Another day another coin bursts onto Cryptocurrency scene. This time it is the young Chinese Alt-Coin NEO that is making waves. After hovering at a paltry $6-8 for the last few months the upstart currency has exploded in value over the last two weeks, reaching highs of $42. with no sign of slowing it looks like NEO could be poised to shake up the market. The question is whether NEO has what it takes to become China’s Ethereum.
NEO is fighting to become China’s Ethereum
Formerly known as Antshares, NEO is a based on the same concept as Ethereum’s smart contracts. Neo uses a unique blockchain that closes the “Gate-ins” exploited by contract hackers on Ethereum. The currency takes decentralized commerce a step further by giving its currency the capacity to identify and digitize real world assets. NEO cemented its place in the top ten cryptocurrencies in early August. Now it is rapidly climbing its way through the ranks with little sign of stopping.
The founders of NEO have already stated their ambitions to become Chinas Ethereum and they are well on their way. NEO’s currency, ANS, has already gained a strong foothold in the Chinese stock exchange and owners of ANS can already exchange their tokens for real world goods, such as gas. Neo’s team is also highly respected in China. They have been active in the community and have built up a lot of trust for their project.
Just as Ethereum recently gained the tentative backing of the Russian authorities NEO is cozying up to the Chinese government. The currency is cooperating with the Chinese certificating authorities. NEO’s smart contracts 2.0 technology will be used to help map real world assets. This signals a desire from the Chinese government to work with the cryptocurrency rather than crack down it. Which is essential if NEO is going to have any chance to become China’s Ethereum.
Smart Contracts 2.0 is NEOs secret weapon
Both Ethereum and NEO use smart contracts. Smart contracts are software that can track and automate the fulfillment of agreements over a blockchain. This gives a lot of flexibility for business-to-business enterprises. It gives businesses the option to cut out the middleman and automated purchasing and selling products on their supply chain, cutting costs and improving efficiency.
Both Ethereum and NEO’s smart contracts have similar capabilities but NEO’s Smart Contracts 2.0 has one huge advantage over Ethereum. Ethereum requires developers to learn the solidity programming language in order to use their smart contracts. This limits its attractiveness to developers and potential increases the cost of setting up a smart contract with Ethereum. In comparison NEO developers can use any programming language via a compiler. This is really significant for NEO as it will help them to attract a larger more diverse community of developers which should help to keep costs down and ensure that innovative ideas can thrive.
NEO is constantly compared to Ethereum and this is a good thing
Ethereum showed the world that Bitcoin could be used to conduct business. It was the first currency to really enter the mainstream and it has gained the support of many big corporate players. Ethereum’s smart contracts have been used as the basis for many Initial Coin Offerings and it has begun to change the way we view investment. All of this has led to Ethereum skyrocketing in value. Many look at what NEO is offering and believe that it could do the same.
Both currencies are based on the concept of using smart contracts to de-centralise the economy. They are both designed to make cryptocurrency useful to the average person. Ethereum and NEO, at their core, are both idealistic enterprises designed to cut out the middle-man and change the way we do business. The difference is that NEO has access to a far larger, far friendly market.
Ethereum is certainly the smart contract of choice for Western markets but western governments are traditionally leery of alternative currencies. Banks have begun to warm up to the idea of cryptocurrencies but many governments are unsure how to react. In comparison NEO has a very strong hold in the Asian markets. Eastern governments have proven to be more open to the idea of cryptocurrencies, in part due to unstable Fiat currencies. On top of friendly governments NEO also has access to a very friendly market. Chinese investors are already interested in cryptocurrencies and its market has the potential to dwarf western ones. If NEO can gain the backing of the Chinese authorities then it will have cemented its place as China’s Ethereum.
NEO has the potential to unseat Ethereum
It is hard to miss the potential that NEO has. It is climbing rapidly up the top 10 Cryptocurrencies in terms of market share and shows little sign of stopping. The team behind NEO have learned lessons from Ethereum and done their utmost to improve on it in every single way. The question isn’t so much when NEO will overtake Ethereum. It is what can Ethereum do to stop them?