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GAS, NEO, and the Network Flaw

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GAS
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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

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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Altcoins

ICTE May Bring About Sweeping Changes for Cryptocurrency Exchanges

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Cryptocurrency has taken the world by storm during the last few years. An entirely new financial market was created almost overnight which has captured the imagination of all its participants. Cryptocurrency is even starting to attract institutional money from investment banks, hedge funds, and other proprietary trading firms. Despite the rapid growth, traders remain extremely frustrated by having to deal with the fragmented nature of centralized crypto exchanges.

A Change is Needed

When cryptocurrency first began, there weren’t many participants and the trading volume was relatively insignificant. But, over time, that has radically changed. Some tokens now have a capitalization in the billions and are being traded 24-7 by institutions all over the world. Despite the volume, significant problems exist with the current way that exchanges work. Some of those problems include the following:

  • Constant fear of hackers
  • Exchange manipulation
  • Fragmented liquidity
  • Risk of identity theft

One of the biggest issues regarding centralized exchanges is the risk of being hacked. These hack stories seem to always be circulating around the internet. While experienced traders may have the tools to avoid becoming a victim, potential new traders have zero interest in dealing with this. And it’s not just the small exchanges that are at risk. Even large exchanges, such as Mt. Gox and Binance, are subject to being hacked.

Another huge risk is having to deal with…

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Altcoins

SonicX and Dash Could Challenge Facebook’s Libra for Global Payments Market Share

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SonicX
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When Satoshi Nakamoto unveiled Bitcoin to the world, the dream was always for Bitcoin to serve as a new universal currency.  It would be free from the bureaucracy of governments.  And free from the tyranny of the old-world financial cartels.  Although the dream hasn’t yet materialized, it comes closer and closer with each passing day.

One of the biggest roadblocks for Bitcoin has been scalability.  At a speed of approximately 7 transactions per second, Bitcoin lags behind other cryptocurrencies like Ripple and global payment processors like Visa.  Many expect the lightning network to have a positive impact on Bitcoin’s TPS but until that comes to fruition, mass adoption will likely need another significant development.

Libra Currency Announcement

One development that could help pave the way toward mass adoption is the launch of the Libra currency.  Libra is expected to go live during the first half of 2020 according to Facebook’s June announcement.  According to Facebook, Libra will make sending money online cheaper and faster.  It will also have a hand in improving access to financial services, especially for the unbanked.  Given Facebook’s global reach, including many third world countries, providing financial access to the unbanked could provide a huge spark to global economies.  Additionally, it could provide the growth spark that cryptocurrency needs.

Facebook’s most popular messenger, WhatsApp, has approximately 1.5 billion monthly users.  This application is…

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