How are NEO smart contracts different from Ethereum Smart Contracts?
What is NEO?
NEO, formerly known as AntShares is defined as an Open Source Blockchain Development Company Decentralized Application Platform . Founded in 2014 by Da HongFei and Erik Zhang, it was originally developed to create a Blockchain application platform. Also in order to create a smart contract system to issue and manage digitized assets called Neo Contract. His project vision is based on establishing a smart economy through the implementation of smart contracts based on Blockchain technology.
ETHEREUM
Ethereum created one of the most exciting technologies in the blockchain industry: smart contracts. This has helped the network gain wide adoption. Ethereum is now the most popular platform on the planet for creating and executing smart contracts. Smart contracts refer to code that helps support complex tasks like exchanging goods, money, or other similar assets. It also works in the development of Decentralized Autonomous Organizations (DAO) .They follow a predefined program without any interference by fraud or third parties.
How does NEO work?
The NEO network works with a decentralized proof-of-stake algorithm between several centrally approved nodes, called Delegated Byzantine Fault Tolerant. It is known to be a Byzantine fault-tolerant consensus mechanism . In Smart Contract Migration NEO, almost 2 million blocks are created annually. That is, on average, one block every 15 to 20 seconds . Currently this network chain is capable of processing 1000 transactions per second, a good number for an open and decentralized network.
MAIN DIFFERENCES BETWEEN NEO AND ETHEREUM
They make use of different algorithms.
NEO uses Delegated Byzantine Fault Tolerance (also known as DBFT) which is an improved form of the PoS consensus mechanism unlike Ethereum which uses a more power-heavy and expensive Proof-of-Work (PoW) mechanism. Recently, Ethereum has made progress in adopting a proof-of-stake algorithm that will increase its speed and energy efficiency, but it still does not compare to NEO.
Support for
Another difference between these two is their backing. NEO is backed by the Chinese government which has led to its high popularity and acceptance in China and consequently gives NEO the edge to capitalize on the huge Chinese market. It is only supported by the EEE-Enterprise Ethereum Alliance, which helps popularize its successes on global platforms.
Functional and technical difference
NEO cannot undergo a hard fork, while Ethereum has already split into two: Ethereum and Ethereum Classic . Functionally, NEO is superior to Ethereum.
language
NEO smart contracts and DApps can be written in multiple programming languages including Java, C# etc.
Divisibility
NEO only exists in integers and cannot be split on decimals, in contrast to Ethereum which uses crypto-fuel, and can be split on decimals.
Speed
NEO is considerably faster compared to Ethereum. It can handle around 10,000 transactions per second, much more compared to Ethereum’s 15. This major drawback for Ethereum has led to a long-term scalability plan that can solve the problem.
Powering the blockchain
While NEO produces Neo GAS for use as crypto-fuel, Ethereum powers its network through small units of Ether.
Security
In terms of security, NEO is known as quantum computer proof because it is the only blockchain platform that is free from quantum computer threats. They have developed an anti-quantum cryptography mechanism called NeoQS.
International audience
Most of the works on NEO are usually in Chinese and very few for the English reading public. Translations for foreign investors are not reliable. Translations are not required on Ethereum. It is a global company that caters to both the international and English reading audience.
CONCLUSION
Which is better: NEO or Ethereum?
At this point, it’s hard to say which one is better. It’s also tempting to invest in both, because both projects are open source, Turin-complete, and highly supported by the community. NEO has stated its reason for positioning itself to be in constant and direct competition with Ethereum. However, both must focus on lacking mainstream adoption. In technology aspects, Ethereum is well positioned in the crypto market.
No one knows what their respective future is; Considering the grand scheme of things, both NEO and Ethereum are relatively new, and there is certainly room for both altcoins in the cryptosphere. It is also necessary that both keep their big promises. When this happens, we will surely have a clear idea of which cryptocurrency network is better.
