NEO ecosystem overview
Only a few projects became famous and successful after the ICO, and didn’t vanish after embezzling investors’ money. Only 5% of projects fit this description, and NEO is one of them.
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The NEO token, dubbed the “Ethereum killer” at the time of its launch, was introduced in 2014. Two years later, the founders decided to launch an ICO to raise more capital. They raised over $28 million, which was considered a significant success at the time. The project's main investors were large financial institutions that viewed NEO as a progressive asset with rather low transaction fees.
Investors actively purchased tokens for 7–20 cents during the pre-sale period, and shortly after the ICO, the price of the NEO tokens increased to $100 per coin. The ATH was set at about $200, and the ROI was about 4000%. The token's capitalization has now decreased from 3 billion to 500 million as a result of the downtrend that lasted a year and a half, and its price fluctuates around $7, but the most interesting part is yet to come.
Neo has a limited supply of 100 million tokens. More than 70.5 million coins have been issued so far. Recently, the NEO coin moved to the brand-new N3 blockchain platform, which enables the purchase and storage of NFTs in addition to reduced GAS costs. The benefits of the new network include compatibility with other blockchains (like Ethereum and BSC), a smart contract constructor, built-in oracles, and a variety of other useful tools.
NEO is considered a rapidly expanding and evolving ecosystem that aims to serve as the foundation for a new decentralized economy where instant low-cost transfers, digitized data, and assets form a single unit.
The NEO Blockchain
The NEO Blockchain is unique in that it combines digital assets with a digital identity. Furthermore, it supports a variety of popular programming languages, including Python, Java, and others, allowing developers to easily create smart contracts without relying on a specific programming language.
A new level of security was added by employing the Byzantine Fault Tolerance feature. Unlike traditional PoW and PoS, BFT does not allow the formation of parallel chains of blockchains. NEO forks won't appear, in other words. Block generation and transaction processing are entirely within the purview of the token's owner. Voting is used to select the group of nodes that will perform this task.
Only users who have passed the KYC procedure are eligible to become validators. It is impossible to become the owner of a trusted node without identity verification. This enables the NEO project's administration to create an independent list of bookkeepers to keep track of every node owner.
NeoVM (NEO virtual machine) supports cross-chain operation services and distributed data storage. As a result, the launched dApp receives a high level of protection, and the competent use of multiple platforms' resources enables the creation of complex decentralized applications. Blockchain projects built on NeoVM adhere to the NEP5 standard. The NeoVM storage is compatible with NeoContract, a tool for creating smart contracts from large files.
What are the components of the NEO Ecosystem?
NEO employs the BFT consensus algorithm, where only selected validators can participate in block creation after all transactions have been verified. There are no noticeable delays in the formation of blocks. The high throughput of the transactional network can reach 2400 TPS (transactions per second), which has a positive impact on scaling. Bitcoin has a TPS of less than 25, in contrast.
The Neo ecosystem includes NeoVMs, NeoQs, and NeoFS.
NeoVM is a virtual machine for executing NEO smart contracts. It employs a unique NeoCompiler that translates code from various programming languages into native bytecode. Ethereum, where developers are required to learn a programming language to create smart contracts, lacks this feature. In addition, NeoVM organizes interactions with other blockchains and services.
NeoQS is a solution that protects NEO against quantum computer intrusions that could threaten the integrity of the blockchain in the future.
NeoFS is a decentralized object storage network that enables users to store Internet of Things (IoT) data in unstructured formats. Users can also earn GAS by renting a certain amount of storage.
NEO's mission is to enable public and private blockchain interoperability. With crypto mass adoption, assets with digital identities will be able to provide interoperability between decentralized, private, or hybrid blockchains using the NEO ecosystem in the future. This makes the NEO project interesting for both digital asset holders and corporations.
What projects use NEO
Ontology is a public platform that supports various blockchains and IT projects. The main goal is to build a trusted ecosystem that will be used for business development.
NASH is a platform that enables the execution of extremely complex transactions in addition to the buying and selling of assets. The project's goal is to use a fair consensus algorithm to process all network transactions.
QLC Chain, formerly known as Qlink, aims to become the world's leading distributed telecommunications platform. The QLC network enables each user to join a decentralized telecommunications group. The company held a high level of trust from the interested community for a considerable amount of time because it was the only player in its segment.
Zeepin is a project that aims to protect creative professions in the digital space. Users can copyright their work using Zeepin. Therefore, it can resist plagiarism and piracy.
NEO Staking
The PoS algorithm is used to issue coins and support the operation of the system, even though the project is based on the BFT algorithm's fundamentals. It enables the staking of NEO tokens, which are paid out in the cryptocurrency GAS. The project intends to support GAS until 2039, after which the concept will be revised.
Prospects of NEO
Large corporations such as Alibaba and Microsoft are already using NEO as an alternative to Ethereum. They believe this is a promising coin that can be used to pay for goods and services. NEO is also popular among developers because it allows them to interact with the blockchain using almost any programming language.
At the same time, many people notice the project's growing trend toward centralization. However, the backing of major corporations is apparent, and more and more startups are considering NEO. It is one of the few assets that can be withdrawn with no fees from major CEXs like Binance, Huobi, WhiteBIT, HitBTC, and others!
Twitter: NEO is one of the few projects that launched a successful ICO and secured its foothold in the market. Our article will explain how this coin gained supporters, built its own ecosystem, and filled its market niche.
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