Ethereum is making waves recently as it is quickly becoming the cryptocurrency of choice. But there’s a similar Chinese cryptocurrency that’s making a name for itself, and it’s called “NEO”.
Are you up to date with the latest global cryptocurrency trends? There so much going on around the globe that it can be an uphill battle to stay updated with exciting news. And one country never seems to disappoint: China. China is always making big financial moves and keep the global market on its toes.
In this article, we will cover the basic similarities and differences between China’s NEO, and the trite and true Ethereum (ETH).
What is Ethereum?
Created by Vitalik Buterin. Ethereum is the 2nd most popular cryptocurrency behind bitcoin. It’s a blockchain platform with its very own cryptocurrency. Ethereum’s native is called Ether (ETH) or Ethereum. The platform even has its own programming language, called Solidity.
Ethereum is a blockchain network and a decentralized public ledger that’s used to verify and record the transactions that take place on it. Users on Ethereum’s network can use applications on the platform, monetize, create, publish, and use its Ether cryptocurrency as payment. Ethereum is second in line in market value only to Bitcoin.
The creators of Ethereum wanted to use its technology to take the place of third-party apps or entities that store people’s data and keep track of complex financial happenings.
What is NEO?
Founded in China by Da Hongfei and Erik Zhan in 2014, NEO is a cryptocurrency that many people have dubbed, “the Chinese Ethereum.” When it first appeared on the scene, it was called “AntShares” but the name later changed to NEO.
It’s a blockchain-based platform that is capable of supporting its own currency and even can handle the development of digital assets and smart contracts – just like Ethereum.
Neo’s network has tons of unique features. Features like an oracle system which is used for feeding external information to the decentralized file storage system, an identity system, and a one of a kind governance system called Delegated Byzantine Fault Tolerant (dBFT).
How does NEO differ from Ethereum?
Although they may be similar in many ways, Ethereum and NEO do have their fair share of differences. The first being that Neo is backed by the Chinese Government, whereas Ethereum’s developers and supports form a democratic foundation.
The fact that the Chinese government has made statements in NEO’s favor, has helped the altcoin soar in popularity in recent years.
The second major difference between NEO and ETH, their relative mechanisms. Neo is known for its energy-efficient consensus mechanism that’s called dBFT, which stands for decentralized Byzantium Fault Tolerant, which allows it to function at a much faster rate of 10,000 transactions per second.
And lastly, the “Chinese Ethereum” supports more computer languages such as Java and C#. Ethereum on the other hand uses Solidity.
How are NEO and Ethereum similar?
As you can see, the two cryptocurrency giants do have many differences, but on their core, they are quite similar. They are both blockchain-based platforms. They both have their own native currencies and are capable of executing complex smart contracts. Both NEO and Ethereum allow for the use of decentralized applications (dApps) and ICOs.
And finally, both cryptocurrencies are very popular and are thought to be the crypto platforms of the future. Although they are smaller and less valuable than Bitcoin, both NEO and ETH have tons of potential.
Want to get started with buying ETH?
If you’re ready to get started in investing in cryptocurrency, it’s important to find the right market for you. Bitvavo is one of Europe’s leading exchanges. It’s a great place to get caught up on the ETH and BTC changes in value, so you can always make a well-informed decision, for pros and amateurs alike.
Bitvavo allows users to “exchange more than 50 digital assets directly with euros. Create an account and trade a wide range of digital assets.” Choosing the right market for buying, exchanging, and selling cryptocurrencies can make a world of a difference.
According to their website, Bitvavo “aims to make digital assets available for everyone through low and transparent fees, a wide range of assets and a simple and easy to use interface”.
Ethereum has its competition cut out for it, but even today, with top competitors like NEO and Ethereum Classic, and Cardano, Ethereum still has the upper hand. Only time will tell, but judging by ETH’s track record, they are doing things right.
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