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GAS, NEO, and the Network Flaw

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GAS

In case you are holding GAS or NEO tokens (or even both of these, which is mostly the case), you have surely noticed that these two currencies had an amazingly rapid jump in price over the last week, including the end of February and the beginning of March. Apparently, there was a flaw detected within NEO network which affected the price of these currencies to suddenly drop at the rapid pace. Let’s see what exactly is going on with GAS at the current moment, as well as find out more about the recent error in the system.

A Little Reminder about GAS

GAS is one of the currencies launched by NEO, the biggest decentralized blockchain network in China that is most similar to Ethereum and the way Ethereum works. GAS currency is limited to 100 million coins and it serves the purpose of powering up NEO platform.

GAS is actually planted locally within this platform and its circulation is always lesser in the number of circulating coins when compared to NEO. There must always be more NEO tokens than GAS tokens available on the market in circulation

This is the case because NEO platform is programmed to reward 0.00000008 GAS for a single NEO per one processed block. That additionally means that rewards for a processed block in oppose to the number of NEO tokens will allow GAS to drop by 0.02 when being rewarded. Each year, the reward in GAS will drop by 0.02, which should last for 22 years until GAS rewards reach 0.02 in the end. After reaching this number, 0.02 will become a fixed reward.

At the time of this writing, transactions with NEO are completely free, but won’t always be the case because all transaction fees in the future will be collected in form of GAS token.

Anyways, the main purpose of this token is to control the network and the way NEO works. That way, when people are using NEO platform for creating smart contracts and making decentralized applications, they will need to use GAS at the end in order to verify this process.

Before being allowed to deploy their applications, all decentralized app developers (NEO users) have to pay fees in order to have their program up and running. Fees are being charged in form of GAS tokens. After NEO network receives these GAS tokens used to pay fees for publishing applications within their ecosystem, the tokens are being recycled to NEO tokens and back to GAS tokens that are being rewarded.

Consequently, with the growth of this platform, the need for GAS will rise as well, producing more GAS by using NEO tokens.

The Flaw within the Network

After remembering what GAS is all about within its parental network NEO, we can now focus on the issue that occurred a week ago.

As you might already know, chains within any blockchain-based decentralized system are working on different nodes. Usually, these nodes, although connected in a way, are still working separately. That is because you don’t want the entire network or a crucial part of the network to fail only because one node had an issue in its system. That is why it is mostly the case that all nodes, although connected and working mutually for the same cause, are made to work as separate portions of the decentralized network. That way if a node crashes, the other nodes would keep running, consequently allowing the network to run flawlessly despite an issue as the detected error is being taken care of.

Apparently, NEO had only a single node crashing, which made the entire system paralyzed for a couple of hours. The node that crashed was actually a consensus node and it crashed during the consensus process. Because of this crash, all other nodes remained inactive waiting for the consensus node to start reacting in any way. The developers were working for hours on removing this problem, which they eventually succeeded in.

Although the problem with consensus node was solved after hours of working on that issue, the crashing node discovered another problem that might have cost NEO and GAS a handful of investors.

The effects of this issue can also be seen in the dropping price of both, NEO coin and GAS token as it seems that a portion of holders and investors is giving up their coins, having them sold or exchanged.

The issue revealed was incorporated deeply into the system of NEO decentralized network which led to a discovery that this network has troubles with having centralized portions within the system. This centralized nature is precisely why one failing node could affect the failure of all working nodes, which shouldn’t be the case with decentralized networks.

Given the fact that NEO is the largest decentralized platform in China, competing with Ethereum as announced on their behalf, the developers are working on a daily basis to solve the issue with having centralized partitions within their blockchain system.

If NEO developers do not address this problem in a timely manner, the current state of the network will result in losing investors in the near future.

GAS and NEO: Price

With the recent case of a failing node within the system of NEO platform, both NEO and GAS started to drop. The falling continues till the date of the writing on March 6th, having these currencies additionally lowered in price.

At the current moment, after the latest drop of -8.32% per one unit, you can buy NEO at 108.62$ per one unit.

GAS, after the latest fall that occurred in the last 24 hours lost -9.46% of its price so this token is now currently worth 31.35$ per one unit.

In case the developers don’t take time to solve the issue of having centralized partitions within their system, the price will most probably drop even lower in the following weeks.

We will be updating our subscribers as soon as we know more. For the latest updates on GAS, sign up below!

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.

Image courtesy of Paul Hudson via Flickr

Altcoins

XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange

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Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //

Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.

Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.

The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.

NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.

NFTs are already being actively traded in markets globally. For…

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Altcoins

Should Crypto Projects Devote Resources to Community Growth and Marketing?

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2020 has been an incredible year for crypto as investors have generated windfall profits and crypto projects have seen their businesses gain the spotlight they’ve been looking for.  While Bitcoin has received most of the attention after major institutional investors announced they were accumulating the increasingly scarce asset, many altcoins have also seen their fair share of glory.  When looking at all the big winners of the past year, the first project that probably comes to mind is Chainlink, having appreciated by more than 550% YTD and now valued at over $4.5 billion.  But, the actual biggest winner of the year is HEX with a YTD return of over 5,000%.

I mention both of the above projects as they have each taken slightly different paths to achieve greatness.  Chainlink has devoted resources toward building a fundamentally sound business with many strategic partnerships while HEX has spent vast sums of money on marketing and promotion.  Both approaches are valid, but one thing is certain, it is absolutely imperative for crypto projects to let the crypto community know what makes them special.  Of course, one of the reasons that makes crypto so valuable is the powerful blockchain technology that most projects are utilizing.

Cryptocurrency vs. Blockchain Technology

It’s important to make a distinction between blockchain technology and cryptocurrency.  Although they are often used interchangeably, they are different.  Blockchain technology and crypto were both created after the 2008 financial crisis, but cryptocurrency…

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Altcoins

XENO starts VIP NFT trading service and collaborates with contemporary artist Hiro Yamagata

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Hong Kong, Hong Kong, 24th December, 2020, // ChainWire //

The XENO NFT Hub (https://xno.live) will provide a crypto-powered digital items and collectables trading platform allowing users to create, buy, and sell NFTs. Additionally it will support auction based listings, governance and voting mechanisms, trade history tracking, user rating and other advanced features.

As a first step towards its fully comprehensive service, XENO NFT Hub launched a recent VIP service to select users and early adopters in December 2020 with plans for a full Public Beta to open in June 2021. 

“NFTs are extremely flexible in their usage, from digital event tickets to artwork, and while NFTs have a very wide spectrum of uses and categories XENO will initially focus its partnership efforts and its own item curation on three primary areas: gaming, sports & entertainment, and collectibles.”, said XENO NFT Hub president Anthony Di Franco.

He also added “This does not mean we will prohibit other types of NFTs from our ecosystem However, it simply means that XENO’s efforts as a company will be targeted into these verticals initially as a cohesive business approach.”

Development and Procurement Lead, Gabby Dizon explained, “Despite our initial focus, we found ourselves with a unique opportunity to host some of the works of Mr. Hiro Yamagata. We are collaborating with Japanese artist Hiro Yamagata to enshrine some of his artwork into NFTs.”

Mr. Yamagata has been…

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