Despite the ban on the cryptocurrency industry in China, NEO has managed to rise from adversity. This is mainly because the Chinese government does not ban the growth of blockchain companies as people are still permitted to keep cryptocurrencies. The only area where the ban applies is on the trading of cryptocurrencies and the creation of ICO. Since its inception, NEO’s technology was created to be regulation-friendly, and it has a centralized approach. This is very different from other cryptocurrencies that are trying to run away from regulations.
In this article, we will go into detail about the relationship between NEO and Onchain and how they plan to distinguish themselves from the other cryptocurrencies. Also, we will explore the plans of this cryptocurrency in addressing the rumors that they have yet to receive acceptance from the Chinese government.
So, what is NEO?
NEO was first founded in 2014 under the name AntShares. It wasn’t until 2017 that they rebranded into NEO. Similar to Bitcoin, NEO utilizes blockchain to support its operations. In addition to this, the blockchain also utilizes smart contracts. NEO aims to automate the management of digital assets through smart contracts. The main goal of NEO is to create a smart economy system.
How does NEO work?
Using NEO’s blockchain, assets can be digitized openly and transparently. The best thing about the blockchain is that it is free of any intermediaries or any associated costs. Users of this platform can trade any assets. Therefore, you can link any of your possessions on the platform, which will be matched with its equivalent digital avatar on the network. An additional feature of this blockchain is the protection of assets. All registered assets will be validated by a digital identity. From here, it is easy for people to identify the owner of a digital asset.
On top of that, the use of smart contracts enables individuals and the blockchain to execute transactions without the need of a central figure. These contracts will simply be executed by using the programming code on the network. Developers around the world can easily contribute to the NEO platform because it enables programming in mainstream languages including C#, Java, Go, Python, and Kotlin. More importantly, encouraging a community of supporters is essential to sustain the cryptocurrency.
Staying on the good side of the government
There is a good reason why NEO has managed to stay on the good side of the Chinese government. For instance, NEO is highly regulatory compliant. One may think that NEO’s structure is very similar to Ethereum because it also utilizes a smart contract, but it has additional features called the digital identity. This is what makes the platform highly sustainable in the Chinese environment. Using this concept, everyone will operate on the NEO platform by having a unique digital identity. Hence, the government can rest assured that any money laundering or illegal act can easily be tracked on the platform.
In 2014, NEO created Onchain as an independent technology company that will provide the necessary financial and legal frameworks to provide blockchain solutions. This firm will focus on the creation of private blockchain that can meet the tailored needs of enterprises.
Therefore, this business unit was created as a result of increasing demand from enterprises that want it to create their private blockchain solution. The creation of a customized blockchain can help to address a different type of problems both in the private and public sectors.
Are NEO and Onchain related?
NEO and Onchain do not share the same identity. In fact, they operate independently and do not have a stake in one another. There is also a difference in which target markets they are looking into. For instance, NEO targets the business to consumer segment. Meanwhile, Onchain focuses on the business to business enterprise services. The source of funding is also separate for both.
NEO is funded through the public community. Meanwhile, Onchain is funded by China’s largest private conglomerate, Fosun. The reason that Fosun was selected as a partner is that they have three major arms which include finance, medical science, and entertainment and lifestyle. All of these are key to working with blockchain technology. Therefore, the resources that they provide are necessary to maximize the potential of the blockchain.
Will cryptocurrency have a place in China?
Despite China’s ban on cryptocurrency, there is a possibility that the blockchain technology will have increased acceptance within the Chinese community. In fact, the Chinese government is reportedly trying to figure out how they can release their centralized cryptocurrencies. NEO is making the right moves by creating the digital identity feature that will ensure it is on the good side of the government. Meanwhile, Onchain’s technology seems to have the potential to be incorporated even in the Chinese government to create an all-inclusive solution for business. Therefore, their business offering is appealing, not just to the Chinese government, but also to foreign governments.