Consensus algorithms, which define the scalability and security of blockchain systems, are at the heart of blockchain technology. There are many consensus algorithms, such as Proof-of-Work and Proof-of-Stake, that fuel blockchain networks by allowing them to attain a transactional consensus. dBFT is one such consensus method that helps blockchain networks battle untrustworthy members by constructing a modular and smart economy. It was created by the NEO platform, and the NEO blockchain’s mechanism is entirely based on the dBFT consensus algorithm. NEO blockchain is a Chinese Ethereum replacement.
About NEO Blockchain
NEO is a Chinese community-managed open-source and decentralised blockchain platform. Through smart contracts, NEO powers help to automate and digitise the asset management process. To lay the framework for the next-generation Internet, incorporates various in-house components such as oracles, decentralised storage, and the domain name service.
NEO is one of the first blockchain companies to use a dual token concept. It is also the first blockchain platform to return the entire original cash collected to NEO participants during its maiden token sale, indicating that it had enough revenue to be self-sufficient.
The Architecture of NEO Blockchain
The architecture of NEO is made up of many management models.
The Economic Model
The NEO blockchain contains two distinct native tokens: NEO and GAS. NEO, which has around 100 million tokens, grants authority to function on the network. The NEO network charges for the storage and operation of smart contracts and tokens, benefiting all consensus nodes and limiting resource misuse.
Mechanism of Distribution
The 100 million NEO native tokens are split into two sections. The first half consists of 50 million tokens distributed evenly to all NEO promoters during the campaign. The second half consists of 50 million NEO tokens managed by the NEO Council to aid NEO’s development and deterioration.
Mechanism of Governance
All NEO token holders are network owners and have the ability to run the network by voting on it and utilising GAS tokens for all platform services.
The consensus algorithm of NEO Blockchain
The NEO network is based on the dBFT consensus algorithm. It is a Byzantine Fault-Tolerant consensus approach that enables large-scale blockchain procedures to be carried out using proxy voting. The NEO’s owner can then choose the consensus node for voting. The chosen collection of consensus nodes develops a consensus and produces new blocks with the help of the Byzantine Fault Tolerant procedure. The voting procedure on the NEO platform occurs haphazardly and without a clear timeline.
Main Characteristics of NEO Blockchain
- With dBFT consensus, a single block can be finalised.
- Oracle built-in for safe off-chain data access.
- Interoperability between chains.
- Model with two tokens.
- Blockchain community-run: For the people, for the people.
Founders of NEO Blockchain
Erik Zhang, Da Hongfei
Popular NEO applications
Pupular Use Cases of NEO
- Flamingo Finance DeFi protoco
- NeoBurger dApp
- Humswap NFT & DeFi platform
To know more about tools and features of NEO blockchain, check NEO Review and Rating on Scortik. Scortik is a blockchain protocol review and rating platform that uses a high end verification to review a protocol and do a comparison among the top web3 ecosystem.