cryptocurrency is a high-risk business. Like any cryptocurrency, NEO has gone through ups and downs since its launch. NEO survived one of the first cryptocurrency booms, reaching nearly $197 in January 2018. The price dropped significantly between July 2018 and September 2020, from $16 to $20. Like other cryptocurrencies, their value rose in late 2020 and early 2021. Some observers believe that NEO, with a focus on compliance, could benefit from the Chinese government’s strict oversight of the cryptocurrency industry. Cryptocurrency regulation is a huge challenge for miners, users, and crypto investors, and NEO is no exception. Anyone looking to invest in NEO should especially keep in mind how China’s various governments view cryptocurrency mining, smart contracts, and smart assets.
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