Ethereum – an intro
“Ethereum is a platform that makes it possible for any developer to write and distribute next-generation decentralized applications.” – Vitalik Buterin, Co-Founder, Ethereum.
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference. Ethereum is developed by a worldwide team of passionate developers for the Ethereum Foundation, a Swiss non-profit organization.
Known for its robust smart contracting functionality and flexibility, Ethereum is one of the most mature blockchain platforms available today. It is used widely across multiple industries and has the largest number of use-cases available today. Along with Hyperledger Fabric, Ethereum has developed a large online support community as well and has frequent product updates and enhancements. It is important to realize that Ethereum is essentially permission less (or public) platform that is designed for mass consumption versus restricted access (a typical requirement for privacy requirements in enterprise use-cases). It is also PoW (proof-of-work) based which is not the fastest (resulting in potential latency issues). It might change its consensus algorithm to the fast PoS (proof-of-stake) in future versions. Ethereum’s core innovation, the Ethereum Virtual Machine (EVM) is a Turing complete software that runs on the Ethereum network. It enables anyone to run any program, regardless of the programming language given enough time and memory.
NEO – an intro
NEO is a blockchain platform and cryptocurrency, which is designed to digitize assets using smart contracts, aiming to bring blockchain to the masses. The NEO coin was launched as Antshares by Da Hongfei. In June 2017, Antshares was rebranded as NEO. It supports decentralized commerce, identification, and digitization of various assets. With the digital identity, NEO integrates blockchain technology. It creates ways for physical assets like money or company shares assets to be digitized and exchanged over the NEO network in a peer-to-peer manner. It is ranked 11th in terms of market cap globally as of June 2018.
Ethereum vs NEO
Smart contracts in Ethereum can only be written in a language called Solidity. Smart contracts are the future of blockchains. Ethereum has proved this by rising to the second position in global rankings despite being relatively new.
Ethereum blockchain focuses on running the programming code of any decentralized application.
In Ethereum, miners work to earn Ether, a type of crypto token that fuels the network.
Ether is also used by application developers to pay for transaction fees and services on the Ethereum network.
Ethereum allows developers to create operations that fit the purpose.
Instead of having to build an original blockchain for each new application, Ethereum enables the development of potentially thousands of different applications all on one platform.
ERC20 token standard was defined by the Ethereum Foundation, developers can issue their own versions of this token and raise funds with an initial coin offering (ICO).
Dapps on Ethereum are immutable, corruption and tamper proof, have zero downtime and highly secure.
Ethereum can handle 15 transactions per second
Ethereum and every other cryptocurrency is not quantum computer-proof
The native crypto-fuel of Ethereum is divisible. It can be divided (3.4352, 283.399403, etc.)
It less vulnerable to hackers than Ethereum.
The goal of NEO is to digitalize physical financial assets and to become the leading blockchain project by 2020
NEO aims to build a platform on which other decentralized applications can be built by allowing users to execute smart contracts on their blockchain, thus increasing the spread of the blockchain technology
NEO uses a consensus mechanism called Delegated Byzantine Fault Tolerance (dBFT), which offers lower electricity costs and removes the possibility of a chain split
NEON is the desktop wallet for NEO, and it also supports GAS tokens (used to pay fees)
NEO has its origins in China. With China being a large market, it’s obvious that from an investor perspective one should factor in Chinese support and regulation
At present, NEO can handle 10,000 transactions per second.
NEO is quantum computer-proof. Quantum computers are believed to have the ability to break into and hack the cryptographic math on which blockchains are based. NEO claims that they have already developed an anti-quantum cryptography mechanism called NeoQS
The native crypto-fuel of NEO’s blockchain is not divisible. It only exists in whole numbers (1,2,50,1000, etc.)
Ethereum is well-positioned in the crypto market, especially on the technological aspects. Ethereum is built to be a world computer with Turing complete concept, also Ethereum is more accepted globally. Ethereum, however, has some improvements to be done on faster processing of heavy transactions.
On the other hand, NEO is built to focus on business transactions with more security and fast processing, making NEO offer higher transaction rate and suitable for ASIA PACIFIC region, but has lesser acceptance globally. NEO is eager to position themselves to be in direct competition with Ethereum and have a long mile to go in the mainstream adoption.