About Neo token (NEO)

Neo token Frequently Asked Questions (FAQ)

What is the main purpose of the NEO token within its blockchain ecosystem?


The main purpose of the NEO token within its blockchain ecosystem is to represent a share of ownership in the NEO blockchain, provide governance rights such as voting for bookkeeping or network parameter changes, and to enable the creation of digital assets and smart contracts.




How does NEO's dual token model function?


NEO operates on a dual token model comprising NEO and GAS tokens. The NEO token represents ownership of the NEO blockchain and is used for governance, allowing holders to vote on network decisions. GAS token, on the other hand, is used to pay for transaction fees and smart contract deployments, acting as the 'fuel' for the NEO network. GAS is generated with each new block on the blockchain and is distributed to NEO holders.




What consensus mechanism does NEO use and why is it considered unique?


NEO uses the Delegated Byzantine Fault Tolerance (dBFT) consensus mechanism. It is considered unique because it allows for high transaction throughput, finality in transactions (meaning once they're confirmed, they can't be reversed), and it requires fewer participating nodes to achieve consensus, reducing the risk of a single point of failure.




In what ways does NEO aim to comply with regulatory standards?


NEO aims to comply with regulatory standards by implementing a digital identity for individuals, businesses, and assets, enabling the creation of a regulatory-compliant chain of users. It also allows smart contracts to access these identities to ensure compliance for real-world applications.




Who are the key founders of NEO and what are their roles?


The key founders of NEO are Da Hongfei and Erik Zhang. Da Hongfei serves as the public face and strategic leader of the project, while Erik Zhang plays a crucial role in its technical development, having contributed heavily to coding the blockchain protocol.




What programming languages are supported by NEO for smart contract development?


NEO supports several programming languages for smart contract development, including C#, Python, Java, and more through its NeoVM compiler.




How does NEO's smart economy concept integrate digital assets, identities, and contracts?


NEO's smart economy is built on the integration of digital assets, digital identities, and smart contracts. Using blockchain technology, digital assets are digitized and decentralized, making them traceable and trustless. Digital identities allow individuals and organizations to authenticate and sign transactions securely. Smart contracts automate transactions and enforce agreements without intermediaries, creating a seamless, efficient, and interconnected economic system.




What is meant by NEO being the 'Chinese Ethereum' and how does it compare?


NEO is dubbed the 'Chinese Ethereum' because it is a blockchain platform similar to Ethereum, originating from China, and offering comparable functionalities like smart contracts and dApp development. Compared to Ethereum, NEO emphasizes regulatory compliance and uses a different consensus mechanism called dBFT, aimed to provide faster transactions and a more energy-efficient system.




Can you explain the concept of digital identity within the NEO platform?


Digital identity within the NEO platform is a system that enables users to create and control a digital version of their identity information. This secure and trustworthy identity verification is facilitated through the use of blockchain technology, which ensures that the digital identities are immutable and cannot be tampered with. NEO's digital identity system employs various forms of multi-factor authentication, such as fingerprints, facial recognition, voice recognition, and SMS, ensuring a robust and secure approach to identity verification.




What are GAS tokens and how are they used in NEO's platform?


GAS tokens are a separate cryptocurrency used within the NEO platform to fuel transactions and smart contracts. Users pay transaction fees and deploy and run smart contracts on the NEO network using GAS. GAS is generated with each new block on the NEO blockchain and is distributed to NEO token holders.