Following its announcement on July 4 regarding the election of new consensus nodes and a move to decentralization, the price of NEO has soared.
At the time of writing it currently occupies 10th position for overall market capitalization on CoinMarketCap and is trading at $40.42, up almost 9 percent.
The move means NEO has taken over from not only TRON but also Tether (USDT), which has been making significant gains lately with the creation of new tokens. The competition is tight though, with only a few million dollars in difference between them. The creation of more tokens by Tether could easily propel the stablecoin back into 10th position.
NEO is no new player in the game, having been around for a quite a long time now. It began life as AntShares back in 2014 but rebranded to NEO last year in an attempt to refresh its image.
It was originally designed as a scalable network for DApps and smart contracts and is comparable to Ethereum in its use of sharding to solve scalability issues. It was developed by Da Hongfei of Chinese company ONCHAIN and enjoyed early partnerships with Alibaba and Microsoft.
City of Zion Election
In the three days since the announcement, the NEO community has been very active, with a positive news coming out daily. The decentralization of the network was considered a result of the election of a City of Zion consensus node into the NEO mainnet. City of Zion is a global collaboration of blockchain developers and designers that are well known in the industry.
Other than City of Zion, a number of other consensus nodes are running on the testnet with the possibility of election to the mainnet.
Despite the sudden spike in price, Da Hongfei notes that NEO must take the decentralization process slowly, as he stated below.
We have to be very careful with decentralization of the consensus nodes because the protocol of NEO is evolving very fast. We need those consensus nodes to act very quickly to upgrade, and if there is a bug or a security issue, we need them to respond very quickly.”
Image From Shutterstock