Neo Coin Explained

Neo is a cryptocurrency and software that powers multiple digital currencies and other smart contract applications, notably the Neo coin and Gas coin. Initially called “Antshares,” Neo was the first China-based blockchain platform, with features to support decentralized applications and smart contracts in addition to its own currencies.

This article will answer important questions about Neo coin, how Neo works, special Neo blockchain features; and other essential information on Neo coin, Gas coin, and the greater Neo ecosystem.

What Is Neo Coin?

Neo is a cryptocurrency running on the Neo blockchain. It launched in 2014 under the leadership of a team of developers who continue to serve as co-chairs of the Neo Foundation, the company behind Neo.

In addition to the Neo coin, the software powering Neo runs other cryptocurrencies, decentralized applications (dApps), and smart contracts through the Neo blockchain platform. In addition to the Neo coin, users of the Neo blockchain use the Gas coin, which is used to pay transaction fees.

Special Features of Neo

Unlike some currencies, Neo is part of a larger ecosystem of smart contracts, distributed apps, and other functionality. Features of the Neo software include decentralized storage, data security, and cross-chain interoperability, among others. Any cryptocurrency can launch on the Neo network using the NEP-5 standard.

In some ways, Neo is similar to Ethereum, which also supports smart contracts and dApps beyond its own currency. But unlike Ethereum, which requires Ethereum currency to pay transaction fees while Neo requires a second coin, Gas, to pay transaction fees.

How To Mine Neo Coin/Mining Neo Coin

Unlike many cryptocurrencies, Neo isn’t minable by the public. Mining is limited to a small number of consensus nodes, which power the high-speed transactions on the Neo network. According to Neo documentation, the Neo Foundation owns five of seven operating nodes, which means the Neo Foundation earns most mining fees.

Total Supply of Neo

Neo and Gas are limited to 100 million coins each. About half of Neo coins were held in reserve and are slowly being released through a smart contract to fund future development at the Neo Foundation.

How To Buy/Invest In Neo Coin

Neo isn’t as widely available as some larger cryptocurrencies, and it’s not available on major exchanges like Coinbase. However, some exchanges with a wider selection of currencies, such as Binance U.S., make Neo available for purchase.

Wallets

The official wallet for Neo is available to Windows, macOS, or Linux and is an open-source download. Other wallets with Neo support include the Ledger hardware wallet.

Fees and Expenses 

Users pay for transactions on the Neo blockchain with Gas. However, most transactions are free because of a built-in “system fee discount” of 10 Gas for each transaction. Fees are split between transaction fees, paid to the consensus nodes, and system fees, which are paid back to Neo holders through staking.

Notable Happenings

Neo has gone through a few major updates since its launch, including its name. Neo started as AntShares in 2014 and changed its name to Neo in 2017. The 2017 rebrand happened concurrently with version 2.0 of the platform. Version 3.0, known as N3, is taking place in 2021.