Technology

All You Need to Know About NEO 3.0 Upgrade

Pushing Forward the Smart Economy

It has been known since June that NEO development team is working on the network’s 3.0 version, but what will the next development phase bring to the table?

NEO is One of the Biggest Smart Contract Platforms

Since the days when the project was called Ant Shares, NEO was marked as a China’s Ethereum (ETH) for its capability to provide a firm foundation for various project developments through smart contracts.

That capability was used by many startups who have chosen NEO to build their ecosystems upon its network for its popularity, speed, and development features.

One of the most successful projects built on NEO is definitely Ontology (ONT), a public blockchain project and a distributed trust collaboration platform, currently ranked 25th on coinmarketcap.com.

NEO Aims Big

According to NEO development team, the 3.0 version of the code will focus on enabling large-scale enterprises to use NEO network, by offering high scalability, extra security, and efficient economic infrastructure.

In an interview given to neonewstoday.com, CEO of NEO, Erik Zhang said: “The initial design for NEO 3.0 was created to serve large-scale commercial applications, which is why we designed for technical features such as stability and high TPS. It also needs to be able to accommodate a huge amount of business data.”

NEO Will be Divisible

Unlike other cryptocurrencies, it is still impossible to buy or sell a fraction of NEO. Given the fact that the current price of a single unit is $23, that doesn’t present a big problem for the investors, but with the growth of the network, there is a big possibility that NEO will even surpass its former glory of $160 per token, which is well on the way to start presenting issues.

NEO 3.0 will reportedly be developed to enable transactions of fractions of cryptocurrency, as well as fractional transactions of NEO’s “supporting” token, GAS, which is used to pay transaction fees on the network.

The Focus on the Number of Transactions per Second (TPS)

If the blockchain project wants to compete with the existing, traditional systems effectively , it has to offer a better, more efficient technology.

Unfortunately, when payment systems are concerned, the blockchain technology is still unable to come close to the TPS that VISA is offering.

For example, to compare NEO’s 1,000 TPS with Bitcoin’s (BTC) 7-15, or even Ethereum’s (ETH) 20-30, would be a complete waste of time, which is also the case when we would be comparing NEO with VISA’s more than 20,000 TPS.

Therefore, NEO development team has emphasized the scalability aspect and announced that they are aiming to achieve 100,000 TPS until 2020 by:

  • Refactoring of the code and core modules
  • Optimization of the network protocol
  • Implementing the feature manifest and permission system for NeoContract
  • Preparing for dynamic sharding
  • Detaching state persistence and block persistence

(Un)comparable With Ethereum

Even though many investors tend to compare NEO with the biggest smart contract ecosystem in cryptocurrency multiverse, Ethereum, it seems that the underlying philosophy behind the two is very different.

As Erik Zhang explained: “Technically they are quite different. Ethereum doesn’t really have much to do, it has already positioned itself as a decentralized, distributed computer that cannot be stopped, and is a platform for running smart contracts. But our vision for NEO is not quite like it. Functionally they are similar, but the vision is different; we aim to serve the smart economy.”

At the end, there is nothing else left for us to do but be excited about 3.0, because NEO’s Head of Marketing and Community Operations, Caterina Zhang, stated that this NEO platform will provide higher transaction per second, automized stability and make the NEO platform ready for the real enterprise use cases to be deployed on top it.

Related post:

Block Sports Betting Decentralized Exchange Chose NEO Over Ethereum (ETH)

Luka Kapetanic

An ex-restaurant business owner turned cryptocurrency fanatic, with over 12,000 followers on investfeed.com. Miner, Investor, trader and, above everything else - a writer, with coinlive.io, and cryptodigest.com in his jobs portfolio.

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