Crypto Learning 3: Understanding NEO.

In the next installment of the Crypto learning series, where I try to gain an understanding about different developments and hopefully provide some useful information to you, we will be looking at NEO (formerly known as Antshares).

The NEO blockchain has two coins namely NEO and GAS. NEO has a minimum of 1 unit and can therefore not be subdivided. Gas on the other hand will be generated with each new block until the 100 000 000 cap is reached. A major advantage to NEO over most competitors is that developers do not need to learn any new programming language to develop DAPP’s or Smart Contracts as the new platform allows developers to use common programming languages like C#, Java, Python etc. This significantly lowers entry barriers for developers and is a major reason for NEO’s increased popularity.

NEO aims to create a smart economy and to understand this we need to understand the concepts in the following equation: Smart Economy = Digital Identity + Digital Assets + Smart Contract.

Digital Assets

The NEO Blockchain allows users to register and trade digital assets. Physical assets can be connected to digital assets using digital certificates/digital identity and this is protected by law. Furthermore, with Digital assets on the blockchain we can achieve a decentralized and transparent environment free of intermediaries, that ensures trust.

For me the best example is when buying property, you will be able to verify that the person selling you the property is in fact the owner because the asset has a digital certificate that gives you assurance.

Digital Identity.

NEO aims to digitize personal identity information of individuals and organizations. NEO looks to use biometric tools like voice recognition, fingerprints facial recognition to verify digital identities.

These Digital identities is how a buyer can verify that the seller of the property is who he says he is.

Smart Contracts.

For those of you who don’t know a smart contract is a program that executes when a pre-programed condition is met. The program that executes is generally the contract terms.

Continuing the property example, the Digital assets and certificates (therefore ownership) will be transferred when the payment is made. This will all occur automatically as the Smart Contract will execute once the preprogrammed condition (payment) is fulfilled.

Smart Economy.

Adding the three concepts: Digital Assets, Digital Identity and Smart Contracts allows NEO to create a smart economy.

My Opinion about the NEO development is that it is a very exciting and promising project and I think that it is brilliant that individuals can use familiar programming languages to develop DAPPs and Smart contracts. The concepts of Digital Assets and Identities paired with Smart contracts has the potential to create a smart economy. I am very excited about the potential of the NEO blockchain and think that it can rival Ethereum.