What Is Neo? A Guidance For Crypto Beginners

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Mrcoin

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Neo has gained a lot of attention in the cryptocurrency world by developing itself friendly (multiple language), eco-friendly (no energy waste) and community friendly (supports NEO-based projects). In this guide we’ll review all aspects of the Neo platform and how to buy Neo.​

1. What is Neo?

The original name of Neo is Antshares or Chinese Ethereum, the project was founded by Da Hongfei and Erik Zhang in 2014. In 2017, AntShares was rebranded as Neo.

Neo is an open-source blockchain platform developed to facilitate the easy construction of a digital economy complete with digital identities, assets, contracts, and payments. Neo has the ability to write decentralized applications (DApps) for decentralized exchanges, prediction markets and social networks, among others.

In addition, the Neo network also offers a host of other features to its users, including a decentralized file storage system, an identity system, and an oracle system for feeding external information to it.

Furthermore, Neo uses a unique governance system called Delegated Byzantine Fault Tolerant (dBFT) as its consensus mechanism for the computers that run its software.

Central to running operations on its blockchain are two native cryptocurrencies, NEO, for voting on protocol changes, and GAS, used to pay for computation on the network

Currently, there is about 65% of the total NEO supply in circulation:​
  • Total supply: 65,000,000 NEO​
  • Circulating supply: 100,000,000 NEO​
GAS is the fuel token for the realization of NEO network resource control, with a maximum total limit of 100 million. The NEO network charges for the operation and storage of tokens and smart contracts, thereby creating economic incentives for bookkeepers and preventing the abuse of resources. The minimum unit of GAS is 0.00000001.

About 100 million GAS, corresponding to the 100 million NEO, will be generated through a decay algorithm in over 22 years time to address holding NEO. If NEO is transferred to a new address, the subsequent GAS generated will be credited to the new address.​

2. How does Neo (NEO) work?

Neo’s platform allows developers to use its software to run smart contracts (known as NeoContracts) and design new programs (dapps) meant to replicate real world products and services.

Developers can build applications using a variety of popular existing languages including: C#, Java, C, C++, GO, JavaScript, Python, and Ruby rather than learn new languages like other smart contract-based protocols.

Moreover, NeoContract’s ability to work across various programming languages can be attractive to a larger pool of developers seeking to create dapps, or support existing ones.

To secure its blockchain and keep its distributed network of computers in sync, Neo employs a consensus mechanism method called delegated byzantine Fault Tolerant (dBFT).

dBFT works similarly to the delegated proof of stake (DPoS) and leverages a real-time voting system to determine which computers running the software can create the next block on the Neo blockchain. This means anyone who owns NEO can help operate the network.

Each NEO token (sometimes referred to as a Neo coin) can be locked, or “staked,” to represent a vote (the more staked NEO, the more voting power.) All owners who stake NEO then vote for the consensus nodes, who are responsible for creating blocks.

For proposing and adding new blocks to the Neo blockchain, consensus nodes receive the network’s transaction fees (paid in GAS cryptocurrency).​

3. Neo price


The live Neo price today is $10.55 USD and in 2022 the token appears to have found support at the $20 level based on the NEO price chart.

One concern is that the NEO token’s second bull cycle failed to make a new higher high and the NEO price now is trading below the 2018 ATH. Some investors would consider that an ‘echo bubble’ or ‘exit pump’ and a red flag.

However if the NEO price can reclaim $40 and flip that level to support it could move up to retest its former highs. It would then potentially form a cup and handle pattern which is a bullish pattern.​

4. How to buy Neo?


Follow these steps mentioned below to buy NEO in a few simple steps:

Step 1: Open an eToro account – Create an eToro account by clicking the ‘Join Now’ button and entering your details as mentioned. Verify your account by uploading a copy of your ID.

Step 2: Deposit funds into your account – USD deposits are not liable to pay fees on the platform and US clients can begin on the platform from as little as $10. You can choose from a variety of payment options to deposit funds, including debit/credit card, PayPal, bank wire, or any other supported method available on the platform.

Step 3: Search for NEO on eToro – On eToro to get to the page with the relevant asset class you want to invest in, search for it – in this case ‘NEO’ and then click on ‘Trade’.

Step 4: Buy NEO coin – At the end, decide the amount you want to invest using eToro, starting at $10. Click finally on ‘Open Trade’ to confirm.​
 

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