NEO 3.0 Launches Testnet, Prepares for Overhaul in 2020
The NEO network will go through a major overhaul in early 2020, after failing to reach its potential.
NEO 3.0, the long-awaited project, has launched its testnet. The new network will have to fix the flaws in the current NEO system. In the past years, NEO attempted to compete with Ethereum and showed features of being one of the leading networks.
However, the chain was soon displaced by newer projects with more viable protocols. The chief flaw of NEO was the network that only had seven verification nodes. Thus, consensus could come under attack.
The new NEO network and the NEO Virtual Machine will have built-in features for the chief operational needs. The NEO and GAS tokens will remain, as well as a Policy Contract. This smart contract will deal with consensus and the state of the distributed ledger.
The NEO network will use Delegated Byzantine Flaw Tolerance to verify blocks. Certain nodes will be elected through voting, to approve new blocks. Once a block is approved and distributed through the network, its transactions cannot be altered.
The new version will start either as a hard fork, or through a snapshot and a new Genesis block. The network will be relatively centralized, that is, consensus will still happen among a small number of nodes. NEO will also try to position itself as an enterprise blockchain, suitable for businesses.
Thus, NEO takes a different path, after its publicity was taken over by newer projects like EOS and TRON (TRX).
“NEO 3.0 hopes to be an entirely new version of the NEO platform built for large scale enterprise use cases. It will need to provide a higher TPS and stability, expanded APIs for smart contracts, optimized economic and pricing models and much more to compete with the likes of EOS, Tron, Nervos, Dfinity, Harmony Protocol and of course Ethereum, Cardano and others,” commented blockchain consultant Michael K. Spencer.
The NEO market price has also slid dramatically, instead of challenging Ethereum (ETH). NEO currently trades at $9.15, still a top 20 coin. For the past months, NEO has remained locked in a tight range, far from the peaks around $200.