Transforming Neo (NEO): How blockchain became an all-in-one platform
Neo X launch and transition to Neo N3
One of the most high-profile events for the Neo ecosystem in 2024 was the launch of the Neo X sidechain. In April 2024, the Neo project team announced the launch of the Neo X test net. This was a preparation phase for the launch of the leading network (main net).
The Neo X network is an Ethereum Virtual Machine (EVM) compatible sidechain. The distinguishing feature of Neo X from Neo is the dBFT (Delegated Byzantine Fault Tolerance) consensus algorithm. Unlike the classical Proof-of-Stake (PoS) mechanism, dBFT protects the network from so-called MEV bots, which can perform sandwich attacks (sandwiching) on users, thereby incurring losses.
In addition, the Neo X network provides a cross-chain bridge with the leading ecosystem network, Neo N3, which is an up-to-date version of the main blockchain. Users can transfer any available assets between the Neo X and Neo N3 networks.
The Neo X leading network was launched in July 2024. In addition, the Neo team has allocated $20 million to support developers creating decentralized applications (DApps) for the Neo X sidechain.
Also, in 2024, the project team upgraded the Neo network to Neo N3. As of October 2024, migrating the native NEO and GAS platform cryptocurrencies from Neo Legacy (as the legacy version of the network is now called) to Neo N3 is ongoing.
Neo N3 is in many ways superior to the previous version of the blockchain and provides several significant improvements:
- A large number of new, more advanced features, such as blockchain oracles and digital identity;
- Higher performance;
- Highly modular architecture;
- Advanced governance model (DAO);
- More advanced developer tools that simplify the process of building decentralized applications.
Due to the incompatibility of some features, developers had to create a separate decentralized network for Neo N3. This is why the migration of NEO and GAS cryptocurrencies from the Neo Legacy blockchain is necessary. After the migration to N3, the Neo Legacy blockchain will continue to exist.
More functional smart contracts
The Neo team has expanded the feature set for Neo N3 smart contracts, adding features such as a two-level permission setting (at the Manifest and Call levels of the blockchain) and a new standard for token issuance, NEP-17. The new standard simplifies the transfer of tokens and allows smart contracts to add custom logic when receiving them.
NeoFS
NeoFS is a distributed file storage that allows users to control their data entirely. NeoFS will enable you to manage your data without storing it in a blockchain.
Each user can become a member of NeoFS and join their node to the shared network. Each user will be rewarded for providing their own free space.
NeoID
NeoID is a digital identity tool developers can use to authenticate users in their DApps. Such tools will be helpful, for example, in the fight against sybils — users with more than one wallet under their control on a blockchain network.
Oracles
Neo N3 has its own Oracle-based service that allows developers to use external data in their applications. Its smart contracts allow it to process data even outside its blockchain.
Neo Name Service
The developers of Neo N3 introduced their own NNS namespace, similar to the Ethereum Name Service (ENS). Neo Names Service uses an innovative approach based on non-fungible tokens (NFTs) in the form of which each domain address is represented. In this way, users can quickly and seamlessly transfer domain ownership.
dBFT 2.0.
Like Neo X, Neo N3 uses the dBFT consensus mechanism, which requires the agreement of at least ⅔ validators to validate transactions and mine new blocks in the network. dBFT is an enhanced version of the PFBT (Practical Byzantine Fault Tolerance) mechanism used in blockchain networks such as Cosmos, Zilliqa, and Quorum.