NEO’s Target Market
There’s a lot of buzz going around the market about Chinese cryptocurrencies. For example, I have seen many posts about the platform coin called NEO. This is a cryptocurrency similar to other platform coins like Ethereum. Their target audience is the Chinese, and furthermore they also have the support of the Chinese Government. All this support has created a strong community of supporters surrounding the cryptocurrency. In this post I want to talk about how NEO might fit into the world and finally what is has to offer investors.
NEO had an 8% price increase today (July 5, 2018) on a down day for bitcoin and other top cryptocurrencies. This is a great sign for the strength of the cryptocurrency during a bear market. This pricing strength is in part due to the developers releasing a statement that the platform has entered “the era of decentralization.” During their development phase, NEO was notorious for its apparent centralization of the nodes. To solve this issue and move the platform forward, they are expanding main net operation to outside parties. The City of Zion is one of the first new operators of many that will be running nodes.
The Importance of Platform Coins
The cryptocurrency community is just starting to see the benefits of smart contracts. This technology is going to be essential to the success of the space and it’s changing the world. Platform coins enable the efficient development of smart contact based applications. These applications are typically decentralized and prove to be very valuable for businesses. There’s a huge market of businesses and industry that platform coins have the potential to impact. Therefore, I think many of the top platform coins have the potential to succeed due to this huge market.
NEO is a platform technology that aims to create a next generation smart economy. Their goal is to build upon the underlying technology of blockchain and create an infinitely scale-able ecosystem. There’s a lot of potential room to grow and succeed if they are able to achieve their mission. The community has often called NEO the “Chinese Ethereum.” Although they are both platform coins, they both have their own perks that make them unique. For this reason, we should keep in mind that each project has their own niche that they can fulfill.
The Next Generation Platform Coins
Just like how MySpace was one of the first social media sites, Ethereum is one of the first platform coins. Many technologies are being developed that improve upon this initial creation. The potential market is massive and there’s a huge area of potential improvements. Therefore, it’s likely that Ethereum and many of these other projects will still be around in the future due to continued development. The project’s success will depend on their ability to scale and maintain security.
NEO places a special emphasis on scalability, transaction speed, and security. Their development team has an eye on the future. The platform is made to be quantum computer cracking resistant and therefore prevent network attacks. These features make it a strong competitor in the space and many companies will look to NEO as a solution. Especially with the strong support of the Chinese Government and community, this project will hopefully go a long way.
The developers have implemented a unique feature for their smart economy. This feature involves half-life inflation over the course of 22 years. The goal for this is to provide additional funding for future investors and project development. The rate at which the token is inflated every year decreases with the half life. It’s an interesting idea, and we will have to see how it plays out in the future. The developers have also created a system for digital identification. This identification allows for real life assets to be tokenized and transferred. I think this is a fantastic idea and therefore I look forward to hopefully making use of it in the future.
Conclusions
Platform coins are going to be very important for the future of cryptocurrency. Also it’s important to note that each project has their own specific niche and target market. NEO is creating a infinitely scaleable platform for businesses to create applications on. Their digital identification process will create many potential use cases and drive adoption. Finally, in the midst of the Bear Market of 2018, the cryptocurrency is performing well. Neo’s 8% price increase is a good sign that the cryptocurrency is going to have a strong performance over the next few years.
References
Check these posts out to learn more about NEO.](https://www.coinbureau.com/analysis/neo-is-much-more-than-chinese-ethereum/)
Coin Bureau – Why NEO is Much More than a Chinese Ethereum
NEO Consensus – Byzantine Fault Tolerance
CCN- Neo Price Defies Stagnant Market
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