A Look At Comparing The Differences Between Blockchains Ethereum And NEO
Ethereum had been the poster child for smart contracts but recently, NEO has been trying to dethrone it. Before we look at the differences between these two blockchains, let us look at how they are similar.
NEO and Ethereum are both blockchain projects specifically designed to host smart contracts, ICOs, and DApps in a decentralized manner. Their respective blockchains are fueled by crypto-assets; GAS in NEO, Ether in Ethereum. Both the projects are open-source, Turing complete, and have ample community backing with great, responsive teams.
NEO incorporates some of the most advanced concepts in modern cryptography and blockchain technology. This has allowed them to provide numerous benefits and solve a number of problems that are associated with traditional ecosystems. The NEO development team are also really active and have become more engaged with the community. They are also promoting the coin in a number of other jurisdictions.
Difference In Protocol
Ethereum uses the same protocol as Bitcoin — Proof of Work (PoW). With Proof of Work, computers on the network compete to solve mathematical formulas and win the right to confirm transactions into the blockchain, and thus, secure the network. NEO uses a protocol called dBFT (Delegated Byzantine Fault Tolerance) sounds like a term you’d see on your AP History Test. The simplest explanation of Byzantine Fault Tolerance is the issue with how to get everyone on the network, to be honest, and work together — because one bad apple could ruin everything.
Theoreticaltransaction speeds are the absolute maximum speed mathematically possible for the network. For NEO, this number is 10,000tps (transactions/second). Ethereum can do 30tps. In reality, NEO can do 1,000tps in comparison to Ethereum’s 15tps.
Forks happen because there is no finality in the consensus mechanism of Ethereum. Multiple chains in the blockchain can be created at once — ultimately, both are valid chains and can continue to be mined on. NEO has finality. This is because the bookkeepers must reach a 66% consensus for the transaction to be placed into the blockchain.
If Ethereum is Goliath, NEO is David. Ethereum did it first. It was revolutionary and exciting and took the crypto world by storm. Web 3.0. Today almost every ICO is built on Ethereum’s ERC20 token platform. Yet if we’ve learned anything from the fact that Alibaba is closing in on Amazon’s market cap and WeChat dominates China’s social media scene, it’s that China plays by their own rules. The sole reason NEO rose to such prominence last year was that in addition to being a promising project, NEO was set to dominate the Chinese market.