Ethereum vs NEO – Which blockchain will provide better long-term value

[PRIBO247]

Ethereum (ETH) and NEO are two major cryptocurrency
platforms that allow developers to build and deploy
automated business logic via smart contracts and
enterprise-level decentralized applications (dApps).
Both these platforms have been implemented using
blockchain technology and can be used to launch
initial coin offerings (ICOs).

In this introductory article, we will go over briefly when
and by whom both the Ethereum and NEO projects were
launched; the type of network consensus mechanism
and tokens each of them use; the different types of
smart contract development environments they provide;
and other details regarding their network management.
In future posts on this topic, readers can expect to
learn more about how both NEO and Ethereum plan to
scale their networks and the business and regulatory
activities associated with both projects.

How They Both Started
Proposed in late 2013 by Russian-Canadian
programmer and writer, Vitalik Buterin, Ethereum is an
open-source, public blockchain network – which
provides a decentralized virtual machine (EVM) that is
used to execute scripts on its network of public nodes.
Meanwhile, the NEO project was initially launched by
Shanghai University graduate and developer Erik Zhang
and self-taught computer programmer, Da Hongfei as
AntShares in 2014, before rebranding in June 2017 to
its current name. NEO, like Ethereum, is also open-
source and computationally universal – or in other
words, Turing Complete .

NEO And Ethereum Are Informally Turing
Complete
What this means is that both NEO’s and Ethereum’s
instruction sets are expressive enough to be
considered in the same category as higher-level
programming languages (such as C, C#, Java).
Ethereum developers are able to program smart
contracts using Solidity (a language that is somewhat
similar to C and JavaScript), LLL (a functional
programming language similar to LISP), and two
deprecated languages: Serpent (similar to Python) and
Mutan (based on the Go language designed by
Google’s engineers).

NEO, on the other hand, supports more commonly used
languages including Java, Go, C#, Python, and
Javascript. The NEO blockchain network uses a special
version of Docker (a software program that creates a
virtual instance of an operating system) called NeoVM
that compiles computer code – which then runs in a
secure executable environment.

Blockchain Consensus Mechanisms, DAO Attack,
Immutability
NEO uses the delegated Byzantine Fault Tolerant
(dBFT) consensus mechanism – which its developers
claim is an improved version of proof-of-stake (PoS).
At present, Ethereum is using the proof-of-work (PoW)
consensus algorithm, however, the platform’s
#DevelopmentTeam  plans to eventually shift to PoS – as
part of the ongoing scaling efforts for the Ethereum
network

Proponents of the dBFT algorithm argue that it’s a
superior consensus protocol because it is “hard fork
proof.” Moreover, dBFT’s advocates claim that it
provides better finality (of transactions), which means
that once a set of transfers have been confirmed, their
associated block cannot be split. Therefore, all
transactions processed on NEO’s network cannot be
rolled back.

Currently, the Ethereum network is arguably more
prone to hard forks, with one occurring after the DAO
attack . The DAO, which stands for Distributed
Autonomous Organization (DAO), was created in 2016
by Ethereum’s developers and it was meant to be a
decentralized venture capital fund for crypto-related
projects. During the DAO’s creation period, it raised an
unexpected 12.7 million Ether, an amount worth $250
million at that time. In June 2016, a hacker discovered
a vulnerability in the DAO’s codebase, which allowed
him to steal about 3.6 million ETH (approximately $70
million) from the DAO account.

Because of this incident, the Ethereum community was
split into two groups: one wanting to hard fork the
original Ethereum chain, which has now resulted in
what we refer to as Ethereum (ETH), and the other
network is called Ethereum Classic (ETC ). The ETC
chain exists today because certain members of the
Ethereum community are seemingly more firm in their
belief of the principle that blockchains must be
immutable. This, they claim, is why they chose to stick
to the same version of the Ethereum chain even after
its state was said to be corrupted by the DAO attack.
Transaction Processing With Native Tokens
Transactions on the NEO network can be conducted by
using two different tokens: NEO and GAS. The
maximum circulating supply of these tokens has been
fixed at 100 million each. Owning indivisible NEO
tokens is equivalent to what may be considered shares
in traditional markets, and their holders are entitled to
voting rights.

So, those who have a stake in NEO may vote on key
decisions regarding the platform’s ongoing
development. The blockchain-based crypto network’s
other token, GAS, is distributed as a type of reward (or
dividends) to NEO investors.
Ethereum’s divisible (up to 18 decimal places) native
token, Ether (ETH), is used to conduct transactions on
its blockchain-based network. When the Ethereum
mainnet went live in late July 2015, 72 million Ether
tokens had been “premined” – which accounts for
roughly 70% of total ETH in circulation, as over 28
million ETH have been created since the platform’s
launch. The relatively large number of ETH that has
been issued has raised some concerns about whether
the token will be sufficiently scarce to preserve long-
term value.

Notably, the term or word “Gas” is also used on the
Ethereum network – but refers to an entirely different
process (compared to NEO). Gas on Ethereum serves
as an internal transaction pricing mechanism, which is
used to help reduce spam on the blockchain and also
to allocate resources to the network’s nodes.
NEO’S Emphasis On Regulatory Compliance
One of the main things that sets NEO apart from many
other blockchain networks is that it focuses on
complying with regulations . Although both Ethereum
and NEO allow users to issue digital assets, the latter
requires its network participants (individuals or
organizations) to verify their identities. After NEO
network users have been verified, they are assigned a
unique digital identity.

In order for parties to conduct transactions on NEO’s
network, their identities must first be properly verified.
Moreover, nodes looking to validate transactions, or
engage in other activities such as bookkeeping or
accounting on NEO’s blockchain must also pass an
identity check.

Source : https://cryptoinsider.com/ethereum-