How to Realize If NEO Is a Scam or Not?

What does NEO actually do?

NEO is looking to level up smart contracts to reduce and replace complex contracts across the business world. They want to make tracking property, like supply chain assets easy and automatic.

What is the Delegated Byzantine Fault Tolerant Algorithm?

NEO uses Delegated Byzantine Fault Tolerance (dBFT) as it’s consensus mechanism which offers lower electricity costs and removes the possibility of a chain split which makes it useful for its goal of digitizing real-world financial assets.

Holding Eth will generate you more eth (once eth goes proof of stake). In Neo’s scenario, its a little bit different. Holding Neo will generate you Gas.

Who stands behind Neo and are they able to implement this product?

The CEO Da Honfei always take care to reply a “Thanks for the feedback! These are good suggestions and I have passed them onto the team.” when the community asks for help. He did an AMA, he lives streamed from Tokyo. The team is accessible and not afraid to tackle the hard questions about their product head on. This is one of the main reasons why so many people trust them and invest in their product. The fact that the leadership is so sincere and really believes in the vision as opposed to faceless leaders of other coins indicates that isn’t just a scam.

What is the difference between Neo and Ether?

  1. First of all, Eth has more much more developers. Actually, Eth has more developers than anybody in the market right now.
  2. Eth feels like valid technology with so many dapps built on top of it, while Neo just got its first dapp this week.
  3. But Eth had the first mover advantage. It is really an advantage, history can point to Myspace and Facebook, where the later one won. Sometimes the first mover only opens up for other better copycats to come in. Only time will tell.
  4. With Eth heading towards a hypothetical roadmap with somewhat wishful technology milestones, Neo has a more concrete in the now development process. Will Neo miss the real innovation opportunity because of this, or will Eth lose its place on the way? You’re betting on different horses right here.
  5. Neo is traded on approximately 6 exchanges with the largest volume coming from a single exchange (mostly Bitcoin, not fiat), while Eth was already adopted by the biggest exchanges and trading shoulder to shoulder with Bitcoin.
  6. Eth got its place almost everywhere in the world, except Asia where Neo took advantage of the opportunity. Following Neo’s adoption, it is indeed geared towards Asia.
  7. In terms of value, Eth growth was over a much longer time period and did not go up nearly as fast, but these are different times.

Could Neo really solve the problem of scalability of Ether?

PoS (Proof of Stake) blockchain is especially cheap in transacting and very hard to beat. The point is that customer behavior doesn’t need to change. If you want to be able to move money between applications without going through the traditional banking system and have a common wallet that you can use on all the apps that you’re using you will need a decentralized solution. None of the blockchains has solved the scaling problem thus far. Especially at the scale of millions of users.

From whitepaper: “NEO will use fiat as its internal currency” – really, how?

Neo is a “share” of the smart economy, and let its owner decide on voting power depending on how many “shares” you own.

Gas is the “currency” in which anyone (regardless of NEO ownership) can use it to spend on the smart economy. You get dividends of Gas depending on how many NEO shares you own.

What the white paper is saying is that the smart economy is not restricted to using Gas alone; you may also use other forms of currency like Fiat to execute transactions as well.

Conclusion

Everyone treats it like a one or the other thing. Why does either side want the other to fall? Both sides should want each other to succeed, and both can together in an emerging market. Neo is similar to Eth, better in some ways, worse in others. Some developers and users will prefer Eth, others Neo. It’s up to you to choose one or, why not, both!

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