Bitcoin Global News (BGN)
March 19, 2018 -- ADVFN Crypto NewsWire -- Neo (market cap $5
billion), the so called "Chinese Ethereum," is both vulnerable to
the stifling effects of potential Chinese regulation, as well as
perfectly positioned to benefit from any move by the Chinese
government to partner with an appropriately aligned cryptocurrency
company. Neo may provide the middle ground China needs between
unregulated, decentralized, anonymous blockchain platforms like
Bitcoin and Ethereum, and the completely regulated banking and
credit card systems. Perhaps also worth considering when evaluating
the potential of Neo is the fact that the Chinese people like their
national alternatives: Alibaba vs. Amazon, Baidu vs. Google, WeChat
vs. Facebook.
The Chinese government was reported to be experimenting with the
creation of its own national cryptocurrency in mid-2017, in spite
of its hard stance against cryptocurrencies and ICOs in general.
There were also rumors that the government might be open to working
with an existing cryptocurrency company that is willing to play by
its rules. If true, local Chinese ventures Neo and Onchain would be
the top contenders for such a public-private partnership.
Neo’s OnChain technology platform was designed to be
China-friendly, i.e., centralized and easy to regulate. Neo and
OnChain, two separate but interdependent companies, are both based
in Shanghai. Neo and OnChain together provide a smart contracts
ecosystem, a shoot-for-the-moon partnership that aims to create a
"smart economy" that’s made up of what is summarized as "Digital
Assets + Digital Identity + Smart Contracts."
Neo, starting out as AntShares in 2014, was China’s first
blockchain platform. OnChain was founded in 2016 as a
venture-backed company that provided blockchain-based AntShares
financial services. In 2017, AntShares rebranded as Neo.
Neo and OnChain link an asset with an equivalent and unique
digital avatar on the network. Users are able to record ownership
of assets that they create or inherit, and they are able to buy,
sell, exchange, or otherwise circulate all kinds of assets. By
registering assets on its platform with a validated digital
identity, user/owner rights are “protected by law” in China. Key
information about an asset, such as participating individuals,
organizations, and other entities, is cryptologically verified and
secured.
Every individual, business, or any other entity operating on the
Neo platform, and every node on the platform, is expected to have a
unique digital identity. This provides the necessary financial and
legal framework for regulatory friendliness that the Chinese
government will require of any prospective national
cryptocurrency.
Neo and Onchain are two separate entities that exist
independently, and neither owns the other. Neo and Onchain envision
a future in which they will be able to achieve cross-chain
interoperability. For now, Neo targets the B2C segment, while
Onchain focuses on B2B enterprise services. Both are funded
separately. Neo is funded by a public community, whereas Onchain is
backed by Fosun, China’s largest private conglomerate.
Cryptocurrency investors may do well to watch closely as the
drama around Neo unfolds. Its value could spike dramatically, not
only if the Chinese government moves in one way or another to
legitimize the Neo as a nationally-favored cryptocurrency, but also
if other authoritarian governments, wary of the decentralized and
anonymous nature of cryptocurrencies, also grow fond of Neo.
By: BGN Editorial Staff