Everything you need to know about the Chinese blockchain that’s changing the future of business.
Typically, the first thing you’ll hear when someone explains NEO cryptocurrency to you is an Ethereum comparison. Because NEO is commonly referred to as “Chinese Ethereum” the comparison carries a lot of weight for people who are familiar with the cryptocurrency industry but don’t know anything about NEO.
Obviously, there are many questions that still need answering, which is why we’re here to help. By the end of this article, you should not only know what NEO cryptocurrency is, but you may find yourself in a position to defend and argue that it’s actually superior to Ethereum.
What is a Smart Economy?
Ethereum was the first major blockchain on the cryptocurrency market. Nearly every initial coin offering is made on Ethereum’s platform, but it emerged as a result of getting to the dance first. What makes NEO different is that its mission is very similar to Ethereum. However, NEO utilizes its unique blockchain to improve that platform and create a superior network.
Ethereum’s goal is to be the biggest platform for DApps and to give as many users and developers more control over the development of their apps. NEO wants to be the main platform for a “new smart economy.” The first huge concept to understand is “NEO Smart Economy.” A smart economy is defined as digital assets and a digital identity combined with smart contracts.
The network has been built on two types of crypto tokens. NEO tokens were all pre-mined during the Genesis event and have a hard cap of 100 million tokens that are used for block creation, network management, and any consensus requirements. GAS tokens should be thought of as the fuel for the entire NEO blockchain. It’s been used to allocate resources and maintain the daily operations of the entire network.
An “NEO Smart Economy” refers to the economic model that allows smart contracts to be written and executed automatically instead of agreed upon by and then enforced by humans. In essence, trust is removed from business situations through the NEO blockchain because the platform demonstrates a degree of transparency and security for any transactions made on the network.
The concept of “good faith” isn’t necessary as a result of using the NEO blockchain because the smart contract literally can’t function there has been an effort to not meet the requirements of the contract. Most importantly, the process becomes dramatically more efficient and less expensive to use than other methods of doing business.
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