Experts, known as the Chinese Ethereum, predicted NEO might reach $900 in 2019. While NEO’s blockchain was similar to Ethereum’s, it had certain distinguishing features that drew investors and followers. NEO hit a record high of $161 in January 2018. However, external influences influenced the pricing, causing it to lose ground.
Encouraging blockchain startups to build more robust networks on top of the existing market offering was Ethereum’s 2017 surge and interest in smart contract platforms. With NEO, a Chinese blockchain, Antshares repositioned itself as a direct competitor to Ethereum.
Anthshares to NEO
Erik Zhang and Da HongFei established Anthshares in 2014 as an open-source blockchain for transactions and DAPPs. In 2017, the business rebranded as NEO, adding more complexity to their blockchain, and raised $6119 BTC in an ICO, placing them in the top 20 coins with a $5 billion market worth.
NEO, a hard cap of 100 million tokens issued in Genesis, uses a modified Proof-of-Stake protocol with a decentralized Byzantine Fault Tolerant (bDFT) consensus mechanism. Validators stake their assets, locking them in their wallet, and are compensated in neoGAS.
According to the Chinese government, their digital identity idea may have been implemented first in China. The Chinese ban on exchanges and ICOs had no impact on the NEO foundation. As the CEO stated, the Chinese regulator approached him for advice on the looming ban. Regardless, it influenced how Chinese blockchain initiatives grew following the ban.
NEO’s digital identities aim to construct the intelligent economy’s initial stepping stones through smart contracts. The digitization of physical assets generates a new ecosystem that requires blockchain. However, with the advent of NFTs, which operate similarly to blockchain-based digital assets, NEO has failed to realize its objective.
NEO has expanded its operations in China, but its global adoption has slowed. Alibaba (NYSE: BABA) has launched its blockchain technology for increasing shipping efficiency. NEO’s Onchain service creates private blockchains for businesses and individuals. Onchain has issued smart contracts with Chinese government agencies via Distributed Network Architectures (DNA) despite the new restriction.
The imminent release of NEO 3.0 shows the business has acknowledged and addressed its flaws. NEO co-founder Erik Zhang is not interested in a game of capital where ranking and market cap determine a project’s value but in actively constructing a highly safe and robust platform.
In 2019, NEO furthermore announced the creation of Neo 3.0, bringing additional commercial potential. The network design and structure improvements will be excellent for large-scale applications and multiple use cases.
This year, NEO has actively grown its exposure by forming new collaborations, such as NEO via UnionPay using DigiFinex debit cards. NEO also joined InterWork Alliance to enhance corporate use of Microsoft (NASDAQ: MSFT) or SDK. Their goal is to become the most popular coin among developers, not a market cap leader. It would be great to see NEO re-emerge as a significant participant in the current Crypto environment.
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