What is NEO

Is NEO a good investment? What does NEO do? Is NEO a reliable source?

What is NEO

What is Neo

The Chinese blockchain project launched a new N3 chain in 2021, setting another record for transaction processing speed. It has proven to be suitable for launching large-scale enterprise dapps. After reading the Neo cryptocurrency review, investors will be able to decide how promising the native coin is for long-term investments.

History of the Neo Cryptocurrency

One of the pioneers of non-commercial blockchain projects is the Neo platform. It is called the Chinese version of Ethereum, because it targets the same market: the creation of decentralized applications, DeFi financial tools, and the development of smart contracts. Thanks to it, a smart digital economy is being created.


Important dates in history:

Payments to programmers and other members of the Council 10 million (10%)
Motivation of developers from the ecosystem 10 million (10%)
Investments in adjacent blockchains that will be used to create projects 15 million (15%)
Emergency reserve 15 million (15%)

Cryptocurrency Features

Neo is a distributed network using blockchain technology. It allows you to digitize and manage different types of assets using smart contracts.

The creators position the platform as decentralized. The network is run by coin holders. They can vote using coins. However, organizations were created to coordinate actions:

The blockchain platform is a Chinese alternative to Ethereum, which is able to occupy its niche in the future, because it has advantages for developers. For example, smart contracts can be written in various popular programming languages, not just in Solidity. Based on the network, you get:

The most popular applications are presented in the table:

Flamingo DeFi, which allows trading of tokens, perpetual contracts and other assets. Native coin: FLM.
deep brain Decentralized neural network. Companies can use its computing power by paying out DBC tokens.
QLC Chain A secure environment for the provision of communication services. Native token: QLC.
Blockchain Cuties An NFT game in which you need to upgrade characters, fight with users.

What is Neo cryptocurrency in simple words

This is the first blockchain project to implement two coins at once. Cryptocurrency Neo is his native management coin. Gas is designed to pay for transactions, use the functionality of the platform.

The owners of the governance coin decide who will keep the operation going by voting for the members of the Council. In Gas, rewards are paid to both voters and selected nodes.

Features of digital units are presented in the table:

Minimum unit one 0.00000001
Functional Voting rights, investment, medium of exchange Pay for work, storage of assets, release of smart contracts, applications, transactions. The system fees are burned and the network fees are distributed among the consensus nodes, giving them an incentive to keep the platform running.
When created During the launch of the blockchain Each block generates 5 Gas. New units are distributed as follows: 10% - to the holders of the management coin, 80% - to those participating in voting, 10% - to the members of the Council. The amount of gas generated can be changed. Such decisions are made by the Council.

Key roles in the voting system:

neo price

The process goes on continuously. Consensus nodes and council members are re-elected every 21 blocks. Node owners receive commissions for maintaining the functionality of the network and creating new structures. That is, there is a financial incentive. The node that confirms transactions and creates a new block is charged fees for all transactions included in the structure.


Neo cryptocurrency is a popular coin that is included in the TOP-100 list according to CoinMarketCap. Its basic parameters are shown in the table:

Position on CoinMarketCap #39
Market capitalization $3.87 billion
Circulating supply in coins 70.5+ million (71%)
Minimum price since release $0.07229 (October 21, 2016)
The maximum exchange rate for the entire period $196.85 (January 15, 2018)

Principle of operation

The network works by using a delegated Byzantine Fault Tolerance (dBFT: 2.0.) algorithm to reach consensus. This type of protocol shows higher performance and scalability than PoS/PoW. He better resists dishonest participants. The developers of the algorithm were inspired by Practical Byzantine Fault Tolerance.

dBFT is based on the principle that cryptocoin holders participate in the selection of consensus nodes. The latter alternately perform 2 basic functions necessary to maintain the network:

The nodes are synchronized, checking for honesty and correctness. The 66.66% rule applies. If the operation involved 30%+ of nodes that compromised themselves, whose actions go beyond the established rules, the transaction will be postponed.

The work of the network is divided into rounds for coordination:

  1. Consensus nodes process operations and then add them to blocks.
  2. The speaker nodes accept the transaction, process it, and send it to the delegate nodes. The latter have identifiers, that is, they are not anonymous at all.
  3. Delegates check the correctness of the data. It is important to understand several factors: is there an operation in the block chain, is its format correct, is there double spending, is the contract scenario implemented correctly.
  4. Delegate nodes reach consensus. Then the block is signed, adding it to the general chain.
  5. A new round starts.

An updated version of dBFT 2.0 solves the fork problem. When a block is simultaneously between two nodes, it increases the level of scalability, performance and protection against intruders. Such an algorithm, unlike PoW, does not require large amounts of electricity and is therefore more environmentally friendly.

Transaction speed

Due to the dBFT consensus mechanism in the Legacy network, it took 15-20 seconds to create a block. The average transaction processing speed is 1000 tx/s with a potential of up to 4000 tx/s.
The new N3 chain can be even faster. Tests conducted by the St. Petersburg Competence Center (SPCC) showed that the network can overcome the previously only theoretical threshold of 10,000 TPS:

The block processing process can be further optimized, resulting in increased performance. But N3 is already showing that it is able to support large-scale commercial dapps and outperform its main competitor Ethereum with 15-17 TPS.

Distinctive features

Blockchain and native coin features:

Neo Cryptocurrency Technology

The N3 network is a major achievement that lowers the threshold barrier for dapps programmers. It provides access to a variety of sets of components for applications:

Issue of the coin

All management coins were generated at the start of the project. Their total number: 100 million Neo crypto units. You cannot create new ones.

Gas is created every 15-20 seconds when a new block is added to the chain. In 2021, this is 8 coins. Initially, when the network was launched, the Gas number was zero.

The number of issued coins is gradually decreasing: by 1 unit. per block per year. This reduction will be valid for 22 years from the launch of the network. If all goes according to plan, the maximum issuance of 100 million will be reached after the 44 million block. Details:

The distribution of Gas is carried out between the holders of Neo, members of the Council, voting. Each owner of a management coin can request to receive coins to their address.


There is an entire ecosystem behind the cryptocurrency, which includes a blockchain platform, management and research organizations, as well as development groups scattered around the world: NeoResearch in Brazil, COZ in the USA, AXLabs in Switzerland, NGD in Shanghai.

The coin is not tied to fiat currencies or backed by precious metals and assets, but a full-fledged community and large partners provide relative price stability. The limited emission mechanism also contributes to the rise in the price of the coin.

neo security


The functionality of the project is divided between two coins. Neo's primary use is platform management through a voting process. Apart from this, Neo’s review shows that it can be used for:

How to get

Coin mining through mining, which is available when using PoW, is not possible. But coins are easy to buy on exchanges or through exchange sites. Private transfer on prearranged terms is another popular option.

Exchange trading

The coin is available on all popular CEXs: KuCoin, Binance, Gate.io, Huobi Global. In addition, transactions are concluded on the platform without centralized control of Flamingo. DEX is released by the developers of the project. Trading through centralized exchanges is the most simple and secure.


Some sites make it possible to buy coins for fiat or other cryptocurrencies (BTC, DOT, ETH and others). It will also be possible to make a transfer from a bank card, online wallet, payment service. This method is less secure than buying on the exchange, and the liquidity of exchangers is lower.

Private transfer

The investor can negotiate the exchange with another user personally. There are special sites, groups for mutually beneficial deals. But the risk of encountering scammers in this situation is maximum.

Ways to earn money

The coin is suitable for long-term investment and trading. In addition, exchanges offer additional tools to save and increase income.


Compared to the low price of $0.07229, by September 2021, the price per coin has increased by almost 78,000%. The return on investment, according to CoinMarketCap, is estimated at 30,975.41%. This is a good indicator in comparison with others. In the fall of 2021, the altcoin has every reason to grow in price, because a new, even more scalable blockchain has been launched and asset migration has begun.


Spot and margin trading are available on the exchanges. The first option is suitable for beginners, it is less risky. To earn income, you need to buy coins at a drawdown and sell at an increased price. Leveraged trades are available on 8 exchanges: Binance, FTX, Huobi Global, OKEx and more. This is a more risky tool for experienced traders.

Passive income through exchanges

Popular CEX introduce tools for making money on cryptocurrency. Available options:

Where to buy Neo cryptocurrency

The most secure transactions are made through centralized exchanges. It is better to choose a platform from the TOP-10 list in terms of capitalization. The higher the liquidity, the better. Comments and feedback from other traders and investors will cut off scams and unsafe sites.

where to buy

What affects the rate of cryptocurrency

The coin has no real reinforcement, so its rate is highly volatile. Its change is influenced by a number of factors:

Where to store Neo cryptocurrency

Leaving coins in your CEX account after a purchase is not safe. It is better to use wallets, and hardware wallets are the most secure. The following models were released as part of the project:

You can use wallets from other developers that support NEP-17, NEP-5 standard tokens. Popular Model: Hardware Ledger.

The future and prospects of Neo cryptocurrency

In 2021-2022, the project will focus on switching to the N3 high-speed chain and phasing out the old one. By August 2021, the MainNEt setup was completed and the early asset migration phase began. The ecosystem is already equipped to accept users, their coins and dapps.

On August 9, the pre-launch of the network took place. Stage: "Early Bird"

In September, a mass migration of tokens began. It will last 9-12 months. To ensure a fast transition, the project will work closely with major exchanges. Some CEXs may offer early migration rewards.

Gas generation in the Legacy chain will be completely stopped. But the network itself will continue to function. Estimated closing time: 12 months after the launch of N3.

The developers plan to optimize the process of writing transactions to a block and further increase the scalability of the network. The priority will be to attract programmers to expand the dapps ecosystem: new DeFi, NFT markets, decentralized games will be created.

Analytics and forecasts

The native coin of the project has all the prerequisites to grow in price. Ecosystem participants are betting on a full-fledged launch and transition to the new N3 network and expect the coin to break its historical maximum in 2022-2023. Although independent crypto experts predict an uptrend, they are less optimistic: