The Beginner’s Guide
Neo is a software platform that seeks to serve as an open source blockchain for anyone to use.
Neo is sometimes called the Ethereum of China because it shares many similarities with its more popular counterpart. For example, both Neo and Ethereum can be used to create dapps, prediction markets, and social networks.
Furthermore, the Neo network also provides a number of additional features to its users, such as a decentralized file storage system; an identity system; and an oracle system which feeds external information into it (such as price data).
Neo uses a unique consensus mechanism called Delegated Byzantine Failture Tolerant (dBTF) as its consensus mechanism.
To run operations on its blockchain, Nebulas uses two native cryptocurrencies, NEO for voting on protocol changes and GAS, used for paying for computation on the network.
Who created Neo?
Neo, launched as an Antshares, was developed by Da Hongfei (CEO) and Erick Zhang (CTO) in 2014, and rebranding to Neo in 2017.
The Antshares development team initially distributed their cryptocurrency, ANS, during a 2014 token sale, which raised over $6,100 worth of bitcoin. After ANS tokens were converted to NEO in 2016 with the team conducting a secondary token sale, raising over 8 million dollars, they released the total supply of NEO.
Half of the NEO’s total supply was released during the ICO. The remaining 50% was reserved for the development of the project, a community fund and to be invested in other projects.
How does Neo work?
Neo’s blockchain technology allows developers to create smart contracts and dapps that replicate real world products and service.
NeoContracts differ significantly from other smart contract-related protocols in that developers can use any programming language they already know, rather than learning a new one.
Therefore, NeoContract’ s ability to work across various coding languages can be attractive to both new and existing developers who wish to create decentralized applications (dapps) or support existing ones.
Delegated Byzantine Fault Tolerant
To ensure the security of their blockchain and maintain their distributed network of computers in a state of synchronization, Neo uses a consensus mechanism called Delegated Byzantine Fault Tolerance (dBFT).
Delegated Proof of Stake (DPOS) works similarly as Proof of Stake (PoS), but instead of using a centralized system for validating transactions, it uses a decentralized consensus protocol. Anyone who owns NEO tokens can help run the network by participating in governance.
Each NEO token has a value, which can be represented by the number of votes it represents. All NEO holders who stake their tokens then vote for the consensus node, which is responsible for creating blocks.
Consensus nodes receive the network‘s transaction fees (paid using GAS cryptocurrency) for proposing and adding new blocks.