Cryptocurrency derivatives trading is a new trading area that many daytime traders are interested in. Several people hold some experience and knowledge of What is NEO and Hw does it work. This article explains the basics of understanding of this.
What is NEO?
Alike to Ethereum and Cardano, NEO is a kind of open-source blockchain platform on top of which intelligent contracts and decentralized applications (so-called “Dapps”) can be run. NEO seldom referred to as the “Chinese Ethereum”, was basically launched under the name “Ant shares” in February 2014. This project was rebranded “NEO” in June 2017.
In brief, the NEO project is aimed at digitizing assets and automating the control of digital assets, in order to create a so-called “smart economics” such as an economy where people can accept a contract without the need to trust any other.
Simply like Ethereum, NEO itself is technically not a cryptocurrency. NEO’s native currency is called “GAS”. In these terms, GAS is a price to be paid to be admitted to utilizing NEO’s network. One could, in fact, say that it “fuels” the exchange. What is remarkable of the NEO exchange，and distinguishes it from the Ethereum and Cardano platform，is that containing the digital value “NEO” which may be described as some sort of hybrid crypto-asset automatically generates an amount of GAS over time.
NEO is depended on a consensus device known in the crypto-community as the delegated Byzantine Fault Tolerance (dBFT) algorithm, which could probably support 10.000 trade per second.
The total amount of NEO was “pre-mined”; half of them were sold in a crowdsale and the other half is managed by the NEO Council group of the project’s， its founders support development and maintenance of the NEO ecosystem.
How does it work?
NEO runs on an advanced blockchain
In order to become a trade validator on the NEO network, a validator candidate has to be selected by the advanced team and voted in by the NEO community for those who hold NEO. These features are typical for a permission blockchain.
NEO is immediately convertible into fiat currency, GAS is not
NEO can be directly converted into fiat money. However, our research shows that, at present, only one cryptocurrency exchange offers the option to immediately convert NEO into Euro, being Any coin Direct.
NEO’s native currency GAS can presently not be directly converted into fiat currency. Both NEO and GAS can, however, easily be exchanged for other cryptocurrencies ，for example through an exchange such as Bittrex. These cryptocurrencies can then be converted into fiat currency.
NEO’s GAS is NOT a medium of exchange
While NEO is working very closely with big tech companies like Microsoft, its native currency GAS is not a medium of exchange. Contrary to a number of other coins discussed above,
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