Gas: The Subtle Coin Set to Rise under NEO
With a lot of misinformation in the cryptocurrency world, there is a lot to gain from the industry once you get the right information about each individual platform and coins supported. Gas (GAS) is getting a heap of attention with a developer conference around the corner. The price of GAS has lately skyrocketed from $50 to $70. NEO on the other had has grown by over 45% and is currently trading at $158.08 according to CoinMarketcap.
Gas (GAS) rides on the same platform with NEO; however these are two different currencies that drive the entire NEO network. GAS and NEO are capped at 100 million tokens. Despite the slump in the market, both NEO and GAS prices are looking up. One of the reasons the two are appreciating is the marketing drive around them and the support from the media.
Enthusiasts are banking on GAS with the impending launch of a new trading interface and engine launch in Q3. The new trading interface will feature NEO, GAS and NEX transactions to begin with. Once this arrangement succeeds, Q4 will see a cross chain support of ETH and ERC20.
What is NEO?
In a nutshell, NEO is not an asset or a coin, this sis the management token that takes care of the network governance and management. Simply put, once you own 1 NEO you are entitled to vote who takes care on the next block. As a stakeholder on the platform, you are part of the decision making for any anticipated changes. With a total of 100 million indivisible token created at the genesis of the network.
The NEO system decides on how you can earn GAS. As a participant, if you own 1NEO when one block is completed you receive newly minted GAS. With I NEO, you can earn as much as 0.0003 to 0.0005 GAS daily. The more NEO token you own means you get rewarded with more Gas (GAS).
What is GAS?
Gas is the operational token according to the NEO Whitepaper. Its core function is to fuel the platforms’ tokens and smart contracts that ride on the NEO ecosystem. The idea behind the use of GAS is to ensure the NEO management does not interfere with how the NEO platform is run.
GAS grows by 8 in every block or better still every 15-25 seconds. This is ultimately split between all NEO shareholders; however these rewards decrease by 1 after every 2 million blocks meaning with a maximum limit of 100 million, it will take over22 years.
To claim your GAS, you have to hold your NEO in your private wallet. In the event that you purchase your GAS and store it in an exchange wallet, you are not rewarded with any GAS. This is one of the many ways of making the Gas coin valuable while NEO’s relevance is maintained in the market.
Which Way for Gas (GAS)?
With the continuing rivalry in smart contracts between NEO and Ethereum, the former seems to be more inclined on future features, identity and assets as opposed to Ethereum. On the other hand, the GAS token double up as an investment avenue and an operational coin.
The current investor excitement around NEO is that once you invest, you are automatically guaranteed o earning GAS as long as more blocks are getting completed. Holding long on NEO means you are increasing your dividends. This is a win-win situation for both coins because the adoption of NEO means the growth of GAS.
Some of the accumulated GAS dividends are converted to network fees. As a user, part of your GAS is used to deploy and run smart contracts. The fee is relatively proportional to the amount of computing power consumed by your contract. The fee is also used as a rewards to the “bookkeepers’ activities on the system.
Currently GAS has a supply of 9.62 Million coins and a total volume exchanged of $59,082,821. Billed as the fuel for China’s blockchain, this could be the most undervalued digital asset but the most promising across the globe. Much of the focus is shifting towards the fact that any time you transact an asset on the NEO platform you need to use gas. By so doing, Gas (GAS) is subtly raiding on NEO to penetrate the market.