Credit: Shutterstock photoCould the crypto market have its teeth ready to sink into $300 billion? It appears the volatile space is starting to regain traction with a welcome rally. After 2017’s highs broke, it left the crypto market on a bearish trend in 2018. Crypto bulls remain adamant: this game of hot potato is worth all the sweat. Enthusiasts can’t help but look ahead and wonder: which coin will rule the roost?
Using the screener platform at Coinwatch.com, we got the scoop on the latest data in the cryptocurrency market. Let’s explore.
Mainstream crypto investors would tell you the answer is clear. The globe’s first decentralized digital currency Bitcoin (BTC) remains the giant leading the bandwagon. Others would make a case for Ethereum (ETH), as it boasts a whopping 547 active blockchain projects and is second in crypto only to Bitcoin. In the race to lead the crypto-verse, we’ve got our eyes on a dark horse dubbed the “Chinese Ethereum” or China’s “Ethereum killer,” Neo (NEO).
Once called Antshares, the altcoin was rebranded as Neo last summer and serves as China’s “first ever” open-source public blockchain. We believe the altcoin is primed to one day breathe down Ethereum’s neck.
Today, Neo ranks #11 among the crypto coins and has jumped roughly 6% in the last week. Though this coin’s price hits $36.36 today, here’s why we think Neo could one day rocket right past Ethereum. This decentralized app platform was created to score the backing of the Chinese government. Look no further than other Chinese giants from Alibaba (BABA) to Baidu (BIDU). Neo treads in the footsteps of success stories like these who were savvy to operate under China’s regulations.
Ethereum transformed the blockchain universe with its introduction of smart contracts. Neo also utilizes Turing-complete smart contracts and is designed as a platform for a smart economy. Here’s the challenge with Ethereum: the crypto universe’s second leading blockchain relies on a proof-of-work algorithm that struggles to handle big transaction volumes. In other words, the Ethereum network gets clogged, and it leaves crypto users unsatisfied. Ethereum co-creator Vitalik Buterin has vowed to improve Ethereum’s scalability with new technology, an in-house solution called sharding.
Neo does not use Ethereum’s proof-of-work consensus mechanism with all its congestion challenges. Instead, the blockchain relies on a simpler consensus algorithm known as Delegated Byzantine Fault Tolerance (dBFT). This means improved scaling and performance; a double win.
Although the dBFT consensus mechanism comes with its own doubled edged sword: centralization. The plus for Team Neo is worth it: the team believes the platform’s scalability can manage a monster 1,000 transactions per second. To address the centralized system, Neo has created City of Zeon as a play for further decentralization, a worldwide independent group of open source developers, designers, and translators. City of Zeon was intended to bolster the NEO core and ecosystem.
Let’s talk about the regulation factor. China is notorious for clamping down on crypto trading, with regulatory authorities strictly regulating Bitcoin. Some attribute regulation apprehensions to one of the downfalls of the crypto market. China’s central bank just indicated Bitcoin trading in Chinese fiat has plunged to under 1% of the globe’s total, according to Xinhua.net’s latest report. Compared to a high soaring past 90%, the stark impact of China’s heavy crypto regulation is clear.
This is precisely why Neo could be the dark horse of the market. Neo’s Onchain technology has an advantageous priority: to be compliant with Chinese regulations. Onchain centers on creating private and consortium chains to fulfill the industry’s definitive needs. A regulatory-friendly coin not blocked by a colossal Chinese market could see a massive rise in ranking.
Neo could attract developers to its platform, which supports two crypto coins: NEO and GAS. With smart contracts running in all the mainstream coding languages (C#, Java, Go, Python, Kotlin), the blockchain could draw a big pool of developers here. Any programmer in the globe could write apps to smart contracts using Neo’s platform, much easier than the platforms that set a new language hurdle.
Bottom line: Neo – deploying digital identities to cultivate a smart economy – may be the 11th biggest coin in the crypto game today, but it has what it takes to one day bring the hammer down on Ethereum.
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This article was written by Julie Lamb.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
