There are multiple blockchain solutions trying to solve the same issue. As a result, most coins are getting zero to low chance to compete in the market. One such competition we get to see is between Neo vs Ethereum.
As a result, it becomes tough for the investors to figure out which coin they should be investing in for long term gains. In case you are too confused between both the coins, then I am here to compare Neo vs Ethereum and explain to you all the details.
So here we go:
Basics of NEO vs Ethereum
Before we start comparing both of the blockchains, it is important to know why these coins are facing each other in the first place.
The primary reason is that both of these projects are solving the same issue. Unlike Bitcoin, both NEO and Ethereum are trying to solve bigger issues than being a digital currency.
Both the blockchains help with dApps and smart contracts development and distribution. Plus, you can use both coins for ICOs.
dApps, Smart contracts, and ICOs are said to be the next big in cryptocurrency. Hence, it is important for any project to be number one and stay above its rivals. Hence, we are having a debate between Neo vs Ethereum.
NEO vs Ethereum: Key Differences
Both Ethereum and NEO are trying to serve the same purpose. But they are quite different from each other in many factors. Such as:
Adoption by developers:
When it comes to developers' adoption, NEO is said to be more accepted by the developer community. Since it supports programming in multiple languages like Java, C++, C#, and others. So anyone having knowledge about these programming languages can get started with projects development on the NEO blockchain.
On the other hand, Ethereum uses Solidity, which is the only programming language it supports. Compared to programming languages like Java, Solidity is still new in the game. And it was designed by the Ethereum founders exclusively for Ethereum.
As a result, not too many people are aware of Solidity and know how to code using it. But yes, there are lots of resources available online that help you get started with Solidity.
Transaction speed:
Transaction speed is another important factor for any blockchain. And in this case, NEO is said to handle up to 10,000 transactions per second. On the other hand, the Ethereum blockchain supports 15 transactions per second as of now.
Thanks to this huge gap in the transaction speed, there are many users who prefer using NEO. However, Ethereum is also planning to launch their Ethereum 2.0 protocol which promises up to 100,000 transactions per second which can be a NEO killer in the near future.
Divisibility:
At one side, Ethereum is divisible into smaller units called GAS. But NEO is indivisible. NEO is one of the few cryptocurrencies which cannot be divided. This prevents you from transacting amounts like 10.5 NEO or 1.2 NEO. Since it only supports whole numbers. But NEO has another token under its blockchain, which is GAS, and it is divisible.
Blockchain Fuel:
The neo blockchain has two different coins, which are the NEO and GAS. Also, Ethereum’s smaller units are known as GAS.
Users can use GAS to pay transaction fees on both NEO and Ethereum blockchains. However, Ethereum’s native currency is called Ether and its smaller units are known as GAS. You can pretty much say that if Ether is dollars, then cents would be the gas.
However, you should not get confused between both. NEO and GAS are two different tokens.
ERC-20 vs. NEP-5 Tokens
Creating new cryptocurrencies has become pretty easy with Ethereum’s ERC-20 protocol. These ERC-20 tokens have great support, and they get easily integrated into wallets, exchanges and other protocols. Plus, they are backed by community support and well documented.
NEO has also entered into the same space with its own token standard called NEP-5. NEP-5 follows many of the same rules and guidelines as the ERC-20. But it is based on the NEO blockchain.
Developers who are interested in building dApps on NEO can now create their own NEO native tokens. However, NEP-5 is not as widely supported as ERC-20.
But it doesn’t really show any signs that Ethereum has overtaken NEO. Also, it is reported that NEO is planning to standardize its NEP-5 protocol for massive adoption.
NEO Fees vs Ethereum: Fees
Fees is one of the key factors when we compare any blockchain. No one would love to pay tons of fees for making transactions.
Luckily, most NEO transactions are free, with the exception of certain types of transactions and big transactions. For instance, you can include a transaction fee to have your transaction processed faster during times of high network congestion.
However, for basic transactions, you can choose not to pay transaction fees. But on the other hand, for Ethereum transactions, you have to pay transaction fees.
As a result, NEO has the upper hand when it comes to transaction fees. As it depends on the user whether he wants to pay the fee or not for faster transactions.
NEO vs Ethereum: Future
Talking about both of the blockchain projects' future, without any doubt Ethereum is more popular and valuable compared to NEO right now.
But we cannot deny the fact that NEO is equally great. It makes creating NEO smart contracts less complicated. As it has the support of wider programming languages. Plus, it supports more transactions per second compared to Ethereum. Along with that, transactions are free in most cases.
You can also generate passive income through NEO by NEO staking. But when it comes to Ethereum, there is no such option to earn money on your ETH holdings. Although, there are some services that offer crypto savings accounts.
Final Words:
So that was all for Neo vs Ethereum. Overall, Ethereum is definitely the most popular blockchain network out there. And NEO has to do a lot of hard work to compete against it. Along with that, there are lots of new cryptocurrencies like Solana have come into the picture, which is giving a tough fight to Ethereum. But with the Ethereum 2.0 protocol, things might change. Hence, a lot of users still have their hopes high on ETH protocol.
Comments