NEO (cryptocurrency)

NEO is a blockchain-based platform that aims to create a smart economy by combining digital assets, digital identity and smart contracts. It features digital certificates, P2P exchange, support for multiple types of digital assets, support for multiple programming language for developing smart contracts, virtual machine, use of Byzantine Fault Tolerance Algorithm for consensus, Lattice cryptography-based signing and cross-chain asset swap protocol.

NEO plans to update its platform to version 3.0, known as #3 as early as 2021. As a project started in June 2018, the N3 update represents the biggest achievement in Neo's history. This update is designed to bring the first universal experience in blockchain development and implementation to the platform. It should be equipped with new powerful functionality. These features include distributed storage, oracles, and name services. Neo N3 also boasts a simpler and more modular architecture than its predecessors, as well as an improved control model and economy.

As we mentioned earlier, Neo uses Delegated Byzantine Fault Tolerance, and it’s estimated that the blockchain is capable of processing thousands of transactions per second.

According to Neo, the dBFT mechanism has been inspired by the Practical Byzantine Fault Tolerance algorithm.

There are a couple of similarities with delegated proof-of-stake, given how both consensus mechanisms allow token holders to vote for the delegates who will process transactions.

Through dBFT, blocks are added to a blockchain as long as at least two-thirds of delegates reach consensus — and it’s hoped that this helps prevent bad actors from undermining the smooth running of the network.