The recently rebranded NEO cryptocurrency is somewhat famous for being China’s first public blockchain for digital currency. Given the cryptocurrency developments that occurred in China during 2017, NEO saw a dramatic decrease in its value. The coin has rebounded, however, and may present a solid investment as the China situation subsides. With upgraded technology, a greater social media presence, and more detailed technical documents for users to read, NEO is positioning itself to become one of the more popular Altcoins on cryptocurrency exchanges.
The History of NEO
NEO actually began as Antshares. Widely hailed as China’s version of Ethereum, Antshares was immediately praised upon its arrival. There were some initial problems with the coin. For one, all the initial information was published in Chinese. This made it hard for the cryptocurrency to be embraced beyond China’s borders. Still, the reputation the developers and a substantial Antshares Whitepaper prompted respect among those who invest in digital currency.
In August of 2017, Antshares publicly rebranded as NEO. The immediate reception pushed NEO into a top ten spot among cryptocurrencies. The original similarities with Ethereum have been somewhat pushed aside in favor of a more distinct platform, but the coin still utilizes a form of smart contracts to enable transactions.
NEO integrates E-contracts which are unique in the fact that they allow users to register intellectual property and other forms of ownership. This is significant given the fact that piracy in China has been an ongoing problem. Chinese business who choose to use NEO have an option via the cyrptocurrency to establish an intellectual property claim and therefore protect their assets. This could also garner favor with the Chinese government who’s primary objection to Bitcoin and other digital currencies is their anonymous nature.
The rebranding and introduction of NEO also helps to take Antshares global and turn it into an international entity. The wallet established by the developers is user-friendly and attractive. Contracts can also be written in a variety of programming languages which also opens up the functionality of the currency to more people.
NEO was founded by Da Hongfei. As a part of the rebranding, Hongfei debuted a video that does a good job of explaining the currency and also apps for PC and mobile platforms. Hongfei has stated that he is using a global community of developers who are helping to translate the coin’s information into many different language. This team, referred to as the “City of Zion” by Hongfei, is working to make the NEO usable by many different societies throughout the world.
The NEO platform has attracted a large number of blockchain startups such as Bancor, Coindash, and Agrello. These partnerships are a positive sign for this cryptocurrency. It is also attractive that NEO benefits from the Chinese commitment to technology.
According to the Whitepaper for Antshares/NEO, there is no mining possible for this cryptocurrency. Instead, those who participate in the mining process generate “gas” similar to the way that Ether is created. This gas has value but is not the same as the value of the coin itself.
A benefit of acquiring NEO is that doing so entitles you to a form of ownership of the blockchain. This ownership confers voting rights regarding matters of future development. It also allows fees to be collected in the form of NEO or traditional fiat. NEO is not a Proof of Work platform and therefore no mining is accomplished.
Those who wish to mine cryptocurrencies like Bitcoin, however, can still do so. These mined coins can then be traded for NEO on cryptocurrency exchanges. Sadly, the process of mining coins has gone beyond the reach of the average cryptocurrency hobbyist today. The equipment required is very expensive and it consumes a vast number of resources. In most cases, it can take a very long time to recoup an investment.
A better solution for mining cryptocurrencies is to join a collective like the one offered by Genesis Mining. Participation in this collective requires only a small investment. Individuals purchase hash power together and share the returns. Genesis Mining maintains all of the equipment and keeps it in secure locations around the world.
NEO Use and Acceptance
NEO is still in its infancy and has limited acceptance as a form of payment on or offline. At this time, those who acquire NEO prefer to hold the currency as an investment. However, the potential for NEO to become a valid form of payment is present thanks to its development team.
NEO may be obtained by trading on cryptocurrency exchanges and has a history of being somewhat low priced in comparison to other coins. The China developments regarding Bitcoin in 2017 caused all cryptocurrencies to plummet, so now is a great time for newcomers to enter the market.
Cryptocurrency investing, like all other forms of investment, involves an inherent risk. Individuals are advised to learn as much as they can about the markets and seek guidance before engaging in an aggressive investment strategy.