Basics of NEO [Explained in 3 minutes]


What is NEO? In this video, I will be going over the basics
of this cryptocurrency. NEO was developed by a blockchain R&D company
called Onchain. Launched in 2014 as AntShares, it was rebranded
as NEO in 2017. NEO focuses on innovating in the areas of
digital asset transfer, smart contracts, and digital identity verification. The NEO platform consists of two currencies. NEO and GAS. Both of which are capped at 100 million units. NEO is the pre-mined currency which represents
a share of the network. It cannot be divided below one coin like most
other currencies. GAS is the fuel that drives smart contracts
on the NEO network. Deploying and running smart contracts consumes
GAS proportional to the computing power used. New GAS is generated with each block. The amount generated is reduced by one token
every 2 million blocks. Once the 100 million cap is reached, no new
GAS will be created. Unlike NEO, GAS may be subdivided into much
smaller units. Collected GAS is distributed to holders of
NEO coin, based on their share of the network on a fixed schedule. GAS from transaction fees is distributed to
Book Keepers also known as Consensus Nodes in exchange for validating transactions on
the network. Every NEO coin holder has a vote. Coin holders elect Consensus Nodes who validate transactions,
create blocks, and make decisions for the blockchain such as creating transaction fees. If a Consenus Node is not acting in the interest
of the Network, coin holders can vote out that node. Much like Ethereum, NEO supports smart contracts. Smart contracts allow code to run on the network,
which imposes logic and rules on the transfer of funds. Simple examples of smart contracts include: Locking funds until a package is delivered. Or releasing cryptocurrency royalties to a
content owner each time a digital item is consumed One of the differences between NEO and Ethereum
is that Ethereum applications are coded in a proprietary language called Solidity. Whereas NEO applications support commonly
used languages such as Java, C# and VB.net Notable items in the NEO pipeline are NeoX,
which will allow transactions across blockchains. NeoFS, which will allow for decentralized
storage of files. And NeoQ, which will allow for quantum resistant
cryptographic methods within the NEO system. Thank you for joining me today. If you enjoyed this video, please like and
subscribe. Have a wonderful day.

8 thoughts on “Basics of NEO [Explained in 3 minutes]”

  1. It Is also notable to mention the benefits of holding neo is airdrops. You did mention gas and there are other airdrops that neo holders receive like ontology. Great video! I love the simplicity and clear explanation as this will help new people in the space understand the way neo works .

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