Johnson Zhao: Security tokens are the new industry trend and NEOs’ area for developing.
General Manager of Neo Global Development told in his interview to LetKnow.News about the differences between NEO and other cryptocurrencies, “smart economics” and their plans for Ukraine.
– Tell us about yourself and about NEO. Previously, the project was called Antshares, why did you change the name?
– I'm Johnson Zhao, NGD (NEO Global development) General Manager. NGD executes strategies outlined by NEO Foundation. NEO is a non-profit community-driven blockchain project. It utilizes blockchain technology and digital identity to digitize assets and automate the management of digital assets using smart contracts. Using a distributed network, it aims to create a "Smart Economy".
Before rebranding, our business was mainly focused on digital assets. It was rebranded to NEO to get aligned with the prospect of the a smart economy.
– What is the value of your cryptocurrency? And what is its main difference from other cryptocurrencies?
– Speaking of the value of NEO token, we must clarify that NEO adopts a dual-token economic model composed of NEO and GAS. NEO is the governing token of NEO ecosystem. NEO token holders are granted the governing rights to manage the network. GAS token, as fuel token, can be used for transactions and smart contract deployment. The maximum limits of both tokens are 100 million. 100 million NEO are generated in the genesis block of NEO network while 100 million GAS, corresponding to the 100 million NEO, will be generated through a decay algorithm with the generation of new block heights to addresses holding NEO, which distinguishes NEO from the majority of cryptocurrencies. The value of NEO and GAS token is attributed to the free transfer of their value within the economic model, which helps realize the smart economy. Besides, NEO created dBFT, which was improved over BFT, and applied it for the first time to public chains.
– One of the purposes of your token and blockchain is to create a smart economy. What is it?
– Smart economy is a digitalized, programmable and trustless economy. It can be realized by using digital assets, digital identities and smart contracts.
– One of the components of cryptoeconomics is tokenization. What are the benefits and features of this tool?
– Tokenization was a popular idea last year. Currently the industry is more inclined to move tokenization into the regulatory sphere and encourage its integration with traditional industries. Therefore tokenization is now replaced by a new concept- security token (ST), which is a trend of the industry and is where NEO is heading towards.
– Do you think it is necessary to regulate cryptocurrency operations? Why?
– Regulation is inevitable, which can be told from the stances of different governments in the world. Positively speaking, good regulation will lay a more solid ground for blockchain technology development. As a public chain project, we have been adhering to the laws and regulations and hope that by continuous improvement and technology iteration, the projects and dApps in our ecosystem can be compliant as well. NEO is qualified to lead the industry into the policy sphere.
– In your opinion, what conditions are needed to restore the cryptomarket?
– The market exists and grows as it will do. Getting involved in this big technology revolution, we prefer to focus on the technology itself and conduct research. We hope to facilitate technology advance by our efforts and dedication. Though market plays an important role, it’s not our primary concern. As I said before, in a well-regulated environment, technology iteration of projects will restore the market.
– Do you consider opening a representative office in Ukraine?
– Establishing global presence is one of our strategic goals and we are continuously expanding as planned. Europe is a strategic focus. Ukraine, as a European country, surely is within our plan. Someday in the future, we may consider extending our ecosystem to Ukraine if it can offer high-quality developer resources and a mature community.