What is the difference between NEO and Ethereum? This question is asked quite often, especially since one cryptocurrency is called an exact copy of another. NEO is called the “Chinese Ethereum” as many consider it an Ethereum clone.
But this is not entirely true. Both currencies are different and investors should understand this.
Ethereum can be thought of as a first generation smart TV, while NEO is a next generation 4K Ultra HD TV.
Ethereum and NEO offer their users a decentralized solution that allows you to share something valuable (money, evidence of ownership, confidential data, etc.) privately and without third party intervention. For example, banks, government agencies or private business.
But NEO cryptocurrency differs from Ethereum by several improved functions: it is faster, safer and more convenient for the user.
Four differences between NEO and Ethereum
To begin with, NEO is more scalable than Ethereum. Simply put, it is able to process more transactions per second than Ethereum.
Why does it matter? After all, it saves time.
Imagine that you are sending or receiving money through Ethereum, but before you 1000 other users sent a similar request for transfer / receipt. This means that you stand in a queue and wait. However, NEO has a much shorter waiting time.
Ethereum's current throughput is 15 transactions per second (the founders of Ethereum are working on increasing). NEO can handle up to 1000 transactions per second.
NEO is also more convenient for users (and for developers), as it supports many programming languages, unlike Ethereum.
Since NEO satisfies a wider range of possibilities, it has every chance of getting into the mainstream much faster than Ethereum.
Considering that a larger number of developers are involved on the platform, it is highly likely that NEO will continue to release more decentralized applications (DApps) in the future. DApps are applications related to the use of this cryptocurrency.
NEO protects the integrity of your investment. The network is designed in such a way that it does not allow unexpected hard forks to divide it into two networks. Unlike Ethereum, which has already spent hardfork, divided into Ethereum and Ethereum Classic.
The average user thinks about their funds begins to worry about this. Hardfork has created an atmosphere of uncertainty, and NEO wants to resist such cases by not allowing hard forks in its network.
In addition, the biggest difference between NEO and Ethereum is “GAS” - a unique reward paid to investors who hold NEO coins. At NEO GAS - these are exactly the dividends paid to the owners of NEO coins.
Unlike Ethereum, which rewards miners for Mining ether, NEO rewards all NEO holders with dividends, since NEO coins are not mined.
NEO vs. Ethereum: what to invest
At first glance, it might seem that NEO is superior to Ethereum as an investment. But let's not jump to conclusions.
Do not forget that Ethereum is still the second cryptocurrency in the world by market capitalization. In addition, Ethereum founder Vitalik Buterin recently unveiled a technology development concept. Ethereum 2.0. with various improvements and improvements.
We are faced with a serious dilemma: should we buy Ethereum or should we buy NEO? But why choose when you can get the best of both coins?
The fact is that there are more 1300 cryptocurrencies. Naturally, you can not buy them all. It is obvious that Ethereum and NEO have their pros and cons. However, when comparing their advantages with most other currencies, they outweigh their disadvantages.
These coins are much better than others in all their properties, starting from opportunities and ending with support in the community.
NEO vs. Ethereum: future potential
Cost analysis of Ethereum with NEO can prove to us that both cryptocurrencies are worthy investments.
Both the price of NEO and the price of Ethereum have increased significantly since the beginning of the year, and at this rate, it is likely that their growth will continue in 2018.
Both Ethereum and NEO cryptocurrencies have serious prospects. As mentioned earlier, Ethereum 2.0 is in development, and immediately after implementation can fundamentally change things. Ethereum has become the second most popular blockchain network after Bitcoin, which guarantees further growth in the coming years.
Worldwide, NEO is working to expand its network. Its founder shared his plans for entering the world markets outside of China. Meanwhile, NEO is expanding its presence in China, all this happens even in the absence of support from the Chinese government.
Despite the incredible increase in the NEO 5x, the investment remains highly risky. NEO has too many climbs accompanied by sharp falls. Ethereum, by contrast, shows itself to be a more stable investment.
So, if on a roller coaster you are swayed, it is better to choose a calmer attraction in the form of Ethereum.
Conclusion:
The differences between NEO and Ethereum are too obvious to be ignored. NEO is the Ethereum of the East and is nothing like Ethereum. Obviously, if they were the same, there would be no incentive for investors to choose NEO over the more popular Ethereum.
If you ask who will win in the confrontation: NEO or Ethereum - there is no definitive answer to this question. If the increase in the value of the cryptocurrency market continues in the 2018 year, then both NEO and Ethereum are well positioned to make a large return on investment.
In the end, your choice may depend on the size of your financial reserve. With a modest amount, say $ 5000, you can buy only 5 ethers. You could buy 10 NEO coins for about $ 1100, and you will have enough funds to invest in other currencies.
Remember: a well-diversified portfolio is less risky and can bring higher returns with less risk. Invest wisely!