China is well-known for its discipline in rules and regulations. One of the regulations it imposed was on cryptocurrency — restricting the crypto transaction, which means no transaction through bitprofit.software and exchanges through any crypto exchange. However, considering the regulations, one crypto network came with a better answer — a more regulated system — NEO.
Decentralized systems drive other cryptocurrencies like Bitcoin and Ethereum. These cryptocurrencies aren’t any closer to being regulated, but given China, it was necessary to have regulated cryptocurrencies. NEO, one of the cryptocurrencies specifically designed using Onchain technology that offers a controlled system with a centralized structure, was seen as an appropriate choice in light of this. The regulatory component was the primary element that made NEO stand out from the competition.
With the volatile nature of cryptocurrencies and factors that significantly affect them, Chinese authorities saw it as a significant risk. They also held the opinion that at the rate it is growing, it will eventually consume all the electricity used to produce power, devastatingly affecting the environment.
Get to Know about NEO
In 2014, Erik Zhan and Da Hongfei founded AntShares, which later in 2017 was given the name NEO.
NEO is very much similar to Ethereum. It uses its own blockchain platform to develop cryptocurrency-enabled products like digital assets and smart contracts; therefore, its workings are comparable to those of the Ethereum blockchain. However, NEO is focusing on developing a smart economic system for its future objectives. In order to streamline access to digital assets, the platform is based on distributed network plans to deploy smart contracts.
Digital Counter Parts Present in the NEO
Three factors, when combined to create a smart economic system, are the foundation of NEO’s platform’s philosophy of the smart economy:
- Digital assets
- Digital Identity
- Smart contracts
The NEO offers users using several platform functions linked to assets. Among these characteristics are:
- Digitizing the assets will be simple as blockchain assets can become open, transparent, accessible, decentralized, credible, and cost-free with no third-party involvement.
- Users will be able to exchange, trade, and relocate their assets around.
- Users can connect their tangible assets to their digital avatars.
- Proper asset protection for registered platform users after having their digital identities verified. (Digital verification enables the platform to validate information about those participating)
On the other hand, the system employs smart contracts to enable decentralized transactions. Such transactions are carried out using network codes, which are also traceable, transparent, and irrevocable.
NEO and Gas are the two coins that the NEO platform supports. Additionally, its platform supports all major languages, such as Python, Java, C#, and others. Making the platform accessible is the goal for developers of various languages to contribute to and add value to the platform.
Emphasis on Regulatory Requirements
The NEO’s primary goal has always been to offer a controlled blockchain platform to the crypto currency market exchange industry. It differs from other blockchain networks due to its regulatory restrictions.
Other blockchain networks already include elements like digital assets and smart contracts. However, NEO is doing differently by adding digital identity for validation.
Each participant, whether a person or a company, must have their identification validated using a digital identity. Additionally, the site only allows transactions between two parties, provided both parties have their identities validated. Utilizing this feature, NEO has kept the platform’s regulatory requirements in place.
Apart from participants, all platform nodes must undergo digital identity validation since, without it, no one can carry out any activity on the platform.
How are NEO and Onchain Different?
There are several things that you need to understand about NEO and Onchain:
- NEO and Onchain are entirely separate entities.
- Onchain focuses on the business-to-business space.
- NEO is an entity that targets the business-to-consumer/community region.
- Onchain is backed by Fosun, a private company in China.
- NEO is a public community.
Da Hongfei claims that its company significantly depends on four areas: healthcare, entertainment, finances, and lifestyle. And all four of these factors strongly relate to blockchain technology. Because Fosun focuses on these four areas and potentially has a significant impact on the development of blockchains, his organization opted to engage with them.
The partnership between NEO and Onchain aims to establish cross-chain interoperability exclusively. In other words, both organizations seek to create a blockchain that allows for sharing of data between them.