Neo blockchain project overview

Endy Callahan

In 2017, the name of the Antshares project was changed to NEO. The name was not the only change made, but also the activity direction. The developers set a goal to implement smart contracts. They decided to transform the traditional economy into a “smart economy” with cryptocurrency.

How NEO differs from other cryptocurrencies

NEO is often compared to the Ethereum giant ("What is Ethereum?" article will help to learn more about this cryptocurrency’s features). That is fair since the coins do have a lot in common. The main elements of the NEO blockchain project are the following:

  • Smart contracts
  • Identification blockchain based structure
  • Advanced cryptographic asset model

NEO tokens allow you to open your own exchange for exchanging some cryptocurrencies for other ones. Switcheo and NEX decentralized exchange platforms can be taken as examples. The high-performance trade mechanism opens the way to decentralization. Exchanges can be carried out without intermediary’s participation. Using NeoVM will let reduce time for both - start and operations performance. 

The project allows working with digital certificates that guarantee trust and legally protect the assets. They are digitized by the NEO platform.

NEO composition

The crypto system consists of: 

  • NeoX – responsible for managing and executing various blockchains
  • NeoFS – creates decentralized storage
  • Delegated algorithm of virtuoso resistance to failure - counteracts the Byzantine general’s problem. Even in case of the evil intentions presence it provides consensus
  • NEO Contract – smart contracts creation
  • NoeQ – creating problems that cannot be solved by quantum computers and creating quantum proof

NEO is using GAS. It is the "fuel" by which commissions are paid. Regarding programming languages - the developers have not created any strict rules – Java, C# and Go can be used.

Neo mining

The main drawback, for which crypto enthusiasts often speak out against NEO, is the high level of coin centralization. Blocks are created only in 7 nodes, 5 of them are owned by Neo Foundation, the rest belong to City of Zion and KPN. Each of the companies is NEO’s partner. The cryptocurrency’s board spoke about their plans to increase decentralization. 

One of the ways of increasing decentralization is replacing 5 nodes with nodes of other organizations. They have been tested successfully. Operators will be selected though voting. According to the project management, in case of success, the number of nodes will increase in a similar way. This will reduce the coin mining centralization.

Without any doubts, NEO is a first-class platform. It has implemented a large number of worthy projects. This largely explains both - the asset’s value growth as well as trust in it. In case you are forming a cryptocurrency portfolio, you should take into consideration including NEO coins in it. Most probably it will meet the expectations.