The year is only three months old, but the crypto currency NEO has already experienced some ups and downs. The true potential of the platform is only inadequately reflected by the price development of the coin. Let’s take a closer look at the direction in which the NEO project could develop this year.
Less than a month ago we presented possible alternatives to Ethereum in terms of initial coin offerings. While Ethereum currently offers the dominant platform for the launch of ICOs, at the beginning of 2018, a number of other blockchains are already emerging that will also provide the necessary technological infrastructure. Among them, NEO is probably the most promising platform when it comes to challenging Ethereum’s dominance.
How accurate is the comparison with Ethereum really?
So let’s take a closer look at what could actually expect something new from NEO this year. Even in the pre-NEO period, when the coin was still named AntShares, there was already talk of the “Chinese Ethereum” with regard to the still young platform. But how accurate is this comparison?
Founded in 2014, the project’s underlying idea was and is to transform the traditional economy and society in the areas of digitization and automation and move it towards a smart economy. The NEO blockchain uses technologies such as peer-to-peer networking, dBFT consensus and smart contracts. The functions and possibilities are therefore different from those of Ethereum and in some cases go beyond.
ICOs on the NEO blockchain
Since the beginning of the year, NEO started like the fire brigade and has already launched four new ICOs on its blockchain in the first two months: DeepBrain, QLINK, Trinity Network Credit and Zeepin. Together with the token Red Pulse and Gas, the fuel of the NEO platform, which has existed since the end of October 2017, six tokens are currently listed that are based on the NEO blockchain. Zeepin is the lowest ranked with 275, all other NEO based tokens are placed in the Top 200. Thus NEO delivers the best inventory of all development-supporting platforms to Ethereum.
But we are already back to the big comparison with the first man. Despite all the differences, this comparison will certainly not be so wrong for the creators of NEO, after all, NEO is striving, similar to Lisk, to build an entire ecosystem on its own technology. NEO’s website also states that it is working on the creation of an entire decentralized “smart economy”. NEO considers digital assets, digital identities and smart contracts as essential building blocks for a smart economy.
Not everything’s in the green?
So everything ready for the transfer of power? Critical voices from the crypto scene also have their say. Especially the apparently close ties between the NEO development team and the Chinese Communist Party raise concerns in many places – especially against the background of the restrictive crypto policy of the Chinese government. Shortly after the ICO ban in China, there had been rumours that all ICOs would have to be handled via NEO in future – a centering that would suit both NEO and the Chinese government.
The actual performance of the platform is also questioned by some very pessimistic observers. The recent abundance of ICOs presents the network with greater challenges than it would like. During the launch of an ICO or shortly afterwards, for example, there had been repeated reports that the network had temporarily failed or wallets were unusable. In addition, the NEO platform should not be as user and developer friendly as it looks. It is said to be very difficult for code developers to create NEO-based smart contracts. Also, setting up a Smart Contract on NEO with a fee of currently 500 GAS is not exactly cost-saving.
Even if something is definitely emerging in the East – NEO will very probably not be a serious threat to Ethereum’s top spot in 2018 either. The very expression danger is misleading in this context – should it be the aspiration of a decentralized community to have a market-boosting competition for the development of new blockchain projects. Therefore, the Smart Economy Network of NEO is not necessarily a supplant, but rather a complement to Ethereum, with other main emphases, strengths and weaknesses.