Unlike most cryptocurrency ratings published online, the Wise Crypto ratings have nothing to do with the current or future price of the currency. Whether or not a crypto is over or undervalued or priced today is completely irrelevant. Our research focuses on the sustainability of each project, the security, the use case, decentralisation, environmental impact, the technology, the scalability and the developers and teams behind the projects.
NEO Rating= 415/1000
Technology (0 to 300) = 195
- Speed (0 to 50) = 35
NEO is fast with a transaction speed averaging 15 seconds and also comes with a more streamlined PoS protocol, which offers one 1,000 transactions per second. This cannot be compared to Ethereum, which handles a mere 15 transactions per second.
- Cost (0 to 50) = 40
Initially, Neo offered free NEO and Gas transactions as part of its philosophy. However, the company implemented a transaction fee to avoid malicious activity on the network. Currently, Neo blockchain allows 500 transactions per block, 20 free transactions per block, and one miner transaction per block. These parameters are meant to allow the network to safeguard itself against an infinite amount of transactions flooding the network. The transaction fee is determined by a formula: 0.00001 GAS + 0.001 GAS, with a few special case exceptions (transactions that cost under 0.001 GAS are classified as low priority and are capped at 1,024 bytes). The transaction cost is quite affordable compared to Ethereum.
- Scalability (0 to 50) = 35
Neo blockchain is highly scalable thanks to crucial features such as dynamic sharding, which greatly increases the transactions-per-second (TPS). Unlike Ethereum, the platform does not suffer from scalability problems making it ideal for large-scale enterprise use cases.
- Environmental Impact (0 to 50) = 45
NEO uses a unique consensus mechanism referred to as the Byzantine fault Tolerance mechanism. Unlike Bitcoin, which employs proof-of-work protocol that allows BTC miners to compete on making the next block, Neo cannot be mined. This, therefore, means that it’s far more environment-friendly.
- Reliability (0 to 50) = 40
Neo is among the most reliable cryptocurrency. Its assets can easily be digitized on the NEO blockchain in an open, decentralized, trustworthy, traceable, and transparent manner that is free of intermediaries and their associated costs. The delegated Byzantine Fault Tolerance(dBFT) consensus mechanism eliminates instability issues and enhances reliability.
- Decentralization (0 to 50) = 0
NEO is incredibly centralized on purpose as the development team, and the City of Zion is adopting a philosophy of compliance, and catering to the Chinese government. The dBFT protocol makes a majority of the nodes controlled by the NEO council. Da Hongfei, Neo’s founder, stated that NEO is intentionally centralized in order to make it compete with Bitcoin and Ethereum. Nonetheless, the blockchain has announced plans to move towards decentralized.
Security ( -250 to 0) = -170
- Sybil Attack (-100 to 0) = -100
NEO blockchain is susceptible to Sybil attacks where an attacker could own 66% of the nodes. That means the attacker would have to pay 1000 GAS to be nominated for each node and each node elected by NEO holders. If, for instance, an attacker controls 66% of the nodes, they can launch the attack and steal the majority of the coins.
- Potential for Being Banned (-100 to 0) = -20
NEO maintains a clear distinction from other standard blockchain platforms, as it is focused on being regulatory-compliant. While digitized assets and smart contracts are popular on other blockchain platforms like Ethereum, the third key feature of what it calls its “digital identity” separates NEO from the rest. NEO is compliant with Chinese regulators who don’t need champion anonymity. Therefore, it has very little potential for being banned.
- Network Vulnerabilities (-50 to 0) = -50
Tencent employees discovered a critical vulnerability in the NEO blockchain, which allows hackers to steal funds using remote access to their wallets. On the blockchain, users start running a network node using default configurations and open a wallet allowing hackers to access the coins remotely.
Use Case (0 to 500) = 280
- Initial Main Use Case (0 to 100) = 60
NEO’s main use case is to digitize the various assets and ensures that the transactions are done with the help of smart contracts. The platform aims to develop a “smart economy” with a distributed network by utilizing blockchain technology and digital identity to digitize assets and automating the management of digital assets using smart contracts
- Mainnet (0 to 200) = 200
NEO was launched in 2014 and open-sourced on GitHub in June 2015. Its MainNet was released in October 2016 and had been running in stable capacity for two years. Its vision of a “smart economy” was set up along with the project rebranding in 2017. Neo mainnet was upgraded successfully on 3rd June 2019 to improve its stability by implementing the delegated Byzantine Fault Tolerance Mechanism (dBFT).
- Additional Use Cases (0 to 100) = 10
NEO has additional use cases, including that the platforms enable the creation of identity information of organizations, individuals, and entities in electronic form. NEO also supports the development of decentralized applications by continuously supporting and developing more sophisticated development tools and techniques.
Crypto casinos are a valid, legitimate and active use case: there are currently no NEO casinos.
- Additional working products (0 to 100) = 10
NEO developed a Universal Lightweight Virtual Machine (NeoVM), which has high certainty, high concurrency, and high scalability for smart contracts based on the blockchain. Other products from NEO include NEOfs, which allows for decentralized storage and NEOx that allows dApps to operate on different blockchains instead of being locked into one. NEO is also expected to launch their own decentralized exchange, Nash.
Core Team, Partnerships, and Developers (0 to 200) = 110
- Core Team & Developers (0 to 100) = 40
NEO has a solid development team behind it led by the founder-Da Hongfei, co-founder and core developer-Zhang Zhengwen, Secretary General-Tao Rongqi, and other community developers, operators, and contributors. There have been various calls inside China and in the rest of the world that NEO and Ontology are both scams created by the same team, however we have found nothing substantial behind these claims.
- Partnerships (0 to 100) = 70
NEO become the first-ever cryptocurrency to partner with Microsoft to experiment on the usability of blockchain networks. Neo has also recently closed a deal with the ZelCore wallet to increase mass adoption in the global economy. Also, Neo and Ontology have recently partnered for the creation of an interoperable protocol to spur development in the years to come. This partnership aims for an eco-friendly approach, with a low barrier to entry and at the same time, focusing on the scope of decentralized applications (dApps). More partnerships are expected in the future as the blockchain continues exploring new avenues.
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