NEO is a platform created with a purpose. If she can compete with Ethereum? And most importantly, should you?
Why do you like this article?
NEO or Ethereum – what pill will you choose?.. Sorry, couldn’t resist. This discussion is important to us, because we are investors. From the point of view of developers is the most important functionality. In the field of blockchain technology is not yet such a thing as brand loyalty, so if one or the other platform can offer something better than its competitors, it will win the sympathy of developers. So which platform is better cope with this challenge?
The article turned out long because I have studied all available information about NEO and Ethereum and outlined it for you. The differences between these two platforms written many articles, however, to determine the winner are of little use. These materials are too superficial, affecting only single aspects and do not explain why the differences between NEO and Ethereum generally important, and what is their significance for the real world. I was not able to find any comprehensive articles on this subject, and so I decided to write my own.
Have to admit that NEO I studied more in depth, because a huge amount of information about Ethereum can be found in a wide access. About NEO is written much smaller, so first I’ll tell you what you need to know about NEO, and then go on to compare its possibilities with Ethereum.
So be patient, make yourself a coffee and close to my office. This material deserves your time and attention. However, I understand if you look only given at the end of each summary with the summary section.
If Ethereum – Goliath, NEO is David. If Ethereum – brad pitt, NEO – his cousin Zach: cousin younger, more talented and better dressed, but while his destiny – to serve cocktails brad and his friends, staying in the shadows. Ethereum was the first, he made a real revolution and quickly conquered the world of cryptocurrency. He is a representative of the era of Web 3.0. Today almost every ICO (primary selling tokens) tokens are based on standard ERC20, and he Buterin considered one of the best minds of our time. If we have something and taught something in terms of market capitalization Alibaba is very close to Amazon, and WeChat holds a leading position in the social networking market of China, it’s that this country plays by its own rules, using its own technology and not paying attention to the actions of America. The question is whether the project NEO to compete with Ethereum, and if he needed it?
Recently both platforms claim to have similar roles in cryptosuite aiming to become the Foundation for the new Internet, namely for decentralized applications, ICO and smart contracts.
An overview of Ethereum and Neo
And NEO, and Ethereum, it is a universal blackany providing tools to potential developers, but they have different tasks that I would briefly outlined as follows:
Task Ethereum – a platform for developing decentralized applications, which, in turn, will create a more accessible, free and reliable Internet – Internet 3.0.
NEO – a project that uses blockchain technology and digital identity for digitizing assets, automation management with smart contracts and the implementation of the concept “smart« economy with a distributed network.
Quite confusing, isn’t it? Let us look at these goals to get to the bottom of each of the projects. It is important to understand that these platforms have largely similar capabilities, the differences between their stated goals are of great importance.
Ethereum: the goal of Ethereum is to become a platform for decentralized applications (DApp), and the project have been remarkably successful: he now effectively owns the market DApp. His whole strategy is, in fact, aims to give users and developers more control and possibilities to create their own applications.
NEO: working on a product of the future. The June rebranding project, formerly known as Antshares, was also accompanied by a shift of marketing strategy, and these changes have been extremely successful. The task of the NEO, which has recently been actively using the same technology as Ethereum, become a platform for new “smart” economy.
In Short: Ethereum develops in process of receipt of new requirements, and NEO in its development, trying to anticipate future needs.
What “smart” economy?
The major difference between Ethereum and NEO is that NEO is aimed primarily at the development of “smart” economy. If we want to fully understand NEO, we need first to understand why this distinction is so of great importance.
A smart economy will include a digitized physical assets. Proof of possession will be recorded in the blockchain. These assets can be sold, to buy and lay through smart contracts. Rights of ownership can protect and confirm with the decentralized model of the blockchain. We’ve seen a lot of similar options – from proposals for global modernization of supply channels to decentralized Autonomous organizations (in essence, the decentralized companies that do not have leader). Some of the real examples of such an economy is given in this article. Given that the functionality of Ethereum and NEO, likely largely overlap, the difference between the stated objectives of these platforms will gain a special meaning.
This difference is extremely important, so as to control and regulate the intelligent economy continues to be the government. I don’t trust him just the same as any libertarian – probably due to repeatedly read the novel “1984”. However, the fact remains – the government is not going anywhere, so developers platform aimed at the service, “smart” economy, it is worth pondering how to adapt it to the peculiarities of state regulation. Yes, the possibilities of Ethereum from the point of view blockchain-technologies may be similar, but the fact that NEO is being developed IT IS FOR THIS PURPOSE is of great importance.
SUMMARY: “Smart” economy is our future. To meet its needs, the framework needs to be developed with an eye to this new model.
As NEO prepares for the era of the “smart economy”?
The developers of NEO pay special attention the relevant laws and regulations.
To do this they need:
Authorities don’t like these guys
Anonymity is fine. I believe that all of today’s technological developments and discussions of this topic should emphasize, however, if companies and governments will work based on blockchain technology, digitalizing assets and releasing smart contracts – all under the watchful supervision of the government about anonymity is out of the question. For platforms wishing to stay in the legal field, the use of verifiable digital identity will become inevitable.
Today digital identity is built on the system PKI (Public Key Infrastructure) X. 509. Most likely, you it’s name says as little as I do. In reality it simply means the existence of the internationally agreed standard for developing a digital identity. The NEO plan is to create a digital identity in accordance with these regulations and their subsequent protection of these data using blockchain technology. Buccieri (from the English. “bookkeepers”, you will read about them later) will have a digital identity and real names, which will allow, if necessary, to take against them legal action. This is the primary requirement to register financial assets in the network and regulatory compliance.
From these considerations, some companies and projects are likely to do business only with those who has a digital identity, and NEO will give them that opportunity.
Currently, NEO is already working in strategic partnership with THEKEY, the project, developed on the NEO platform, which will provide digital identification of users.
What about Ethereum? Ethereum requires decentralized applications to develop their own digital IDs, which can then be stored in the Ethereum blockchain. This scheme is not too different from the model of NEO, however, the developers of the latter made it clear that the integration of digital identity is of great importance in the ecosystem of the project.
SUMMARY: governments do not like anonymity, but business representatives do not want to remove them from yourself. So if NEO wants to be accepted by big business, without a system of digital identification, he can not do.
The digital asset of the future?
For the formation of “smart economy” based on smart contracts, you need to be able to lay and to exchange and other assets in addition to currencies. We need tools for digitizing such assets as houses, cars, gold, diamonds, computers, clothing, food and even old baseball cards that your mom has long struggled to throw away. When we have the opportunity to digitize all of these assets, smart contracts will be much more powerful tool.
What about Ethereum? Here the situation is very similar to what was described in the paragraph about digital identity. Ethereum can certainly ensure the safety of digital assets, but the platform itself is unlikely to monitor their regulatory compliance. NEO, in turn, can guarantee it.
SUMMARY: Just read.
(To be continued.)