Meet NEO, The Cryptocurrency That Can Survive Heavy Regulations
Meet NEO- this cryptocurrency was initially created in China back in 2014 by AntShares representatives Da Hongfei and Erik Zhan and it was later rebranded in 2017. This cryptocurrency is a blockchain-based platform that can support its cryptocurrency and enables the development of the digital assets and smart contracts.
With the banks imposed by China, NEO got the potential to emerge as one of the most popular cryptocurrencies of the users in a heavily regulated nation and maybe across the globe. Since its inception, the OnChain technology of NEO was designed to regulator-friendly with a centralized approach which is very different from what the most cryptocurrencies have.
NEO aims to automate the management of digital assets with the use of smart contracts and also with an eventual aim of building a distributed network-based smart economy system. The cryptocurrency simply explains its technology as Smart Economy System since the assets can be easily digitized on the NEO blockchain in an open, decentralized and trustworthy manner which is free of intermediaries and their associated costs. The users are also able to record, buy, sell and exchange multiple kinds of assets.
The NEO platform allows the users to link the physical asset with an equivalent and unique digital avatar on its network and NEO also supports the protection of the assets. These assets are registered on its platform and have a validated digital identity which is protected by the law. Digital identity enables the verifiable key information about the participating individuals, other entities, organizations that can exist in the digital context. Check the video below and meet neo and find out whether it is still releveant today.
The smart contracts allow for the execution of transactions and agreements among the different parties without the governance by any legal system or central mechanism. The execution of such contracts is based on the programming code of the network which allows for traceability, irreversibility and transparency of transactions. NEO Supports two crypto Coins: NEO and GAS. It also supports programming in all mainstream languages including Kotlin, Go, Python, Java and C# which facilitates a huge community of developers to easily contribute to the platform.
NEO maintains a clear distinction from the other standard blockchain platforms because it is mostly focused on being regulatory-complaint. Some of the other digitized assets and smart contracts are popular on other platforms such as the Ethereum one and the third key feature is the digital identity that separates NEO from the rest. Every individual or other entity that operates with NEO and its platform, is expected to have a unique digital identity that can be verified. The users and businesses have the option to transact among themselves only if the other party has the required identity which makes the NEO network compliant with the regulations.
Even the many nodes on the NEO network may need to have identification before they can contribute to the transaction verification.
What Does OnChain Got To Do With All?
While creating NEO, the crypto founders Da Hongfei and Erik Zhan won the interest of many enterprises which were looking to find a private blockchain solution. This is where OnChain emerged back in 2014 which represents itself as a independent blockchain technology company that works with the needed financial and legal frameworks and provides the blockchain solutions to various enterprises. While NEO operates similarly as Bitcoin and Ethereum, OnChain focuses on the creation of private and consortium blockchains to meet the needs of the industry.
NEO And OnChain’s Differences
NEO and OnChain are two different entities that exist independently. NEO targets the business-to-consumer segment while OnChain focuses on business-to-business enterprise services. Both were funded separately since NEO was funded by a public community while OnChian is backed by China’s private conglomerate named Fosun.
The founder Da Hongfai was asked multiple times why he chose Fosun as an investment partner and he stated:
“The three major arms of their portfolio include finance, medical science, entertainment and lifestyle, which has good synergy with blockchain tech. This is why we chose Fosun Group as an investment partner, because we highly value the Enterprise resource that Fosun provide, a platform for Onchain to display blockchain technology.”
The founders had a vision that they will be able to achieve the cross-chain interoperability in the future and this is a mechanism that can connect and share the information between various blockchains whether they are public like NEO or private like those operated by other businesses. As the number of blockchain-based system continues to grow both in the private and public sector, there will be a need for interoperability among the various blockchains. NEO hopes to fill this gap along with OnChain and their growing network.
To enable such interoperability, the identity and trust have to become much more important. That gap will be filled by the intrinsic ‘’Digital Identity’’ feature which is an integral part of the NEO blockchain platform. Essentially, NEO could pave the path between the completely decentralized, anonymous and unregulated blockchain system like Bitcoin and the KYC-compliant economy that is everywhere in the present-day system of bank accounts.
By taking this approach, that attempts to involve and serve the needs of all parties and individual users, miners and transacting participants, private businesses and even regulators.
NEO As A Solution For China?
The platform acts as the foundation of the OnChain’s DNA concept. NEO provides decentralized public blockchain and when connected with the OnChain DNA that serves the private blockchains, by linking the two the systems could enable the best of both worlds.
OnChain has already reached an endorsement for DNA from the government of Guiyang which is the capital of Guizhou- a province in the SouthWest of China and both of the parties issued a joint smart contract and other Chinese blockchain technology upgrades in 2017. OnChain was among the first batch of companies that passed the blockchain test by the Chinese authorities and despite the ban from the government, the acceptance of blockchain technology is now more than a possibility thanks to NEO and OnChain.
The promising technology can be accepted and integrated with the government of China once they meet NEO and other businesses that will use the all-inclusive solution which will increase the widespread adoption of NEO.
The technical features of NEO and the OnChain concept with the centralized approach looks promising which makes it one of the most attractive options for the users not only in the Chinese region and authorities but for other governments that are wary of the anonymous and decentralized cryptocurrency market. It’s up to the users to meet NEO and decide whether to invest in this amazing asset or not.
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