NEO vs Ethereum
A Complete Comparison with All Pros/Cons for NEO vs Ethereum. Let’s Get Started!
NEO versus Ethereum? Which of the cryptocurrencies is a better investment? How are they different from each other? Which is expected to grow faster? It’s not easy to understand the difference and choose between Ethereum and NEO.
Which one should you buy? The battle between NEO vs. Ethereum is ruthless one as competition between them is high. If you’re considering investing in either Neo or Ethereum, you first want to read this guide.
The NEO vs. Ethereum comparison is a hot topic producing more heat than light. There is little information about NEO as most experts fail to give an unbiased review of both digital coins. Most crypto investors intent on diversifying their portfolios choose to hold both NEO and Ethereum. However, if you plan to pick one over the other, this guide will help you understand the fundamental differences and similarities between both blockchains. Getting a better understanding will help you make an educated decision on NEO versus Ethereum.
In this complete comparison guide, we purpose to answer all your questions. Our guide will address essential factors including the origins of the two cryptocurrencies, the features and significant differences and similarities between Ethereum and NEO. This guide will consider the pros and cons of each coin besides addressing the frequently asked questions.
Since we were hoping you will make an informed decision on NEO vs. Ethereum, we start with the story about Ethereum and its investment potential.
Here we go!
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The Story Behind Ethereum (ETH)
Ethereum is a public, open-source, decentralized blockchain and computing platform that features complete smart contract functionality. The concept was proposed in 2013 by Vitalik Buterin, then aged 19 years old as a platform that could potentially leverage blockchains to store computer programs and execute an international network of distributed nodes.
Ethereum (ETH) is one of the most established cryptocurrencies coming only second to Bitcoin. The primary development started in Early 2014 led by Vitalik and a team that included Charles Hoskinson, Anthony Di Iorio, and Mihai Alisie. The product development was executed through a Swiss-based company Ethereum Switzerland GmbH and afterward via the Ethereum Foundation.
How Ethereum Works
The Ethereum network runs via the Ethereum Virtual Machine (EVM) and executes scripts across a network of distributed computers. This enables the execution and storage of Decentralized Autonomous Organizations (DAOs); smart contracts etc. through its functionality Developers can build decentralized applications (Dapps) that can include organizations, distributed registries, games, and many others.
The structure of the Ethereum blockchain resembles the Bitcoin blockchain. The main similarity, though, is that it shares the entire transaction history with the network storing a copy of all transaction histories. The system also saves the recent state of all smart contracts. As soon as a transaction takes place, the system divides the total amount similar to what happens with paper money. Ether (ETH) tokens appear in the users’ wallets and can be transferred to other accounts just like money in a regular account.
Pros & Cons with Ethereum
Benefits of Ethereum
The benefits of Ethereum (ETH) as a blockchain-based platform and in comparison to other blockchain eco-systems include:
- Immutability: Third parties cannot alter data on the blockchain.
- Tamper-proof: Interfering in any way with the Proof-of-Work (PoW) consensus of the decentralized network is impractical.
- Secure: Combine the PoW consensus and the blockchain’s cryptographic techniques, and you have an impermeable system that’s safe from hacking and manipulation.
- No Downtime: All organizations, smart contracts, and applications running on the Ethereum blockchain are always operational and can’t be turned off.
Pros of Ethereum
You cannot address NEO vs. Ethereum without mentioning Ethereum’s extensive reliability and acceptability. Ethereum’s prowess stems from several merits the network features some of which include the following:
1. A Visible and Competent Leadership
Ethereum founder Vitalik Buterin gets mentioned frequently in crypto-related headlines defining the blockchain’s vision continually. Buterin’s consistent active participation has given the network a great deal of credibility and reputation.
2. Ethereum’s Potent Functionality
By supporting elements like Dapps and DAOs Ethereum becomes the go-to blockchain. The blockchain has also created a niche for itself in the world of Initial Coin Offerings (ICOSs) via ERC-20 tokens. The tokenization and functionalities in diverse fields like prediction and gaming make Ethereum great.
3. Great Backing by Big Names
Recognized venture capitalists (VCs) have repeatedly supported the Ethereum blockchain. The leading VCs include Andreessen Horowitz, Union Square Ventures and the founder of Coinbase Crypto Exchange.
Cons of Ethereum
Similarly, our NEO vs. Ethereum debate takes cognizance of issues that ETH is facing that make up for the cons of Ethereum. Some of them might include:
1. Over-Reliance on Buterin’s Reputation
There’s no doubt that Buterin cuts a larger than life reputation in cryptosphere. The slightest negative news about him, such as death could affect Ethereum’s market position. Four billion dollars’ worth of ETH was once sold off following a hoax regarding Buterin’s death.
2. Delay in Joining Proof of Stake (PoS) Protocol
Ethereum has hesitated to shift to the Proof-of-stake (PoS) Consensus protocol for a while now while the community waits. The delay has somehow affected the network’s reputation.
3. Emergent Competition
New competitors are entering the markets that are taking lessons from Ethereum’s flaws and weaknesses. The best example of new crypto products is NEO, which is christened the Ethereum Killer which we are going to consider next in this NEO vs. Ethereum guide.
The Story Behind NEO
If you are a keen follower of NEO vs. Ethereum battles, you must have heard that NEO, dubbed the Ethereum Killer, has been considered the Chinese Ethereum. You won’t find more patriotic people than the Chinese; they will restrict themselves from using foreign products and services. The Chinese have their version of Amazon, WhatsApp, Facebook and their version of Ethereum which they use extensively.
NEO cryptocurrency was initially known as Antshares and is a decentralized open-sourced blockchain network that has its origin in China. Even though the blockchain has another token called GAS, NEO is the better-known coin that can be molded for different uses cases. NEO called itself “a distributed network for the smart economy” and is expected to play a role in creating a digitally smart economy.
How NEO Works
One of the reasons NEO is referred to as the Ethereum Killer is that it has “smarter” smart contracts. Unlike Ethereum smart contracts that one needs specialized knowledge to create, programming NEO smart contracts work with existing programming languages making it easier to execute “outside the box.”
NEO operates a Proof-of-Stake (PoS) system, a mechanism that has been on the cards for a while now for the Ethereum network. Since NEO has been designed with in-built PoS, it becomes potentially cheaper and faster than Ethereum. NEO’s design and focused use case lets users verify the specific assets they use on the NEO blockchain.
Pros & Cons with NEO
Benefits of NEO
The main selling points of NEO include the following:
1. Smart Economy
NEO’s smart economy differs from what other cryptocurrencies offer and includes smart contracts, digital identities, and digital assets among others. NEO’s smart economy has the potential to digitize physical assets on the blockchain with benefits including trust, transparency, traceability, and decentralization.
2. Digital Identity
Digital identity is a system of registering organizations, individuals and other entities via a system called Public Key Infrastructure (PKI).
3. Smart Contracts
Creating smart contracts on the NEO blockchain is not as difficult as it is on the Ethereum blockchain and one doesn’t need to learn a new programming language. This is made possible via the Universal Lightweight Virtual Machine.
GAS, also known as NEO’s asset pairing, is a significant advantage on this platform. GAS is a form of a dividend that is paid to users holding the NEO token. As long as you have NEO, you receive gas daily.
Pros of NEO
- Energy-efficient Mechanism – NEO uses a dynamic consensus protocol dubbed the Delegated Byzantine Fault Tolerance (dBFT) which is considered an improvement of Ethereum’s proof-of-work contract. dBFT is more energy efficient than the older consensus mechanisms giving NEO an edge.
- Speed – The NEO blockchain is pretty fast and can process at least 10,000 transactions per second. The high speed gives it high efficiency thereby boosting adoption.
- Government and Investor Backing – While the Chinese government seems averse to crypto in general, it has shown support for the NEO platform; this government support and backing guarantees the longevity of the platform.
Cons of NEO
Not popular in the west
Because of its Chinese roots, NEO becomes somewhat difficult for English speaking users to relate with. This can pose some few problems, especially when you consider the extent of crypto adoption in the west.
NEO is taking Ethereum, its main competitor head on. Ethereum has a large user-base and good reputation. NEO has faced a mighty competitor like Ethereum that has a loyal user base with an established reputation. Since new competitors are coming up every other time, NEO must Struggle to survive.
Is Ethereum / NEO a Good Investment?
Is Ethereum a Good Investment?
The Ethereum price erosion is something to consider when thinking NEO vs. Ethereum as this has astounded the crypto community as well. Initial Coin Offerings (ICOs) seem to have lost their shine, and the question in every mind is whether Ethereum’s price will rise again. The entry of fake crypto projects, a low rate of ICOs and tighter regulations have caused a decline in ETH’s value. If you are interested in a stable cryptocurrency as an investment, you want to consider Ethereum. The cryptocurrency has shown signs of growth shortly.
Should you Buy Ethereum?
You may have heard much regarding the NEO vs. Ethereum debate, and you are wondering whether all the price predictions you have listened to are trustworthy. The cryptocurrency market is highly speculative, and things can change instantaneously. Ethereum has earned itself a strong position in crypto space because of significant partnerships and use cases. You want to clearly understand and appreciate the tokens risks before making a larger investment.
Should you Invest in NEO?
NEO’s total token supply is fixed at 100 million and, as a result, the coin’s value is likely to become bullish. The process of releasing the cryptocurrency is embedded in a smart contract that issues 15 million coins annually. The consistent release of NEO coins is one of the factors that lend the token its stability. What’s more, the platform controls scalability and latency with 10,000 transactions per second. NEO’s only undoing is the fact that it originates in China, a country that has somehow restricted cryptocurrencies.
These are clear advantages that make it easier to defend an investment in NEO. But should you invest in NEO? That question is much harder to answer. Let’s discuss NEO vs Ethereum as investments below →
Ethereum vs. NEO: Which Is Better?
Experts believe that the NEO vs. Ethereum battle is a royal battle because of the way the coins are similar. This Ethereum vs. NEO guide has examined the subject, but you may still not be sure what to choose between Ethereum (ETH) and the Ethereum of China (NEO).
Both Ethereum and NEO are open-source blockchains that can execute Dapps and smart contracts and they have both managed to gain massive corporate support. NEO has been able to win the support of big Chinese players like Alibaba and Red Pulse. NEO also managed to patch up some holes the made Ether contracts vulnerable to hackers.
Investor confidence in NEO’s technology is growing, and whether or not it will eventually steal Ethereum’s crown, NEO has what it takes to hold its crown in crypto space. No one can tell whether NEO will ultimately win the NEO vs. Ethereum battle-royale and, as such, you want to do enough research before making a decision.
Overall, for the investor, you want to remember that even though cryptocurrency restrictions placed on the Ethereum of the East in Asian countries can hinder the growth of the network, NEO has shown potential to catch up with Ethereum. As for what to choose in Ethereum vs. NEO, you must make that decision yourself as an investor.
Which Should You Buy?
There is no straight answer to that question. You need to make that decision yourself. We hope this was enough information to compare these cryptocurrencies. If nothing else, you can buy both NEO and Ethereum to build a diversified long-term portfolio. They can complement each other well because they are popular in different regions.
Which one will you buy? Let us know in the comments! Below you will find the best exchange for buying both Ethereum and NEO →
Frequently Asked Questions
Is your question not answered here? Ask your question below!
Ethereum (ETH) has passed 100 million coins mined. In other words, there are over 100 million Ether in circulation. Unlike Bitcoin, which has a limited supply of 21 million, Ethereum has no predetermined supply.
NEO blockchain is the platform that enables the development of smart contracts and digital assets. The platform uses two tokens namely NEO and GAS.
No, transferring NEO to another user is free, only a few exchanges such as Bittrex charge a fee.
Do you want to buy NEO instantly with your debit/credit card? In that case, use the cryptocurrency exchange we recommend above. It’s the fastest and easiest way to buy NEO →
Do you want to buy Ethereum instantly with your debit/credit card? In that case, use the cryptocurrency exchange we recommend above. It’s the fastest and easiest way to buy Ethereum →