What Is NEO - for Beginners

First there was Bitcoin which even though not perfect, is still one of the most popular a high valued cryptocurrency. Then came Ethereum, which developed the blockchain technology introduced by Bitcoin further, but even that had room for improvements. Then came NEO, which took the Ethereum model to the next level. Previously known as Antshares, NEO is being called China's Ethereum. NEO was founded by Da Hongfei.

Despite its groundbreaking achievements, blockchain technology introduced by Bitcoin didn't find many suitable application in businesses. Ethereum aimed to fill that void by expanding on Bitcoin's proof of work algorithm by letting users create smart contracts that allowed the system to be used as a trade platform as well. But Ethereum's contracts have at times been vulnerable to hackers. NEO covers the loopholes present in Ethereum smart contracts and allows users to develop decentralised applications based on the blockchain technology.

One of the key advantages NEO has over Ethereum is that unlike Ethereum which uses its own language called Solidify, NEO supports Python, Java and C# making it accessible to a wider user base. NEO also uses a consensus mechanism called Delegated Byzantine Fault Tolerance or dBFT which varies from the Proof-of-Work mechanish used by Bitcoin and Proof-of-Stake used by Ethereum. This mechanism doesn't have a chance of chain-split and it also reduces the cost of electricity which are the two main problem suffered by the consensus mechanisms of Ethereum and Bitcoin respectively. It also uses SegWit to determine the blockchain size by having users and miners vote on it. Considering that Ethereum is right now the second best cryptocurrency ater Bitcoin, NEO which offers so many improvements on it has the potential to overtake even Ethereum.

Due to its technological advancements China has become one of the largest markets for cryptocurrencies. There are also rumours that NEO may partner with financial institutions in China and this can only further boost its value. Although the recent ban of ICOs by China has affected the price, its wide applications ensures that it does have the potential to come out of this slump and reach new heights. It is currently priced at $22.76 with a market cap of $1,137,800,000.