Given China’s government’s restrictions on cryptocurrency transactions, NEO may become the preferred cryptocurrency in the country, and possibly the world. Unlike other cryptocurrencies, NEO’s Onchain technology designed from the start to be regulator-friendly.
This may help it survive and grow in China, where government authorities are wary of bitcoin. The government is concerned about cryptocurrency speculation’s financial concerns. Moreover, its vast cryptocurrency mining activities drain the nation’s electricity supply, threatening environmental aims.
What Exactly is NEO?
Da Hongfei and Erik Zhan launched NEO as AntShares in China in 2014, and it calls NEO in June 2017. It’s a blockchain-based platform with its own coin and the ability to create digital assets and smart contracts. It is similar to the Ethereum blockchain network, situates in the United States.
NEO wants to use smart contracts to automate digital asset management and create a distributed network-based smart economy.
Digital Equivalents of the NEO Platform
(Digital Assets + Digital Identity + Smart Contract = Smart Economy) is how NEO explains its Smart Economy System in theory. On the NEO blockchain, assets may digitize readily in an open, decentralized, trustworthy, traceable, and transparent way, free of middlemen and their expenses.
Different types of assets can record, bought, sold, exchanged, or circulated by users. The NEO platform allows you to link a tangible object to a digital avatar that is unique to its network. NEO supports asset protection. Assets registered on its platform have a digital identity that verifies and is legally protected.
Digital identification allows for the verification of important information about participants, companies, and other entities.
Smart contracts enable transactions and agreements between parties without relying on a legal system or a central organization. The network’s programming code allows for transaction traceability, transparency, and irreversibility, as well as contract execution.
NEO is a cryptocurrency that supports two coins: NEO and GAS. It supports C#, Java, Go, Python, and Kotlin, allowing a large developer community to readily contribute.
Regulatory Compliance
NEO distinguishes itself from other basic blockchain networks by focusing on regulatory compliance. While other blockchain systems, like Ethereum, offer digitized assets and smart contracts, NEO’s “digital identity” distinguishes out.
On the NEO platform, any person, business, or organization must have a verified digital identity. The NEO network is compliant with rules since it allows people, corporations, and projects to transact with each other.
For transaction verification and other functions like accounting and bookkeeping, NEO nodes may demand identity.
Onchain
While working on NEO, Da Hongfei and Erik Zhan drew the attention of businesses seeking private blockchain solutions. As a result, Onchain, an independent technology corporation, was created in 2014 to provide blockchain solutions to businesses.
Onchain focuses on creating private and consortium blockchains to meet industry-specific needs, whereas NEO is similar to Bitcoin and Ethereum.
Onchain’s main product, Distributed Networks Architecture (DNA), creates private and public blockchains using digital asset applications to assist enterprises. DNA is a blockchain platform that can be adapted to solve problems in both the public and private sectors.
NEO vs. Onchain: What’s the Difference?
NEO and Onchain are independent entities. They don’t own each other. A client or even a community is the “C” in Onchain’s business-to-business (B2B) segment, whereas NEO focuses on business-to-consumer (B2C).
NEO is supported by the public, whereas Onchain is backed by Fosun, China’s largest private business.
“Their business includes banking, medical research, entertainment, and lifestyle, all of which have excellent synergies with blockchain technology,” said creator Da Hongfei. To demonstrate blockchain technology, Onchain chose Fosun Group as an investment partner.
The Goals
The founders of NEO and Onchain believe that in the future, they will be able to accomplish cross-chain interoperability. That is, a system will build to link and share data between blockchains, whether they are public, like NEO, or private, like those run by enterprises.
As the number of blockchain-based systems grows in both the public and private sectors, interoperability will become increasingly important. Through their continuous efforts, the NEO and Onchain teams intend to close this gap.
However, trust and identity become crucial in enabling such interoperability. The intrinsic Digital Identity function, which is an important element of the NEO blockchain platform, will replace that need.
A crucial bridge between decentralized, unregulated, and anonymous blockchain systems like Bitcoin and the standard KYC-compliance of today’s bank accounts and credit cards.
Taking an all-inclusive approach that tries to involve and serve the needs of all parties (individual users, network contributors like miners, transacting participants, private businesses, and even regulators) may be the best way for NEO and Onchain to provide a holistic solution to the ongoing rift between closed-economy regulators and open-system cryptocurrency enthusiasts.
China’s future prospects
Onchain’s DNA idea builds around the NEO platform. NEO is a decentralized public blockchain, whereas OnChain’s DNA is a private blockchain. By connecting these systems, the best of both worlds may realize.
The government of Guiyang, the capital of the Guizhou province in Southwest China, has already given Onchain its a blessing for DNA.
Despite its tough position on decentralized cryptocurrencies and initial coin offerings (ICOs). Reports are circulating that the government is searching for a different solution and is prepared to collaborate with firms that follow its laws. If this is accurate, NEO and Onchain, which are both Chinese startups, would be the front-runners.
If the potential Onchain technology recognizes and connects with the Chinese government and enterprises, allowing for an all-encompassing solution, NEO adoption will skyrocket.
