With the strict restrictions on cryptocurrency transactions that the Chinese government imposes, NEO is likely to become the currency of choice in China’s highly-regulated nation and worldwide. Since its beginning, the Onchain technology of NEO was created to be regulatory-friendly and has an approach to centralization which is distinct from the other cryptocurrency types.
This could help it remain viable and flourish even in China as regulators of the Chinese government are keeping a skeptical eye on the world of cryptocurrency. The government is worried about the risks to the financial security of cryptocurrency speculation. 1 And the massive mining operations for cryptocurrency are putting a strain on the electricity supply of the country that they’re threatening the country’s environmental goals.
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Neo Facts | What is NEO?
NEO was created in the form of AntShares in the hands of Da Hongfei and Erik Zhan in China in 2014. The company was rebranded to NEO at the end of June 2017. It is a platform based on blockchain, which supports its cryptocurrency and allows the creation of digital assets and smart contracts. In this regard, it is similar to its counterpart, the U.S.-based Ethereum blockchain network.
NEO is a project to automatize the administration of digital assets by using smart contracts and the ultimate goal of creating an intelligent economy based on distributed networks system.
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What is Cryptocurrency? Digital Equivalents (DEQ) on the NEO Platform
NEO conceptually defines the Smart Economy System as (Digital Assets + Smart Contract + Digital Identity = Smart Economy).
Assets can be easily digitalized using NEO. Assets can be easily digitized on the NEO blockchain. The blockchain is a decentralized, open, secure, traceable, and transparent way devoid of intermediaries and their fees.
Users can track and sell, buy, exchange, or circulate diverse types of assets. The NEO platform allows linking the physical asset to an identical and unique digital avatar accessible on the network. NEO also protects assets. The registered assets on the platform have an authenticated digital identity and are protected under the law.
Digital identity provides verifiable and authentic details about the participants and organizations, and entities in the digital world.
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Smart contracts permit the execution of agreements and transactions between various parties that are not controlled by any central legal system or mechanism. The execution of these contracts is dependent on the program code of the network. These codes allow traceability, transparency, and the immutability of transactions.
NEO has two cryptocurrency coins, NEO and GAS. It allows programming in all major languages such as C#, Java, Go, Python, and Kotlin and allows an extensive developer community to easily contribute to the platform.
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Concentrate on Regulatory Compliance
NEO maintains a clear distinction from other standard blockchain platforms focusing on being regulatory-compliant. While digital assets and smart contracts are commonplace on other platforms such as Ethereum, The third major characteristic of the “digital identity” distinguishes NEO from the other blockchains.
Every business, person, or other entity that operates using the NEO platform must possess a unique digital identity that can be verified. People, businesses, and projects can transact among themselves only if the other party has the required identity, which makes the NEO network regulatory-compliant.
The various nodes of the NEO network could require an identification number before they can help in the verification of transactions as well as other tasks like bookkeeping and accounting.
Enter Onchain
As they worked on NEO, the cryptocurrency’s founders Da Hongfei and Erik Zhan won the interest of various companies searching for private blockchain options. This led to the establishment in the year 2014 by Onchain. This first independent technology company can work with the legal and financial frameworks and offers blockchain-related solutions to various businesses.
While NEO functions like Bitcoin and Ethereum, Onchain focuses on developing blockchains that are private and collective to meet the needs of the business.
Onchain’s most popular service, Distributed Networks Architecture (DNA), is a digital asset app to assist businesses in creating blockchains that are both public and private. DNA is considered the most secure blockchain platform, which can be customized to solve many different issues both in the public and private sectors.
What is the difference between NEO and Onchain differ?
NEO and Onchain are distinct and independent entities, and neither of them owns the other. NEO concentrates on the business-to-consumer ( B2C) segment — where the “C” could refer to the customer or even a community — while Onchain concentrates on business-to-business ( B2B) enterprise services.
NEO is supported by a community of people, as is Onchain. Onchain is owned by China’s biggest private conglomerate, known as Fosun.
When asked why he selected Fosun for an investment partnership, the founder Da Hongfei said: “The three major branches of their portfolio are finance, medical sciences entertainment, lifestyle, and finance that have a good synergy with blockchain technology. That’s why we picked Fosun Group as an investment partner because we respect Fosun’s Enterprise source that Fosun offers, an online platform for Onchain to showcase the blockchain tech.”
NEO and Onchain Their Vision
The founding members of NEO and Onchain believe that they can achieve cross-chain interoperability later on. In other words, a method will be created to share and connect information between blockchains, regardless of whether they’re public like NEO or private like the ones operated by companies.
Blockchain-based applications grow in both private and public areas; there will eventually be the need for interoperability between the various systems. The teams of NEO and Onchain expect to fill this gap with their ongoing work.
To enable this interoperability, the trust and identity of users become essential. This gap will be addressed by the inherent Digital Identity feature, an integral element of the NEO blockchain platform.
In essence, NEO and Onchain may provide the needed middle way between decentralized, non-regulated, and untraceable blockchain-based systems such as Bitcoin and the traditional KYC-compliance in the present credit and bank accounts.
In pursuing an all-inclusive model which aims to engage and satisfy the needs of everyone involved–individual users network contributors such as miners as well as transacting members as well as private companies, and even regulators–NEO, as well as Onchain, are ideally placed to offer a comprehensive solution to the current rift between open-system regulators and closed-economy cryptocurrency enthusiasts.
A Solution to China?
The NEO platform is the base of Onchain’s DNA idea. NEO offers decentralized, public blockchains, while OnChain’s DNA meets the demand to create private blockchains. Connecting these systems could allow the most efficient of both.
Onchain has already received an endorsement of DNA from the Guiyang government. Guiyang is the capital of the Guizhou province in Southwest China.
Despite its firm stance on the different decentralized cryptocurrencies and ICOs, There are speculations that the government could be seeking a different solution and is open to collaboration with companies who will adhere to its regulations. Since they are locally-based Chinese companies, NEO and Onchain would be the most likely candidates if this is the case.
If the highly promising Onchain technology is accepted and integrated into the Chinese government and business, creating an all-inclusive solution will significantly increase the widespread acceptance of NEO.
Investing in cryptocurrencies or Initial Coin Offerings (“ICOs”) is extremely risky. This article is not an endorsement or recommendation by Investopedia or the author to invest in cryptos or ICOs. Since every circumstance is unique and requires a professional with experience is recommended to consult before making any financial decision. Investopedia does not make any claims or representations regarding the timeliness or accuracy of the information provided herein. When writing for this post, the writer does not own any cryptocurrency.
