What is NEO and GAS?
GAS is a cryptocurrency that was developed for the NEO platform. NEO is a smart economy platform that was initially named AntShares when it first appeared in 2014. This company that provides blockchain-based financial services through the use of smart contracts has been referred to as ‘China’s first blockchain platform’.
GAS is a secondary result of storing NEOs, the platform’s other token that represents shares in the NEO market. The NEO tokens cannot be divided. GAS is generated at a rate of 8 GAS per block. The GAS reward per NEO decreases by 0.02 every year, and when the GAS circulation will reach 100 million their production will stop. Unlike NEO, GAS is a dividable token. There are several NEO to GAS calculators that can help you with the conversion.
What Does GAS Do?
The cryptocurrency has the purpose of managing the rights of the NEO coin, these rights being, among others, account reconciliation and changes to network parameters. Each time a smart contract is executed, a bookkeeping system must be employed, which will then be validated by the blockchain.
GAS must be spent on the registration fees of the smart contracts in order for the apps to run on the NEO platform. Afterwards this GAS will be recycled back to the NEO holders along with the newly generated GAS. Basically this means that the more the NEO network is used, the NEO holders will produce more and more GAS.
The Market Cap
The number of GAS tokens that currently exist is estimated to be around 82 million, each coin having a value of USD 60.86 per coin at the time the article was written. This results in a market cap of $556,094,040 USD. Additionally, the trading volume of GAS in the last 24 hours has been around $27,400,100 USD.
In June, a GAS token was valued at less than USD 2.00, having an increase of 1,400% in September. It has since seen some dips, but in the last months it has seen a steady increase in price.
Exchanges and Wallets for GAS
At the time being, the token can only be purchased and sold by using the crypto trading platform, Binance.
After acquisition, the GAS coins are relocated into a “NEO Wallet” where the coins will be stored.The wallet is provided by NEO and can be found in their AntShares app.
The Pros and Cons
Although GAS has seen a rise in its price, there are no real-world applications for the token aside from developers or users of the NEO platform. Other than that, there is no other reason to have it.
The interesting thing about GAS is its dynamic with NEO, seeing as NEO holders receive GAS in a similar manner to which shareholders earn dividends. This means that said holders are rewarded with a part of the GAS fees paid by the developers.
Another downside would be the fact that you can’t buy GAS for fiat on any exchange.
While the NEO platform looks very similar to many other blockchain projects, GAS has no real appliances and there are other coins out there with much more potential.