The Rise and Glory of NEO, the “Chinese Ethereum”
In a recent interview, NEO’s founder Da Hongfei affirms, “It’s time for regulation.” Known as the “Chinese Ethereum” NEO is the 11th largest cryptocurrency with a market cap of $9 billion. It has a very different structure from Bitcoin.
The design philosophy serves financial services with a consensus protocol called Delegated Byzantine Fault Tolerance (dBFT). dBFT is an alternative to Proof-of-Work (PoW) and Proof-of-Stake (PoS). After studying cryptography for several years, NEO’s team believes that the dBFT protocol is superior. Reports EconoTimes, “It provides swift transaction verification times, de-incentivises most attack vectors and upholds a single blockchain version with no risk of forks or alternative blockchain records emerging – regardless of how much computing power, or coins an attacker possesses.”
The goal of NEO is to be a “smart economy”. Says Hongfei, “I imagine in the future, the economy will be smart. Because as of today, the cost of trust is so high. We are paying lawyers; we are paying governments; we are paying different professionals to build trust between trading parties. We believe with blockchain technologies, with NEO, in the future the cost of trust will be minimized.”
When asked about Bitcoin, cryptocurrencies and illicit activities like money laundering, he concludes, “Anything can be used for bad purpose, but we need to look at the positive signs. I still believe blockcahin technology has a huge potential to change the future of human society, so please focus on the technology.”
NEO is up 139% since January 1st and is trading at a new all-time high of $180. Ripple is down 19% for the same period.