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ETH vs NEO – Can NEO take Ethereum’s place?

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NEO
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The last couple of years have brought a lot of improvements when it comes to various cryptocurrencies, their use, as well as their adoption. Cryptos are not only fighting to survive and find their place in the world but are also constantly trying to best one another. Such is the case with the relatively new rivalry between NEO and Ethereum, with many people wondering if NEO is good enough to actually replace ETH in the near future. Let’s compare them and see how things look.

NEO vs ETH

Ethereum (ETH) is the crypto that dominated the second wave, or generation, of cryptocurrencies, with Bitcoin (BTC) making the first one. Thanks to the fact that it addressed and improved in areas where BTC lacks, ETH is quite capable of holding its own as the second most popular crypto in the world.

NEO, on the other hand, is a new crypto from the third generation, which has yet to choose its ultimate representative. Still, NEO wasn’t wasting time and has grown a lot in a short period of time, threatening to even best Ethereum itself. It is even nicknamed ‘Chinese Ethereum’, thanks to its popularity in this country, and generally in this part of the world.

The similarities between the two do not stop there, however, and these cryptos are actually a lot alike. Both are designed for creating smart contracts and dApps. which makes them different from Bitcoin, which is only designed to serve as a cryptocurrency. This means that they both aim to serve the same market, which puts them in direct competition with one another.

The differences

Besides the similarities, ETH and NEO still have a lot of important differences. The first difference is developer adoption, which is a factor that works much more in NEO’s favor. NEO is designed in a way that allows developers to work in various programming languages, including Java, C#, C++, and Go. If a programmer knows any of these languages, NEO will be available and useful to them. On the other hand, not only does Ethereum support only one programming language, but it is the one that its founders designed themselves, specifically for ETH’s purposes. This limits the number of capable developers to only a handful, which includes only those willing to learn this completely new language.

Another important difference between the two platforms is their transaction speed. Ethereum offers a much slower deal, and can barely handle 15 transactions per second. If you are not familiar with the transaction speed of other cryptos, this might not seem that bad to you. That is until you consider the fact that NEO can work with around 10,000 TPS. This means that NEO is on a much, much higher level when it comes to this specific issue.

Next, their blockchains. NEO has an interesting system, where its blockchain actually hosts two cryptos. NEO is the main one, which is used in trading, purchasing, and alike. However, there is another one, called GAS. GAS is used for the purposes of the blockchain, and it is received as a reward for NEO holders. They can then use GAS for paying for transactions within the blockchain.

Ethereum has a cryptocurrency called Ether, and it acts as NEO acts on NEO’s blockchain. However, Ethereum doesn’t have a different currency for the purposes of its blockchain, and instead only uses smaller amounts of Ether as its version of GAS. Basically, Ether acts like a dollar, and its smaller amounts work as cents. These ‘cents’ are called gas, not to be confused with NEO’s ‘GAS’.

This leads us to the next difference, which is divisibility, and this is where NEO is lacking since it is one of the rare cryptos that is indivisible. And, as we mentioned previously, ETH is divisible and uses gas for these small amounts.

Another big difference is that NEO is actually supported by China’s government, which is not known for being very open to cryptos. China views NEO as its response to Ethereum, which they do not accept in this country. Still, despite the fact that China accepts NEO, they do not control either of these two currencies, which leads us to decision making, and to their consensus mechanisms.

NEO has introduced Byzantine Fault Tolerant consensus mechanism, which is a massive improvement on the Proof-of-Stake mechanism. ETH, on the other hand, still uses Proof-of-Work, which is basically inferior even to the original PoS, and that clearly makes NEO superior in this area.

This doesn’t mean that Ethereum’s team is less capable. In fact, both teams are led by experts in the field of blockchain and cryptocurrency, with the difference of the developer community size – this is actually where Ethereum leads.

Conclusion

Obviously, both cryptos have their strengths and weaknesses. Both are also still constantly working on upgrading themselves, and on offering a better deal, in their own way. Because of that, the ‘race’ is still far from over. For now, the debate about which one is superior will have to remain unsettled. Still, the day will eventually come, when we will have a definitive answer, only not yet.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

The crash that analysts are predicting right now comes as a direct consequence of all the hype that has been building up in…

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Altcoins

Top 3 Coins to Buy Before They Go Big

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Crypto bulls are back, that much is clear. The long-lasting, harsh crypto winter is gone, and the new era in digital currency sector opens up some rather interesting opportunities. With many more bull runs expected to come in months ahead, a lot of coins are likely to blow up and maybe even hit new all-time highs, although that still remains purely theoretical.

On the other hand, the fact is that numerous coins are seeing prices that were not achieved since early 2018, and the overall momentum remains bullish. With that in mind, even if new records do not come for a very long time — chances are that many of the coins will blow up enough for investors to see some serious gains in months to come. As a result, investing in some of these coins now might be a very profitable decision, for those who have the patience to wait a few months. Here are some of the projects believed to have the greatest potential to go big in the second half of 2019 and beyond.

1. TRON (TRX)

Putting TRON on the list should not really surprise anyone, as the project constantly comes up with new project updates, partnerships, and alike. It also constantly breaks records, as is becoming one of the biggest players in the dApp and smart contract development sector.

In the past few…

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Blogs

Can Crypto Credit Cards Disrupt the Fight Against Financial Crime?

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It is commonly known that the world of finances has the biggest problem with the crime of all existing industries around the world. It has been so throughout history. While the financial world has evolved, so did the criminal activities, and they continue to be an issue. With the arrival of cryptocurrencies, many were hoping that financial crime might be disrupted. However, for now, at least, it appears that cryptos themselves cannot find a way to resolve issues such as international money laundering.

In fact, when it comes to money laundering, the crypto sector appears to be the weakest link, especially because of the nature of digital currencies. The anonymity that cryptos are being praised for means that anyone can get a payment from an unknown source from anywhere in the world. This method can then be used for financing drug trafficking, cyberattacks, terrorists, and more.

Until recently, it was not easy for bad actors to make use of cryptocurrencies obtained for illegal purposes. The number of merchants willing to accept the coins was low, and criminals were forced to find a way to exchange crypto into fiat currencies. However, this came with a set of issues, such as taking foreign exchange risks and then sending the money through wallets and exchanges to a banking system that would allow withdrawal. The banking account was the biggest obstacle here,…

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