We explore the market’s newest, steadily growing cryptocurrency sensation
Bitcoin, Ethereum, Litecoin, Bitcoin Cash. These seem like the be all and the end all of cryptocurrency but there are actually thousands of coins out there all vying for your attention. One, in particular, NEO, has seen rapid growth within the last week and crypto geeks are asking: what is NEO and where did it come from?
What is NEO?
NEO is a non-profit Chinese blockchain project. It’s known as the Chinese Ethereum, using very similar blockchain technology and smart contracts as Ethereum. It’s China’s largest cryptocurrency and was created to establish a new smart economy through the use of smart contracts and blockchain technology.
NEO operates through the delegated Byzantine Fault Tolerance consensus protocol. Basically, this means that instead of being decentralized, it relies on stakeholders to vote on decisions about the currency.
Government regulation and corporate integration
NEO wants to create digital identities for its users, as it aims to be used by large corporations and businesses. To do this, it needs to be regulated by the government. This would not be possible with a completely anonymous blockchain. Therefore, it would be necessary to have people agree to have their transactions marked with a digital signature with which they could be identified. China is incredibly strict when it comes to regulating both their economy and their citizens access to the internet, so it makes sense that a cryptocurrency would have to open itself up to government regulation to survive and thrive there.
How are new coins introduced to the market?
NEO’s coin distribution works on proof-of-stake and not a proof-of-work system. Most cryptocurrencies rely on the proof-of-work system and mining to release new coins onto the market. However, this uses a huge amount of energy and can be expensive, time consuming and wasteful. NEO works on a proof-of-stake principle, simply releasing coins in relation to how much of a stake a user has in the currency. Ethereum, NEO’s most similar competitor, is reportedly considering making a move to this kind of coin distribution system.
Despite the massive cryptocurrency collapse in early January 2018, NEO is still a steadily rising asset. It looks like it might hit the milestone $150 mark soon. With a market cap of over $8 million, it’s the 8th largest cryptocurrency on the market. Since it launched it has grow to around 150 times its initial value. There are a total of 100 million NEO coins in existence and there are 65 million on the market right now. It continues to slowly but steadily climb in value as the year progresses.
NEO is looking to make significant gains this year and could be leading the way in terms of stable, regulated cryptocurrencies that can be used for payment as well as ensuring contracts. This could be the future of currency, and we get the privilege of watching it begin.
Find out about new cryptocurrencies on the market today. Stay up-to-date with our news section, learn how you can trade cryptocurrencies with our helpful guides or head on over to our review section to find the ideal trading platform.