What is NEO and How is OnChain Technology Different

OnChain Technology

NEO is a decentralized blockchain platform that was initially launched under the name Antshares. Da HongFei and Erik Zhang created the application. Neo was rebranded in 2017 with a focus on smart contracts using blockchain technology. The difference between Neo and other blockchain platforms is the speed at which miners can verify transactions. 

Like other blockchain digital coins such as Bitcoin and Ethereum, Neo runs a proof of stack decentralized platform. The proof mechanism is a fault-tolerant consensus mechanism between several centrally approved nodes that can support up to 10,000 transactions per second. This speed compares to 10 minutes to mine one bitcoin

The Neo blockchain creates a digital coin which is the Neo token called a GAS token. These GAS tokens, a separate asset on the network, can be used to pay for transaction fees and are divisible with the smallest unit 0.00000001. The GAS can grow in size and is controlled by an algorism that will release 100 million GAS over approximately 22 years. With Neo’s creation, 100 million Neo digital coins were made, and 50 million Neo were sold to early investors through an initial coin offering. The remaining 50 million Neo were locked into a smart contract. Each year, a maximum of 15 million Neo tokens are unlocked. 

What is the Major Function of Neo

The core of the Neo feature allows developers to deploy smart-contract applications on the Neo blockchain. In March 2018, NEO’s parent company Onchain distributed 1 Ontology token (ONT) for every 5 NEO held in a user’s cryptocurrency wallet. These tokens will be used to vote on system upgrades, identity verification mechanisms, and other governance issues on the NEO platform.

What are Smart Contracts?

Neo support smart contracts. Smart contracts allow the execution of transactions that contain an agreement among different parties without governance by any legal system or central mechanism. For example, the buyer and the seller of a piece of art might use a smart contract to reflect the agreement between the two parties. The execution of such contracts is based on the programming code of the network, and the coding allows traceability, transparency, and irreversibility of transactions.

What are the Benefits of Neo?

One of the key benefits of using Neo is that owners receive a dividend. The GAS token is the most beneficial advantage of the NEO platform. It’s an assets pairing mechanism that allows NEO holders to receive GAS. It is a dividend that is paid for holding NEO. The dividend is distributed as a formula. If you have NEO in your wallet, you will get GAS every day. For example, if you hold 1 NEO, you will get 0.000009 Gas per day. This dividend is a critical benefit of investing in cryptocurrency. Neo supports programming in all mainstream languages, including C#, Java, Go, Python, and Kotlin.

The creation of a smart contract between multiple parties is less extensive than other platforms. Unlike Ethereum, creating smart contracts on NEO doesn’t require you to learn a new programming language. This scenario means that any developer can get started and build an innovative economy on the NEO platform.

What is OnChain?

Onchain transactions refer to cryptocurrency transactions that occur on the blockchain. The validity of the transaction is dependent on the state of the blockchain. Onchain transactions are valid only when the blockchain is updated to reflect the transactions on the public ledger. Onchain transactions offer security and transparency as they cannot be altered, and the register is fixed forever. The transactions are verified and recorded on the network. The drawback is there is a fee associated with each Onchain transaction. Onchain transactions also come at a cost, as miners require a fee for offering their validation and authentication services.

Onchain transactions are different from off-chain transactions. Off-chain transactions are conducted outside of the blockchain network. Off-chain transactions are generally an agreement between two or more parties with a third-party guarantee that the transaction is valid. 

The Bottom Line

The upshot is that Neo is a digital platform similar to Ethereum in that it provides users with access to smart contracts. A smart contract is a contract between two parties that does not need a third party to verify the agreement. Neo is also much faster than other blockchain processes as the verification process is quick and efficient. The Neo platform also pays holders of the Neo digital coin a dividend which is a critical component of trading Neo as a cryptocurrency. Like other digital coins, Neo is an Onchain product that requires miners to verify the transaction, and its validity relies on the blockchain.

To Top

Pin It on Pinterest

Share This