WHAT MAKES NEO A RISING CRYPTOCURRENCY?
Cryptocurrencies are becoming widely adopted. However, with this surge in popularity, several countries are now seeking to regulate blockchain technology and cryptocurrencies. NEO, a growing cryptocurrency is emerging as a top choice because of its potential and bitcoin-like advanced features. Visit bit-iq.de for a comprehensive guide to cryptocurrency trading if you’re interested in trading bitcoin.
WHAT IS NEO?
NEO is a blockchain-based platform that was founded by AntShared by Da Hongfei and Erik Zhan in China in 2014. The medium was remodelled as NEO in 2017. The platform aims to allow customers to formulate digital assets and smart contracts through its own coins, NEO, and GAS. The NEO platform resembles a lot like the US-based Ethereum blockchain network, which gave it the name “China’s Ethereum”. The concept behind the blockchain-based platform and its currencies is that it will eventually allow the creation of a distributed network-based smart economy system.
WHAT MAKES NEO DIFFERENT?
Unlike other platforms and blockchain-run technologies, NEO is made to centre around being compliant with the regulations and framework of a government body. Here, Businesses, projects, and even individuals have to verify themselves as “digital identity” to function. This makes it quite a controversial “decentralised” network.
Another crucial aspect that makes the NEO network different from other mechanisms is that NEO does not utilise the proof-of-work function, unlike Bitcoin and Ethereum. The mechanism of Delegated Byzantine Fault Tolerance (dBFT) is used by the platform, like Binance. The primary reason behind this is that dBFT has the ability to reach a consensus even when more participants are untrustworthy.
NEO AND TAXES
The network holds two cryptocurrencies, NEO and GAS, both subjected to different legal frameworks and taxation policies in different countries. However, NEO taxation differs from other cryptocurrency taxation frameworks. NEO holdings consist of regular reception of GAS. To simplify, it can be compared to stocks holding to pay dividends.
WHY IS NEO CALLED THE ETHEREUM OF CHINA?
The creator of NEO himself explains the network with a reference to Ethereum for good. Ethereum is a widely known technology, however, there lies a major difference between NEO and Ethereum. Along with some similarities, both NEO and Ethereum are a platform for developers to develop decentralised applications and ICOs on a blockchain, which is further functioned by a crypto-asset (Ether or GAS). NEO blockchain has its own popular Dapps known as Ontology.
Both NEO and Ethereum possess complete Turing, making them have enough resources to calculate anything. While on the other hand, NEO has two coins on its network – NEO and GAS. NEO coin provides users the right to manage and form decisions, while GAS works as a “fuel” for the blockchain, as its name suggests itself. GAS is also used as NEO currency, with a limit of 100 million issues tokens on both, NEO and GAS. Another major difference between the two is the economical aspect. Ethereum network was built to provide 100% decentralisation and independence while on the other hand, NEO always needs to be centralised and work within a certain regulation. Apart from this, Ethereum tokens are supported on a lot of platforms for trade. NEO is working to level up the game of smart contracts and be a fruitful replacement for traditional complex contract systems for businesses all over the world. With effective tracking properties, NEO can transform the traditional mechanism and make its trading much more effective and profitable for users by providing easy and automatic supply chain assets.
NEO AND ITS POSITION IN CHINA
China has imposed a ban on several cryptocurrencies and all applications involved. NEO network is believed to have the potential of becoming a nationwide digital asset choice in the heavily regulated area. A majority of experiments have been run by the Chinese government, which resulted in the release of the cryptography laws. The law revealed that China is finally taking cryptocurrency seriously but at a slower pace. NEO may have the power to position itself well in a country with high rules and regulations and is labelled as a financial system that can reduce the gap within real-world assets. However, this makes NEO an indeed controversial topic because of its nature of being decentralised within a regulated body.
