Find the best broker for your trading or investing needs Amid recent bans imposed by China, Neo has the potential to emerge as the cryptocurrency of choice in the heavily regulated nation, and perhaps across the globe. (For more, see China Intensifies Crackdown On Bitcoin Mining.) Since its inception, Neo’s Onchain technology was designed to be regulator-friendly with a centralized approach that is quite different from most other cryptocurrencies.
This article explains the technology behind Neo and Onchain, their relationship, how they differ from standard blockchain technology, and what potential synergies and opportunities lay ahead, including the rumor that they may yet win acceptance by the Chinese government. Neo was originally founded as “AntShares” by Da Hongfei and Erik Zhan in China in 2014, and was rebranded “Neo” in June 2017.
It is a blockchain-based platform that supports its own cryptocurrency and enables development of digital assets and smart contracts. Neo theoretically describes its Smart Economy System as (Digital Assets + Digital Identity + Smart Contract = Smart Economy) Assets can be easily digitized on the Neo blockchain in an open, decentralized, trustworthy, traceable, and transparent manner that is free of intermediaries and associated costs.
Users are able to record, buy, sell, exchange, or circulate various kinds of assets, as Neo provides the necessary platform for linking the physical asset with an equivalent and unique digital avatar on its network. Neo also supports protection of assets, as assets registered on its platform through a validated digital identity are “protected by law.” Digital identity enables verifiable key information about participating individuals, organizations, and other entities that exist in digital context. Smart contracts enable the execution of transactions and agreements among different parties without the governance by any legal system or central mechanism.
The execution of such contracts is based on the programming code of the network, and it allows traceability, transparency and irreversibility of the transactions. Neo supports two cryptocoins, NEO and GAS. Read more from investopedia.com…
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