Neo has been called the Chinese Ethereum. It provides a native chinese platform for tokens and decentralised applications similar to ETH but with important technical differences.
NEO is not a mined currency – there were 100 million issued and there will never be more than that. NEO exists to bring the blockchain to chinese developers, business and institutions. Its tokens and decentralised application can do anything that the ETH network is capable go doing. .
There are no transactions fees. GAS Tokens exist to power the smart contracts with the fees paid to NEO holders. A lack of fees is intended to keep that network growing as the more assets on the blockchain, the more gas the NEO holders are rewarded with.
The price per NEO began at less than $0.60 cents, but since then it has seen highs of as much as $150.00. Demand for NEO, like Ether, especially increases when token sales on the platform are active.
An important concept to grasp when understanding NEO is the “Smart Economy”, which is a cornerstone of the token’s offer. Essentially, when we refer to the “NEO Smart Economy,” we are referring to an economic model where contracts are written in code and executed automatically as opposed to agreements made and enforced by humans.
This technology can be used in any transaction – but by being used on the NEO blockchain – there is far more transparency as well as security driven network.
Trust is removed from the equation in smart economics — there is no need to trust that the other party will act in good faith, as the contract will simply not function if any effort is made to not act in good faith.
As a result, business can be conducted more fairly, and problems generated by cultural and language barriers can be eliminated in code.
Perhaps just as importantly, the implementation of the Smart Economy – in NEO and elsewhere – introduces a new level of efficiency which can reduce costs, the savings of which will inevitably be passed onto end users of financial products.
In the NEO Smart Economy, all real assets can be digitized through decentralized applications. Institutions as varied as stock exchanges and rental agencies can find utility in a blockchain if it is inexpensive enough to use. Having low or no transaction fees as well as a fast network makes NEO an attractive platform.
What is GAS In The NEO Equation?
Along with the base token of NEO, GAS was launched with an identical maximum supply. GAS incentivizes people to hold NEO in that it slowly accrues in the account of every NEO holder over time, based on how many NEO they hold. There are calculators that give you an idea of how much GAS you can expect to earn. GAS will reach its 100 million mark in roughly 2039.
Because of the utility of GAS, some believe it may eventually be worth more than the NEO token itself. Historically its price has charted at about 1/3rd of that of NEO, but one can expect this to change, especially when GAS dividends run out and the only way to acquire it is through exchanges.
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