Neo describes itself as a "fast-expanding and evolving" ecosystem aiming to be the cornerstone for the future internet—a new economy where digital payments, identities, and assets integrate seamlessly.
Originally named Antshares, this initiative was considered China's inaugural public blockchain at its launch in February 2014. The platform, which is open source, was rebranded to Neo three years later.
The team behind Neo has been building a global community of developers who innovate and enhance the network's infrastructure, aiming to lower entry barriers. They also manage an EcoBoost initiative, which is designed to motivate individuals to create decentralized apps and smart contracts on their blockchain.
Neo has often been compared to the Ethereum network, serving as a sort of Chinese counterpart.
The masterminds behind Neo and its predecessor, Antshares, are Da Hongfei and Erik Zhang. Both play crucial roles as chairmen of the Neo Foundation, which focuses on advancing the adoption of the blockchain.
Da Hongfei has remarked that, although the internet is a brilliant creation, it comes with significant shortcomings that limit everyday users' control over their data. He envisions blockchain technologies eventually becoming mainstream.
Erik Zhang is credited with developing the Delegated Byzantine Fault Tolerance algorithm, which is meant to discourage unreliable participants from engaging in blockchain operations. This technology was incorporated into the Neo blockchain. Zhang has also been a core developer for the network and is deeply involved in the development of Neo 3.0, the next stage of the project's evolution.
One of Neo's standout features is its ongoing development, ensuring it can handle sudden spikes in demand and remains equipped for the future. As highlighted earlier, the introduction of Neo 3.0 has improved network security and increased its transaction processing capacity.
Distinct from numerous other blockchains, Neo has two native tokens: NEO and GAS. NEO acts as an investment token, giving holders a voice in blockchain improvement proposals, while GAS is used to cover transaction fees on the network.
Few blockchain initiatives provide a development fund on the same scale as Neo. EcoBoost, launched in 2019, was introduced as a program offering comprehensive support for promising projects, including grants, technical assistance, and social media promotion.
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As of now, there are 70.5 million NEO in circulation, with the total supply capped at 100 million. NEO tokens aren't mined; instead, all 100 million were created when the blockchain was first launched.
The tokens were allocated equally, with half distributed to participants in a token sale and the rest divided among developers and the NEO Council. It was specified at the time that these funds would support investments in other blockchain protocols backed by the organization.
On the other hand, GAS is produced approximately every 20 seconds with the creation of a new block. The number of GAS tokens generated decreases annually, and it is projected to take 22 years for the total supply of 100 million to circulate fully.
As previously mentioned, Neo utilizes Delegated Byzantine Fault Tolerance, and it's estimated to handle thousands of transactions per second.
The dBFT mechanism draws inspiration from the Practical Byzantine Fault Tolerance algorithm, as per Neo.
There are parallels with delegated proof-of-stake, as both consensus mechanisms allow token holders to elect delegates for transaction processing.
In the dBFT system, blocks are added to the blockchain when at least two-thirds of the delegates reach consensus. This is intended to prevent malicious actors from disrupting the network's operations.
You can buy NEO on several exchanges, with Binance, Poloniex, and HitBTC being popular choices. However, it isn't universally available and is not supported by some platforms like Coinbase.
Many exchanges provide trading pairs that pair NEO with Bitcoin. Learn more about converting your fiat currency into BTC here.
