- 1 What is NEO Cryptocurrency?
- 2 How does NEO work?
- 3 Who created NEO?
- 4 How is NEO difference from other cryptocurrencies like Ethereum and Bitcoin?
- 5 How fast is the cryptocurrency NEO?
- 6 How secure is NEO in regards to other cryptocurrencies?
- 7 Can NEO coin be mined? How to mine NEO?
- 8 Where can I buy NEO coin?
What is NEO Cryptocurrency?
NEO is a cryptocurrency that allows the development of smart contracts and digital assets. It is an open source decentralized altcoin that was launched in China. NEO as a cryptocurrency has a crypto-token named GAS that was initially known as Antcoins (ANC). It is usually referred to as the ‘Chinese Ethereum.’
The NEO smart economy concept allows instant payment to anyone anywhere in the world. As an open source decentralized coin, it operates with no intermediaries. Hence anyone can take part. Although based on the Bitcoin protocol, the NEO coin has unique characteristics that make it the most advanced cryptocurrency in the market.
How does NEO work?
The main aim of NEO cryptocurrency is to use smart contracts to convert traditional assets to digital assets. The digital assets are decentralized and protected by law that uses digital certificates on the NEO blockchain.
NEO also enables the creation of digital identity information of individuals and organizations. The identities can be used through multi-factor identification which includes facial recognition, SMS, and fingerprints.
The NEO cryptocurrency has a token named GAS that acts as the investment in the NEO blockchain. The GAS token serves as the fuel for the blockchain. NEO token has a total of 100 million tokens which were all created at the beginning of the blockchain. They are used in network management and block creation. NEO is not divisible. Therefore, the smallest unit you can hold will always be 1.
Who created NEO?
Initially, NEO was known as Antshares (ANS). Antshares was China’s first blockchain founded in 2014 by Da Hongfei and Erik Zhang. In 2016, they founded OnChain which is a company that provides blockchain-based financial services. This was driven by the need to find blockchain solutions that fulfill the private companies and government regulators’ demands.
Both OnChain and NEO are established in Shanghai, China. NEO is vulnerable to Chinese regulations that affect the cryptocurrency development and markets. The aspects of NEO smart contracts are still in progress. Hence, some details about them are not precise. The whitepaper does not yet give a clear guide on NEO’s inner functions but instead provides a general overview of its smart contracts.
The smart contracts enable users to store and exchange the cryptocurrencies. NEO has successfully incorporated the evolving technology and cooperated with Chinese authorities towards achieving a ‘Smart Economy.’
How is NEO difference from other cryptocurrencies like Ethereum and Bitcoin?
NEO has the taken the cryptocurrency world by a storm. Most people consider it an upgrade and a close competitor to Ethereum. This is because the NEO coin has incorporated technology that has enabled close the loopholes that developers suggested made Ethereum prone to hackers.
NEO is different from Bitcoins in the sense that it has another cryptocurrency available in the blockchain. This is known as GAS. Therefore, NEO only represents the shares while GAS is the actual altcoins used in the system.
Also, NEO is not divisible into fractions like Bitcoins. The smallest unit of NEO coins you can hold is and will always be 1. This is like owning shares in a company which is also not divisible.
Holding NEO automatically starts earning GAS as more blocks get discovered. The value of GAS is decoupled from the amount of NEO. This is similar to Ethereum but different from Bitcoin mining. The value of a BTC mined is equal to the value of a BTC bought.
How fast is the cryptocurrency NEO?
NEO can handle 1000 transactions per second. Comparing to Ethereum’s 15 transactions per second, NEO is quite fast. It can also optimize over 10000 transactions in one second.
Although the infrastructure surrounding the NEO blockchain has not fully developed, NEO growth in 2017 was phenomenal. However, this was limited by the additional security requirements that had not been installed which increased the number of scams compared to other crypto coins.
Despite the shortcomings and delay in offering fully developed infrastructure, there are some user-friendly and safe NEO wallets that you can use.
Although the future of NEO is still uncertain, many speculate that by the end of 2018, the value of NEO will be around $100.
How secure is NEO in regards to other cryptocurrencies?
Currently, there are no hardware wallets that can support NEO. When selecting your NEO wallet, ensure that the wallet supports NEO and its token GAS. Use a wallet that allows you to claim GAS tokens generated by the NEO you are holding.
As a new cryptocurrency, you need to be careful since its security is not as developed as with other popular altcoins. Scammers and hackers are everywhere in the cryptocurrency market. Carry out thorough research to ascertain that you are being hacked or scammed.
Never share with anyone your private keys. Also, ensure that you have backed them up somewhere safe.
Can NEO coin be mined? How to mine NEO?
NEO cannot be mined. It is a POS coin. Therefore, you need to have it in your wallet so that you can receive GAS. It is better to buy and hold while waiting for the NEO price to increase so that you can sell your coins. The more NEO you have, the more GAS you earn.
GAS acts as dividends and is issued based on the number of NEO coins in your wallet.
Investing in NEO is substantially the same as buying shares hoping to make money in the future while earning dividends. GAS will be used in future to pay the transaction fees.
Where can I buy NEO coin?
To get a NEO wallet and start earning GAS, follow these steps:
- Buy some bitcoins from a trader. It is vital since NEO can only be bought using Bitcoins.
- Sign up to the official NEO exchange account known as Bitrex. Here you can buy NEO using BTC.
- Transfer the BTC to the wallet provided by Bitrex.
- Purchase NEO from Bitrex using the Bitcoin.
- After the purchase, you will have NEO in your Bitrex wallet.
GAS can only be earned from NEO stored in a wallet that you own. Therefore, install a wallet that is compatible with NEO in your computer and transfer the coins from Bitrex to yours. The NEO coins will then start earning GAS for you.