NEO DevCon Event Previews NEO Blockchain 3.0, And Advocates For Microsoft’s .NET Framework Developers
Amidst the bearish Bitcoin trends and the naysayers, one cryptocurrency named after a movie by the Wachowskis, seems to be impervious to market trends… and is currently hiring.
NEO as it defies the odds just announced the opening of its office in Washington DC. NEO is to be headed by the former engineering director of the .NET framework by Microsoft John deVadoss.
A sneak peek of a technically improved version of the platform was shown at the event, termed as “NEO 3.0”.
NEOS Unique Design
NEO is designed as a decentralized apps (dapps) ecosystem, supported by its own cryptocurrency NEO.
The NEO is backed by its non-profit foundation that funds its development, which provides tools to be used in the development of dapps, and other services like token development, exchanges, and games.
NEO possesses a unique transaction validation system called “Delegated Byzantine Fault Tolerance” (dBFT), which confers the rights of transaction validation to smaller delegated groups. This is very much unlike BItcoins’ Proof of Work (PoW) transaction system. This model, however, is similar to the delegated proof of Stake (dPoS) used by TRON and EOS.
In comparison, the 10,000 and 9,000 nodes in use by Bitcoin and Ethereum to secure their blockchains respectively, only seven machines are conferred with this responsibility with NEO.
5 of these validating nodes are managed by the NEO foundation, while one each are managed by the Telecoms company KPN, and the City of Zion (CoZ) community.
The advantages of a small number of delegates include but are not limited to the ease of monitoring, and consensus reaching.
Unfortunately, this system discards the Ethereum and Bitcoin’s “probabilistic finality”, for an “absolute finality”.
Another unique attribute of the dBFT system is the ability of parties to vote for 3rd party transaction verification depending on available account balances.
Regardless of the small scale democratic voting process, most verifications are really ultimately determined by the NEO foundation, as they possess a 66% voting power. The foundation also independently appointed CoZ and KPN.
Aspirations Of The NEO 3.0
Members of NEO’s top management were asked about their plans for NEO and their philosophy on decentralization by Hard Fork.
John deVadoss reacted saying that NEO is positioning itself in anticipation of serious business.
Its founders’ statement on decentralization went thus,
“Unlike probably some of the blockchain platforms, NEO has always had this anchor of the smart economy – digitizing assets, a focus on identity, a focus on obvious scenarios like STOs [security token offerings] and so on,”
De Vadoss further explained that,
“I think it would be very easy for [Hongfei] to decide to say, ‘you know what, open the gates [for more validating nodes],'” he said. “Speaking for myself, I would say at this point in the evolution, of the maturity of blockchain platforms, I think it would be premature to rely on ‘how many nodes,’ or ‘how many ‘this’ and ‘that.’ I would focus more on the underpinnings of the blockchain.”
He went on to say that,
“For example, you look at PoW. I think that this notion of probabilistic finality might make sense for Bitcoin. But once you go into the world of dapps, probabilistic finality – it cannot work,”
deVadoss said to Hard Fork.
“And so you look at Proof-of-Stake (PoS), this notion of economic finality also has significant challenges, right? I mean, you have to have absolute finality.”
DeVadoss claims that this relatively centralized network gives NEO its uniqueness, and some of its other competitors including Ethereum have attempted in futility to modify their consensus systems.
“So, you look at, for example, Ethereum. They have to now go from PoW to PoS – they’ve had some hiccups along the way,”
NEOS Partnerships Aspirations
NEO is apparently working at developing strong partnerships in the industry.
The obvious Microsoft affiliations are certainly no mistake, which includes the use of their .NET programming language to write NEO dapps.
“We want to be seen as a serious platform – trustworthy, developer-friendly and ready. There are things we can learn from the way Microsoft have done with .NET, and obviously Amazon Web Services,”
added deVadoss. In that line of thought deVadoss added that,
“That’s kind of the identity that we want to establish for NEO and the NEO community, which I think means that we have to be a little more measured in terms of how we how we venture.”
DeVadoss also said that NEO is certainly in no hurry to let go of its consensus system.
NEO 3.0 Incentives
NEO’s founder Hongfei stated that NEO 3.0 is focused on technical developments in its dapps ecosystem, as opposed to attempting increasing nodes.
“I would say that the seven consensus nodes reflects the will of all the NEO token holders,”
“But, with 3.0, we are exploring new or better governance models. We need to incentivize NEO token holders to take part in the election (or delegation) process.”
As the founder was pressed on for more details on incentives, he then added that various proposals were still under deliberation.
Hongfei explained that,
“In the past, we took the process of ‘code first,’ so there’s no specification. We discuss, we have some idea, we write a white paper and then directly go to coding. But in the future [for 3.0], we will do ‘specification first,’ so it’s more like a formal protocol for building a new foundation.”
Neos Capital Base
We can't but accept that NEOs strategy looks like its working, with $7 million in Bitcoin and Ethereum, $2 million in fiat currency, and possessing at least 40% of all its tokens (which was marketed as a sign of their financial stability).
The NEO tokens at a total number of a $100 million are currently valued at $9 each. NEO Global Capital (NGC), is a for-profit blockchain investment firm also funds NEO.
The founder commented on this saying,
“The only revenue we have is from NGC. The investment performance is quite good compared to other cryptocurrency funds.”
When Hongfei was asked about the downsizing trends among blockchain companies as a result of the current bearish markets, Hongfei retorted,
“Oh, no, we’re recruiting. We actually have new offices. The number of employees at NEO Global Digital grows linearly, very steadily, from four to today’s 45.”
Hongfei also stated that he didn't want to employ large numbers of developers even during a bullish season, only to downsize in the bearish markets.
He advised new developers on its platform to work directly on its technology, as opposed to adding more dapps to the network. NEO also aims at drawing in developers to issue tokens thereby adding value to the network.
He added that most new dapps added unto the network would tend to have short lifespans as a result of lack of adoption, rather developers should invest more time into developing into improving the infrastructure.
NEO believes strongly on the blockchain design attracting its own developers, and its ideal developers would gladly trade decentralization of nodes for coding freedom and flexibility. This unique design has conclusively created a trustworthy circle of unique developers.