The cryptosphere is highly competitive and, most of the time, a very ruthless environment. It’s an environment in which every altcoin tries to steal the crown that has been over Bitcoin’s head ever since it was launched by Satoshi Nakamoto on 9 January 2009.
Be that as it may, there are still various other internal “battles,” numerous coins and projects competing among each other in order to be the best in their respective field. One such cryptocurrency pair which is constantly competing against each other is NEO vs Ethereum.
This competition has spurred both from the fact that the platforms are somewhat similar and also due to their functional differences. Even though NEO is often referred to as the “Ethereum Killer” or “Chinese Ethereum,” it has a lot of catching up to do before it will be able to dethrone the second most popular cryptocurrency after Bitcoin.
But, the main question on most investors and crypto aficionado’s minds is: “Is NEO the next Ethereum?.” To answer this question, we will look at both projects and at what makes them tick, at their similarities as well as their differences.
Similarities
NEO and Ethereum are both blockchain projects designed to host and run smart contracts. Furthermore, they are both able to host ICOs and dApps in a decentralized way. Another key similarity is how they are fueled. In the case of Ethereum, the platform is fueled by Ether and Gas, and in the case of NEO by NEO or NeoGas (or simply Gas).
Additionally, both the projects are open-source and Turing-complete. Last but not least, both of them have very good teams and strong communities behind them.
Differences
Programming language
One of the main differences between the two is determined by the programming language used. Most Ethereum fans know that the platform’s smart contracts and dApps are all written in a new programming language called Solidity. On the other hand, NEO’s smart contracts and dApps can be written and compiled in C# and Java.
Divisibility
The native crypto-fuel of NEO’s blockchain is not divisible. NEO only exist in whole numbers, meaning one cannot send 10,5 NEO or 1,2 NEO. That is exactly why NEO requires another token, the GAS, which is divisible. Ethereum’s Ether, on the other hand, is divisible into smaller units.
Consensus mechanism
While Ethereum uses a typical proof-of-work mechanism, NEO makes use of a delegated Byzantine Fault Tolerant (or dBFT) consensus mechanism. Many regard the later to be an improved upon for typical proof-of-stake. It’s also believed to be more energy efficient when compared to the proof-of-work.
Transaction speed
The platforms are also different when it comes to the total number of transactions per second they can handle. Currently, NEO can handle about 10,000 transactions per second, a lot more than Ethereum which can only handle about 15 transactions per second.
Government support
NEO is the first biggest Chinese blockchain and cryptocurrency project that’s being supported by the Chinese government. What’s even more impressive is the fact that NEO is also backed by WINGS, Alibaba, and various other tech giants.
Ethereum is not backed by any nation’s government, even though Ethereum is aware of the massive potential of the Asian markets.
International popularity
As mentioned before, NEO is nowhere near as popular as Ethereum on the world stage. Ethereum is without a doubt an impressive global enterprise which specifically caters to the English-reading audience. Because of its Chinese roots, NEO is somewhat limited regarding information specifically aimed at English-speaking and reading audience.
Quantum computer-proof
Just like most other cryptocurrencies out there, Ethereum is not quantum computer-proof. It is believed that quantum computers can hack most of the cryptographic code used in blockchain projects. NEO has been fast at taking protective measures, becoming one of the first crypto projects to be quantum computer-proof.
Smart contract differences
Both Ethereum and NEO have smart contract systems. The main difference between the two is the fact that NEO allows anyone to develop smart contracts using most of the popular, long-time existing programming languages. On the flipside, Ethereum smart contracts require anyone is interested in learning how to develop them also to learn a programming language called Solidity, making the whole process more complicated.
The teams behind the projects
Most of you already know that Ethereum is the brainchild of Vitalik Buterin, one of the brightest minds of our generation. At just 24 years of age, the Russian-Canadian programmer is currently one of the most important voices in the cryptosphere. Vitalik alongside other co-founders, launched Ethereum in 2015, which has since been one of the main competitors for Bitcoin.
NEO was founded by Da Hongfei, an individual with incredible experience in the crypto field. He founded AntShares (later rebranded to NEO) in February 2014, a very popular platform for building decentralized apps. The team includes other very knowledgeable individuals with a lot of experience in the blockchain sphere.
So, is NEO the next Ethereum?
Even though no one really knows what the future will hold, it’s quite clear that NEO is slowly but surely becoming the force it was always intended to be. Ethereum has the upper hand when it comes to mass adoption and popularity. However, NEO has arguably better and more versatile technology.
In the grand scheme of things, both projects are relatively new, and they both have to undergo a lot more development until they reach a certain level of “maturity.”
That said, NEO is not the next Ethereum, yet. But, it could very well be in the near future. If Ethereum doesn’t invest more in matching NEO’s technology, we could very well soon a shift in positions.