On 10 July 2018, the NEO development team released a blog post outlining changes and upgrades planned for the blockchain. Having launched their testnet, the long awaited project is set to be implemented in 2020. We’ll be taking a look at everything you need to know about NEO 3.0 ahead of its launch date.
What’s the problem with the current NEO network?
NEO is an open network, that aims to achieve a “smart economy” by utilizing blockchain and smart contracts to manage digital assets. NEO 3.0 aims to fix the problems in the current NEO system. Over the last few years, NEO has tried to compete with Ethereum, and initially showed itself to be one of the leading blockchains in the industry.
A few years on, and NEO has been displaced by other, newer blockchains with arguably better protocols. The biggest issue with the current NEO network is that it only has seven verification nodes, which means that consensus can easily come under attack.
What does NEO 3.0 entail?
Now, let’s take a look at everything you need to know about NEO 3.0.
John deVadoss, NEO’s head of development on NEO 3.0, describes the proposed upgrade as, “a comprehensive stack, a platform that goes well beyond the chain.” NEO 3.0 and the NEO Virtual Machine will provide built-in features that meet the chief operational needs. The NEO and GAS tokens are staying, as well as the Policy Contract. This will handle the consensus algorithm, as well as the state of the blockchain.
NEO 3.0 will use the Delegated Byzantine Fault Tolerance as a method to verify blocks. Some nodes will be elected through a democratic voting process, who will approve new blocks. Once blocks are verified and distributed through the ecosystem, the transactions cannot be changed.
NEO 3.0 will begin as a snapshot and a new Genesis block. Consensus will still be reached among a relatively small number of nodes, but that works for NEO who are trying to brand themselves as an enterprise blockchain (i.e. ideal for businesses).
NEO is currently ranked at #18 on CoinMarketCap, with a market cap of $798,749,212. With NEO 3.0 set for release, it’s likely that the cryptocurrency will see a major boost in the markets. Want to avoid falling behind? If you’re not totally convinced in crypto day trading, consider CFD trading NEO. On a platform like eToro you can earn ROI regardless of whether the price rises or falls (as long as you speculate correctly).
$NEO co-founders Da Hongfei (@dahongfei) and Erik Zhang (@neoerikzhang) recently participated in a Reddit ask me anything, with questions around Neo3, developer attraction and retainment, decentralized finance (DeFi), and stablecoins. https://t.co/hOUiQi0CZP
— NEO News (@NEOnewstoday) October 27, 2019
NEO takes a different path
Originally lauded as a viable competitor to Ethereum, NEO is making its own way in the crypto asset world. With NEO 3.0 set to launch in 2020, the platform has already launched its testnet and are working towards a very exciting future. So, now that we’ve had a look at everything you need to know about NEO 3.0, it’s pretty clear there are big changes happening in the network – and definitely for the better.
Hitesh Malviya is the Founder of ItsBlockchain. He is one of the most early adopters of blockchain & cryptocurrency enthusiast in India. After being into space for a few years, he started IBC in 2016 to help other early adopters learn about the technology.
Before IBC, Hitesh has founded 4 companies in the cyber security & IT space.
Subscribe to get notified on latest posts.