An Introduction to NEO and Gas
Media frenzy can do wonders to a cryptocurrency’s value. This has been the case for Neo, often labeled as China’s Ethereum.
Neo started out on the scene as Antshares in 2014. Antshares was rebranded to Neo in July 2017 and has since seen a meteoric rise. The nexus where all this occurs is Neo’s Smart Economy. All the magic happens on the blockchain, which is a digital ledger that authenticates assets and transactions.
With Smart Economy, the use of a distributed and decentralized network allows for assets to be digitized, circulated, and traded. Even physical assets can be identified by providing a digital identity, thereby bridging the gap between physical and digital assets and providing a means of identity authentication that is protected by law.
The other important part of the Neo Smart Economy is the use of smart contracts. Smart contracts in theory has been around since the 1990s. A smart contract is a digital contract that is self-governing and self-executed based upon preset parameters.
The NEO ecosystem has two tokens: NEO (NEO) and NeoGas (GAS). NEO can be thought of as holding a stake in a company (in this case, a stake in the blockchain).
GAS is like automotive fuel, and that fuel is used to pay for using the blockchain’s resources such as using smart contracts. Users pay this gas fee to operate on the blockchain.
There will be a total amount of 100 million NEO tokens, the first 50 million tokens is publicly distributed. The other 50 million is used by the NEO Council towards growing the NEO platform and maintenance.
GAS will also be limited to 100 million. The total amount of GAS is initially set at 0 with GAS being generated with each new block creation.