N E O is the name of a cryptocurrency and blockchain platform that allows users to create their own digital assets and trade them with others using smart contracts. The project was first started in 2014, although it went by the name AntShares. It was created by a Chinese programmer named Da Hongfei and since its 2014 launch, one has become the most popular cryptocurrency in China.
When assets are traded through the platform, their proof of ownership is tokenized instead of the asset being tokenized. This allows all the legal obligations and complications to be accounted for so that assets, shares, and equity can be traded safely and securely. As for the actual cryptocurrency, buying a token is like owning a piece of the NEO platform. This gives owners the right to vote on changes to the protocol of the blockchain.
The token utilizes a delegated consensus mechanism called Byzantine Fault Tolerance which allows it to handle as many as 10,000 transactions every single second. You can stake the NEO tokens to generate something called GAS tokens. These GAS tokens are considered fuel for the NEO platform which people use to pay for smart contract deployment and computation within the network.
The total number of NEO tokens issued is 100 million. This is how many the Genesis Block created and then distributed throughout the network. It represents all of the blockchain ownership. There will never be any more NEO tokens created, which means the value of the existing tokens is only going to increase as the demand for them increases too.
The creator of the NEO platform has huge plans for it. He hopes they will establish a smart economy which utilizes a public ledger for trading assets and allows people to transfer money around by writing smart contracts. Of course, the users will have to meet certain conditions before they can do this. Hongfei describes it as a lot like how a computer program functions.
The overall concept is to have transactions become more reliable for people. It seems that investors of cryptocurrency are seeing the potential in this token. In mid-December of last year, the price of one NEO token was $59.94. One month later in mid-January, the price of one token was $136.75. This is a 128% increase in the value just one month later. The market capitalization is a whopping $8.8 billion, making it the 8th biggest cryptocurrency worldwide.