Given the recent bans implemented by China, NEO has the potential to emerge as a cryptocurrency of option in the highly-controlled country, and maybe around the globe. Since its inception, NEO’s Onchain technology has been developed to be regulatory-friendly with a centralized approach that is somewhat distinct from most cryptocurrencies.
NEO was created as AntShares by Da Hongfei and Erik Zhan in China in 2014 and was renamed “NEO” in June 2017. It is a blockchain-based network that supports its own cryptocurrency and allows digital assets and smart contracts to be created.
NEO aims to simplify the ownership of digital properties through the use of smart contracts, with the ultimate aim of creating a distributed network-based decentralized economy structure.
Digital Alternatives on the NEO Platform
NEO defines the Smart Economy StrucSystem ure as (Digital Assets + Digital Identity + Smart Contract = Smart Economy)
Assets can be conveniently digitized on the NEO blockchain in an accessible, decentralized, trustworthy, traceable and transparent fashion, free of intermediaries and their connected costs.
Users are able to register, buy, sell, trade or share various kinds of properties. The NEO platform enables the physical object to be connected to an identical and exclusive digital model on its network. NEO also supports the security of properties. The properties listed on its website have a validated digital identity and are secured by statute.
Digital identity enables verifiable key information on participating individuals, organizations and other entities that exist in the digital context.
Smart contracts facilitate the execution of transactions and arrangements between various parties without any legal framework or central process. The execution of these contracts is based on the network programming language, and coding allows traceability, consistency and non-reversibility of transactions.
NEO is funding two crypto assets, NEO and GAS. It supports programming in all popular languages, including C#, Java, Go, Python, and Kotlin, making it easy for a wide group of developers to connect to its website.
Emphasis on the Regulatory
NEO retains a strong difference from other mainstream blockchain systems, as it insists on being regulatory-compliant. Although digital assets and smart contracts are common on other blockchain networks including Ethereum, the third main aspect of what it calls its “digital identity” distinguishes NEO from the rest.
Any person, company or other organization operating on the NEO platform is supposed to have a unique digital identity that can be confirmed. Individuals, companies and ventures have the option of behaving on their own even if the other party has the requisite identification, which makes the NEO network regulatory-compliant.
Also the different nodes on the NEO network need to be established before they can contribute to the authentication of transactions and other operations such as accounting and bookkeeping.
While working on NEO, the founders of the cryptocurrency, Da Hongfei and Erik Zhan, have gained the attention of numerous businesses searching for private blockchain solutions. As a result, Onchain emerged in 2014 as an independent technology company that works with the necessary financial and legal frameworks and provides blockchain solutions to various companies.
Although NEO operates like bitcoin and ethereum, Onchain focuses on developing private and consortium blockchains to address the unique needs of the industry.
Onchain’s key feature, Distributed Networks Architecture (DNA), uses digital asset software to help companies build private and public blockchains. DNA is claimed to be a blockchain network that can be tailored to tackle all manner of of problems in both the private and public sectors.
NEO and Onchain: How They Compare
NEO and Onchain are distinct entities that operate separately, and none owns the other. NEO addresses the business-to-consumer (B2C) segment — where the “C” may apply to a client or even a community — while Onchain focuses on business-to-market (B2B) business services.
Both are financed separately. NEO is financed by the public community, while Onchain is supported by China’s largest private conglomerate, called Fosun.
When asked why he picked Fosun as an investment partner, Founder Da Hongfei said that their portfolio’s three main arms include banking, medical technology, culture and lifestyle, with strong synergy with blockchain software. That’s why they choose Fosun Group as an investment partner because they highly value Fosun’s Enterprise resource, Onchain’s platform to view blockchain technology.
NEO and Onchain: The Vision
NEO and Onchain’s shared founders hope to be able to achieve cross-chain interoperability throughout the future. In other words, a system will be created to link and share information between the different blockchains, whether they are public, NEO or private, such as those run by companies.
As the number of blockchain-based networks continues to expand in both public and private contexts, there will inevitably be a need for interoperability between various blockchains. Teams at NEO and Onchain are aiming to fill this void through their ongoing research.
However, to allow this interoperability, trust and identity are becoming necessary. That void would be filled by an intrinsic “Digital Identity” feature that is an integral part of the NEO blockchain network.
Essentially, NEO and Onchain will pave the much-needed middle ground between a completely transparent, unregulated and private blockchain network like bitcoin and the traditional KYC-compliant ecosystem that is the present framework of bank accounts and credit cards.
Through pursuing an all-inclusive strategy that aims to involve and meet the interests of all parties — individual customers, network members such as miners, transaction participants, private companies and even regulators — NEO and Onchain could be better positioned to offer a systemic response to the emerging rift between closed-economy regulators and open-system cryptocurrency enthusiasts.
An Answer for China?
The NEO platform is the base of Onchain’s DNA framework. NEO supplies open, public blockchains while Onchain’s DNA meets the need for private blockchains. Linking each of these systems will make the best of both worlds possible.
Onchain has already received a DNA endorsement from the Government of Guiyang, the capital of Guizhou Province in Southwest China. Both parties jointly launched smart contract 2.0 and other Chinese blockchain technologies at the beginning of 2017.
In mid-2017, Onchain was one of the first groups of companies to successfully pass the Chinese blockchain test, followed by an investment alliance with Fosun Group. Despite China’s recent tightening of its hold on cryptocurrency, adoption of blockchain technology is a strong possibility.
In mid-2017, the Chinese government announced that it was investigating the possibility of developing its own national cryptocurrency.
Given its stern position on the numerous digital cryptocurrencies and ICOs, there are reports that the government might be searching for an acceptable approach and is open to negotiating with businesses able to conform with its laws. Being local Chinese companies, NEO and Onchain are the top contenders, if that’s true.
If Onchain’s innovative technologies can be adopted and incorporated with the Chinese government and companies allowing an all-inclusive approach, the universal use of NEO would significantly improve.
The technological robustness of the NEO-Onchain concept and its unified approach are appealing, making it an enticing choice not just for the Chinese authorities but also for other foreign governments who are wary of an open and decentralized virtual currency market.