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Neo3: A New Start for Realists

Da Hongfei presented an in-depth look at Neo3 during the 2nd Nova Global Blockchain Investment Institutions Summit in Sanya, China.

Neo3: A New Start for Realists iBase Trading.
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Da Hongfei presented an in-depth look at Neo3 during the 2nd Nova Global Blockchain Investment Institutions Summit in Sanya, China.

In 2020, mainstream initiatives like BTC and ETH had scaled, while emerging forces like Polkadot, IPFS, and Chainlink are fast-growing.

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Moreover, in 2021, a new pattern will emerge as existing blockchain core infrastructures take shape. These include value storage protocols like BTC (whose market cap has topped $400 billion), high-performance public blockchains like ETH2.0, homogenous cross-chain networks like Polkadot, storage protocols like Filecoin, and Layer 2 solutions like Chainlink. The web3.0 (NGI) problem is nearly finished. At this point in Neo’s development process, it is also a crucial infrastructure of NGI. With this new pattern in mind, Neo3 introduced “Solutions 3.0“.

Neo3 will be a complete migration of the Neo MainNet, creating a new blockchain from the genesis block. The fundamental structure, functionality, economic model, and ecosystem development are all being improved. Over three years of development and experience, we have improved security, stability, efficiency, and governance.

The Following Five Points Outline the New Neo3 Changes

New Governance Mechanism

This is a flexible and manageable mechanism based on dynamic, comprehensive democratic voting.

Holders of NEO will elect consensus nodes and Neo Council members, which will dynamically refill. Any registrar, informal organization, anonymous organization, or individual can run for election. Furthermore, the Neo Council will consist of the top 21 candidates, and the top 7 nodes will be the network’s consensus nodes and generate blocks. The vote results are updated every 21 blocks. The election will be accessible to the community, and participating in the governance process would reward NEO holders. The council’s term is 21 blocks, and voters can change their voting tactics.

New Ecosystem (Poly Network cross-chain ecosystem, Flamingo-based Defi ecosystem)

Neo is actively growing its native and cross-chain ecosystems. In 2020, the Poly Network achieved a total transaction value of $2.1 billion and interoperability with public chains like Ethereum and Ontology. Neo3’s enhanced StateRoot will also enable cross-chain transactions, and Neo will use Poly Network to achieve on-chain ecosystem compatibility with more public chains. In the second half of the year, the Neo Foundation incubated the full-stack DeFi protocol — Flamingo. In a few days, we’ll debut the Perp Developers are always welcome to contribute to the ecosystem evolution by adding fundamental DeFi modules on Neo.

A New Economic Model

GAS allocation model, transaction costs are significantly reduced due to the increase in TPS, and network deployment cost also considerably reduces. Neo3 offers a novel economic model to lower costs for users and improve financial incentives for holders. Neo3 will significantly reduce development and transaction expenses for both developers and users. Only incremental storage space has charges, and contract deployment costs are less than 1/100 of those in Neo2. Each block will generate 5 GAS blocks, divided into the Neo Council (consensus nodes and candidate nodes), Neo Council members’ voters, and all NEO holders. Neo wants to reward ecosystem architects and players financially.

New Design

UXTO changed to account system, Neo VM, dBFT2.0, node, and contract upgrades. Neo3 will have a new underlying architecture that makes it safer, more effective, and more reliable. First, Neo3 has abandoned UTXO. The new NEO and GAS contracts will use the new asset standard NEP17, making Dapp’s development easier and more developer-friendly. Neo has developed a blockchain-based VM that is faster, lighter, and more versatile. Furthermore, the dBFT2.0 consensus mechanism is theoretically secure, ensuring single-block finality on Neo and enhancing network stability and security. Finally, the new block synchronization and data compression mechanisms would ensure network and node performance and dependability.

New Features (Oracle, NeoFS, NeoID)

Neo will also offer developers and users an ALL-IN-ONE blockchain experience. The Neo3 MainNet will include an embedded oracle, a decentralized storage network, and a decentralized ID solution.

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Sophia Vasquez is a journalist and writer for iBaseTrading. She has over 10 years of experience writing about Business news and has been covering the blockchain and cryptocurrency space since 2011.