NEO Launches its Inaugural Independent Consensus Node
Following the resent appointement of a new consensus node, NEO has regained its spot as one the elite cryptocurrencies as per market capitalization. Precisely, the digital currency is among the ten top-ranked cryptos in the market. Since the beginning of the project, the entirety of NEO’s nodes were being run exclusively by the development team.
However, NEO recently tweeted that it was ushering in the era of decentralization. The development, which coincided with the July 4th holiday, spurred a rapid increase in the trading volume of NEO. In less than a days, investors purchased over $400 million worth of NEO. As a result, the cryptocurrency shot up the rankings and is now the 10th most significant digital coin by market capitalization.
The new consensus node will be operated by the City of Zion. Fundamentally, this is a group of autonomous open-source NEO developers. The group has been running a candidate node on the NEO Testnet since the beginning of this year. Similar to established blockchains such as Ethereum, NEO will feature a webpage that tracks the distributed ledger’s status. Some of the aspects to be tacked include block time, block height, active consensus, and candidate nodes.
Previously, NEO has come under substantial criticism for centralizing the operation of nodes. Therefore, the news came as a reprieve to the critics, most of whom laude the move by NEO to decentralize the control over nodes. Nevertheless, the NEO team views the addition of nodes as an essential development. According to the project’s CEO, they have to exercise caution regarding the decentralization process, mainly because the NEO blockchain is still in its developmental stages. He further added that the transition will be conducted gradually because they need assurance that the new nodes will adjust promptly during upgrades and other tweaks to the blockchain.
Notably, most of the consensus nodes at the City of Zion will retain their centralized status. Nonetheless, NEO has publicized the stages through which the decentralization will be implemented. Furthermore, the project has already identified several third-party firms which will operate the independent nodes.
These include the Dutch Telco KPN, Chinese blockchain company Fenbushi Capital and so on. Coincidentally, these two firms have been running nodes of the NEO Testnet over the past three months. As per the transition timeline towards decentralization, the extra nodes will integrated into the blockchain’s mainnet before the year ends.