In translation from the Greek language, NEO means young, new. The use of such a name can be associated with the beginning of the modern era in the financial sector. The primary goal of NEO project managers was to create a digital model in the economy, which was given an informal name "Chinese Ethereum".
The smart economy is built on clever contracts, where it is quite common to use digital signatures as a reliable transaction confirmation mechanism. NEO smart-contracts are designed to regulate the business relationship between two or more parties. Thus, smart-contracts are a kind of legal protection in the digital economy, and a digital signature comes in the place of a ballpoint pen and a sheet of paper.
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The NEO system includes such functions and services as NeoX, NeoContract, NeoFS, NeoQ. All these mechanisms create an original ecosystem that operates on the basis of Blochain. NEO positions itself as a cloud service with the architecture of distributed networks. Blockchain technology supports new applications and can be integrated with classic business projects.
The variety of codes and software algorithms is a distinctive feature of NEO, at the same time, the centralized management model leaves a mark on the highlighted limitations in working with this platform. In fact, the release and subsequent distribution of coins (crowdfunding) can lead to sharp fluctuations in the value of coins and instability of the system as a whole. To date, NEO includes OnChain, which cooperates with both the Chinese government and the Internet giant Alibaba.
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Whether NEO will become a future platform for the next generation economy, time will tell. NEO developers and investors are doing their best to develop Blockchain cryptographic methods in the usual life, maybe that's why the volume of investments in this cryptocurrency reached a mark of 8 billion dollars.
Further growth in the popularity of NEO is attributed to the expansion of the sphere of influence to the western part of the world, where the views on the economy remain more conservative.
Editor: Yuliya Soroka