In the past 6 months Neo, former Antshare, has risen 8300% in value. As a result, the Blockchain known as the “Ethereum of China” has gained a lot of popularity among investors. Yet this nickname does not honor this Blockchain. Neo is much more than a decentralized application platform, but more a decentralized economy.
There is currently no way to buy NEO directly. So the only way to buy NEO is to purchase BTC to use on an exchange, and then switch it NEO.
Step 1: Choose Your Trading Platform
Firstly you will need to decide on your cryptocurrency trading platform and create an account there. The choice of platform isn’t very important as a beginner, what really matters is a trading platform that you are comfortable using..
Choose one of these platforms and complete the follow steps to get started:
Go to Binance and create a new account if you do not already have one.
Once your account has been confirmed, log in to your Binance account and click on funds at the top right, then “Deposits Withdrawal”.
Look in the “Bitcoin” list and click the Bitcoin deposit button. Then a series of numbers appears in the “BTC Deposit Address:” field. You must copy this series for the next step. This is your bitcoin wallet address.
STEP 2: Buy BTC
The second step is to get your Bitcoin, you can do that at a broker such as BTCdirect .
If you’re buying BTC for the first time from these brokers, you will be asked to confirm your bank account.
Upon payment you will be asked to enter a bitcoin address. You must fill in the address that you have copied at Binance.
STEP 3: Wait Until Your BTC Has Arrived
Once you have purchased Bitcoin and entered the correct BTC deposit address with the payment, you have to wait until the BTC arrives in your wallet.
This process can take up to ½ hour, so don’t worry if it’s not immediately visible on the exchange.
STEP 4: Buy NEO
Once your Bitcoin has arrived at your trading platform, it’s time to buy some NEO.
Go to the Binance trading exchange (click the top left on exchange and choose Basic) and use the search function within BTC Markets to find the NEO/BTC trade.
Once on the NEO/BTC trade page you can look in the left box marked with Buy NEO. Here you can decide how much NEO you want to buy using your Bitcoin.
If you then press Buy NEO your order will be placed. When the order is filled you will see your number of NEO on the right-hand box or on your balance page.
Congratulations you’re now the proud owner of NEO.
What is Neo (Antshares)
Neo, formerly known as Antshares, is a decentralized ledger / ledger protocol. Antshares was developed by the company ONCHAIN, based in Shanghai. “Antshares has the goal of digitizing assets, which makes registration, transactions, trade and agreements possible with a peer-to-peer network.”, Says Da Hongfei, CEO of both ONCHAIN and Neo. In July 2017, Antshares changed its name to Neo, or Neocoin.
Neo records all transactions and keeps track of all digital assets using e-contracts. If this is familiar, that is true. Neo (Antshares) is very similar to Ethereum . Who uses the similar concept of “smart contracts”.
Partly for this reason, it’s also often referred to online as the “Chinese Ethereum”. Neo is currently a hot topic, and has made huge leaps in value since its conception. This is due to several factors, but the biggest is the big support that this coin gets. Neo is supported by the Chinese government, and currently has large partners such as Alibaba, Wings and Microsoft.
The Chinese market is in itself more than enough to push Neo to the top 3 coins, but with the current partners and developments that this Blockchain is experiencing, its success is virtually guaranteed. It’s expected that Neo will achieve a similar market capital as Ethereum (if not more).
In addition to the current partnership, there is also another aspect that makes Neo unique among the other blockchains. Each blockchain has its own consensus to check the transactions and maintain integrity within the chain. Every consensus works in a different way and has its advantages and disadvantages.
- Proof of work – Bitcoin, Ethereum (currently)
- Proof of stake – Peercoin, NXT, Ethereum (future)
- Delegated Proof of work – BitShare, Crypti, Lisk
- UNL / Quorum Slice – Ripple, Stellar
- Delegated Byzantine Fault Tolerance – Neo, Hyperledger Fabric
A Blockchain always needs a method to check all transactions and thus bring the entire network to a consensus. One of the first methods and most common is the Proof of Work consensus, which is used in the Bitcoin and Ethereum network. The problem with a PoW consensus is that it requires a lot of computational power, but also electricity. So it is far from efficient!
One of the unique solutions for checking all blocks within a Blockchain is the dBFT (Delegated Byzantine Fault Tolerance). The operation of a dBFT consensus is a rather spicy and mathematical method. In this IBM article you will find a full description dBFT and its advantages and disadvantages compared to a Proof of Work consensus.
A simple example is to imagine the following: Suppose 12 people have to decide what time it rained last Monday. The whole group first asks Person 1 what time it rained on Monday. Person 1 told the group that it has rained at 12:00. 4 out of 12 people (less than 66%) agree, the rest do not. They do not agree with the time of Person 1.
The group then asks Person 5. He tells the group that it had rained at 11 o’clock last Monday. 8 out of 12 (more than 66%) people agree. Because more than 66% agree, the group agrees that it rained at 11 am last Monday.
NEO is made of many accounting nodes. A node is a point within the network where information goes and is received. Within the Neo blockchain these accounting nodes are used to check the transactions. The consensus has a tolerance of 33% bad and incorrect accounting nodes to do its job. These nodes are not anonymous and are decided by Neocoin holders by a voting system. This results in a very scalable system that requires very little electrical and computational power.
NEOCOIN WORKS lIKE SHARES
Neocoin works as a share within its own ecosystem. Not only can it be used to vote within the infrastructure, you are also rewarded daily for keeping your Neocoin within the Neo wallet. You can consider this reward as a kind of dividend that you would receive for having a share within a company. The difference is only that at Neo, the amount of “dividend” is determined by the amount of coins you own.
The reward you receive is GAS, formerly Antcoin (ANC), which is comparable to Ether in Ethereum.
GAS will gain more and more value as the NEO network becomes more popular. GAS has a lot of value within the network, and is used to make changes within the network. Neo is a Blockchain run by all its users. In addition to voting who the nodes will be, everything within the chain can be democratically decided. For example, the transaction costs!