Most of you know by now that NEO isn't divisible. It's because it's a share in the network, entitling you to voting rights and dividends (through GAS generation and system fees), so it's not really to be used as a currency. NEO's scarcity essentially means that only three groups of people can realistically gather large quantities; businesses, whales and early adopters. It may not be an issue for some now, but NEO's price will become increasingly prohibitive (technically you can hold a fraction on an exchange and even gain your share of GAS, but admittedly that's not ideal).
That being said, owning NEO is not necessary to be involved with the Smart Economy. In fact, the vast majority of transaction volume on the NEO network will be done using GAS, the utility token and fuel of the network.
Quick Facts:
- Divisible to 8 decimal places (works as a currency)
- No transaction fees (controlled by consensus nodes, who are voted in/out by NEO holders).
- Up to 10,000 TPS (natively as the BFT network scales and becomes more optimized).
- State channels allow for millions of TPS (Trinity)
- Instant Finality - 1 confirmation is enough. NEO cannot fork, so there's no need to ensure your transaction is on the longest chain. That means transaction speed equals the block time. Right now, it's 23 seconds. Current goal is 15 seconds. More nodes = lower block time (consensus is reached quicker through BFT with additional nodes). Yes, that means that NEO's decentralization process just makes it quicker and quicker.
We're talking about a token that scales incredibly well, has no transaction fees unless NEO holders decide to vote for nodes that want them, and allows for essentially instant transfers. Since people want to hold their NEO to generate GAS rather than spend the NEO, using GAS is a more lucrative choice for ICOs since you can pay an exact dollar amount, unlike NEO where you are limited to a factor of NEO's price. This will be a more common theme as NEO holders start refusing to spend NEO on ICOs (it's already happening). The first ICO on NEO known to accept GAS is NEX.
I want to talk about NEX a little too. It's the Neon Exchange, a decentralized trade and payment platform, created by the City of Zion, an independent NEO development community. Here's why you should care about NEX:
- Off-chain matching engine enables it to match the performance of centralized exchange
- NEX partners will provide NEO/GAS FIAT pairings
- Cross-chain trade; plans to have ERC20/223 support by Q4
- NEX API - want to use a dApp but don't want to buy the native token? Use the NEX API to pay with GAS, kinda like how you pay with a credit card in any country with the currency exchange being handled for you.
The NEX API means that GAS isn't only going to work as the native currency of the Smart Economy itself; it can also function as the native token of every single NEP-5 token-based dApp (and ERC20 tokens by Q4 2018). One currency for all your dApps!
One last reminder; despite being intrinsically linked to a Top 10 crypto and having perhaps the largest use case of any crypto in existence (the smart economy can connect everything), it's sat at a 500M market cap. There are arguments either side for if NEO:GAS will ever reach 1:1 or if GAS could even exceed NEO's price eventually, but regardless it clearly has an insane amount of room for growth. Don't sleep on it.
Important Reading Material:
About NEO's Consensus Nodes & Transaction Fees
I'll try answer any questions I can regarding NEO & GAS. I'm not affiliated with NEO/CoZ, I'm just a fanboy that spent a lot of time reading and just became increasingly impressed (and invested).
Oh, and you can totally tip me some GAS if you like: AddMDjaApH4vg6yat6YXonoErXftx7oorg
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