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Will Neo become the Chinese state blockchain?

2 min read

There are coins that were still in the charts before 2017 and have now disappeared into oblivion. Anyone who thinks NEO falls into this category is wrong. Because since this year’s bottom at 16 US dollars, the project has made up around 50 percent and is persistently climbing up in the ranking of the top coins.

Is there a rebirth looming? How can the growth be explained?

In fact, there are quite a few innovations at NEO that have led to increased activation of the “buy button” among investors. Thus, NEO occurs with immediate effect the BSN. This is the Blockchain-based Service Network, a Hong Kong-based industry association that wants to combine various DLT projects on the one hand and bring them into line with Chinese regulations on the other. We remember: Since the summer of 2021, both the mining and the sending of private cryptocurrencies have been prohibited.

The cooperation with the BSN is therefore a great success, as it significantly improves the status of the NEO blockchain in China. It is possible that NEO is even speculating on a kind of monopoly position in the Middle Kingdom. It wouldn’t look bad on them. After all, as far as we know, the Chinese state has a finger in the pie with the project anyway.

Neo: Integration of NFTs completed

In addition to regulatory approval, the integration of non-fungible tokens (NFTs) is probably driving adoption. Because with the launch of Neo Mainnet 3.0, also known as Neo N3, digital property rights can also be mapped on the blockchain. Instead of NFT, however, they are called Decentralized Digital Certificates (DDCs).

What makes the Neo-NFTs special is the feature of also renting out NFTs. The system is called Rentfuse and describes a kind of smart rental contract for the ownership of a digital asset.

With the blessing of the state

Neo’s strong performance is also interesting from a geopolitical perspective. Because to all appearances, China has no interest in banning cryptocurrencies per se. Only those that China cannot control are treated restrictively. BTC is the best example of this.

How useful a “blockchain” with state approval and participation really is is another matter. Finally, open blockchains have properties such as uncensorability, permissionlessness, and resilience. In addition, it is very questionable whether Neo can still compete with the established NFT and smart contract platforms such as ETH and Solana at this point. It could already be too late to catch up.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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