Charles H. Miller
NEO is one of the most sought after cryptocurrencies in the Far East, prompting many people to call it the “Ethereum of China.” (related: NEO Cryptocurrency – A Few Things You Should Know About “Ethereum of China”)
Like Ethereum, it includes support for smart contracts, enabling developers to created decentralized apps (dapps); and can also serve as a platform for Initial Coin Offerings (ICOs). Also, both NEO and Ethereum are open-source and have ample community backing with great, responsive teams.
There are some difference though, some of which we’ll explore in this piece. So without further ado, here are…
7 things that make NEO different from Ethereum
As you are about to see, NEO has a few advantages over Ethereum…
1. NEO has the approval of the Chinese government
Unlike Ethereum — and any other cryptocurrency for that matter — NEO has an approval (if not support) from the Chinese government. Also, it has a backing of a few major corporations, including Alibaba and WINGS; and a partnership in place with Microsoft. For what it matters Microsoft is also supporting Ethereum through the Enterprise Ethereum Alliance (EEA) alongside other corporations and blockchain startups.
2. NEO is more energy efficient, for now
As I’m writing this, NEO relies on a delegated Byzantine Fault Tolerant (dBFT) consensus mechanism, which is an improved form of proof-of-stake. In contrast, Ethereum uses a more energy intensive proof-of-work mechanism, though that may change in the future. For the time being, NEO is more energy friendly.
3. NEO is not divisible
It only exists in whole numbers (1, 2, 5, 10, 50, 100, 1000, etc), whereas the native crypto-fuel of Ethereum can be divided (3.4352, 283.399403, etc). This doesn’t mean a lot but it is a difference so we’ve added it here.
4. App development is easier with NEO
NEO enables developers to create smart contracts and dapps in C# and Java, with plans to include support for Python and Go in the future. This makes it a more developer-friendly platform than Ethereum, which uses a new programming language called Solidity. We are not sure why Ethereum hasn’t opted for some other, better-known programming language and can only hope that will be changed at some point in the future.
5. NEO is still a China-only focused platform
Right now, you can’t find much information in English about NEO. That’s obviously not a problem for the platform makers as they are “only” addressing the population of 1.379 billion. On the other hand, Ethereum is truly international, catering to English-speaking audience as well as those speaking other European languages.
6. NEO is much faster
Right now, NEO can handle 10,000 transactions per second. In sharp contrast, Ethereum tops at 15 transactions per second. Again, improving the speed of transaction is in works for Ethereum, but for the time being – NEO is faster.
7. NEO is quantum computer-proof
Another advantage of NEO is that it can — or at least should be able to — handle quantum computing hacks. Quantum computers are believed to have the ability to break into and hack the cryptographic math on which blockchains are based. NEO makers claim they have already developed an anti-quantum cryptography mechanism called NeoQS, which is something no other cryptocurrency, including Ethereum, has.
NEO has some advantages over Ethereum, but that doesn’t mean it will win in the long run. Nevertheless, we tend to think it will be more widely adopted in China while the rest of the world will be running their dapps in the Ethereum blockchain… but you never know. Which leads us to our final section…
Should you buy into NEO?
We think yes. For the time being, it will continue to coexist alongside Ethereum and many other cryptocurrencies. The fact that it has an approval of the Chinese government and a few major corporations, including those based in the world’s most populous country, helped the cryptocurrency hit the top 10 cryptocurrency list. Chances are it will stay relevant for the foreseeable future and will only grow in the years to come. It is up to you to decide whether you want to buy into NEO or not. For what it matters, we like it a lot, though we can’t provide you with an investment advice…
