So-called “Chinese Ethereum” NEO has garnered a great deal of
So-called “Chinese Ethereum” NEO has garnered a great deal of popularity in the crypto market so many if you may be wondering how to acquire some NEO coins. If you are crypto miner, perhaps you are confused thinking: “are NEO Coins mineable?”
If you are a crypto newbie you are probably confused why such a question about a crypto coin would arise in the first place.
All cryptocurrencies must be mined, that is all crypto coins are mineable. Right? WRONG.
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Mineable Vs. Unmineable (Pre-Mined) Coins: What’s The Big Difference?
Let us know see what these two types of coins are, to begin with and what the main difference between them is.
Mineable coins like Bitcoin can be mined by validating blocks by crypto miners adept at it.
Most coins in the market in fact work that way. For many of them, there is a supply hard cap (like 21 million for Bitcoin) within which the supply is restricted.
But at any given point, the circulating supply also depends on how many Bitcoins have been mined.
While not all mineable coins may not have a hard cap on supply, most do have an algorithm to determine how its supply will work, how it will increase over the years and upon meeting what criteria, the supply will stabilise.
Now non-mineable coins in this context refer to pre-mined coins. In case of these coins, the developers have already produced them and now they are up for purchase.
However, crypto miners cannot produce new ones by validating blocks.
Is There A Catch In Pre-mined Coins?
For mineable coins, a great deal of thought and planning goes into designing the consensus protocols used in blockchain to make sure decentralization and democracy is maintained in the running of the blockchain network.
As there is no need for validation for the sake of mining in the blockchain networks of pre-mined coins, concerns about heightened centralization is always rife.
That is considered to be the main catch in pre-mined coins, although they are not unviable otherwise.
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Why Do Developers Still Choose Pre-Mined Coins Sometimes?
Developers often choose pre-mined coins when they are primarily focused on not providing a just a cryptocurrency but a revolutionary service based in blockchain.
In order to fine tune the other aspects of such a platform well, like in the case of payment protocol Ripple, it may be worthwhile to keep the mining control in the developers’ hands.
As the supply variables become less volatile, it is also likely to bring down the overall price volatility of the coin. Pre-mined coins are necessarily not unreliable, as Ripple has shown us over the past year.
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What Is NEO?
The NEO coin is associated with the NEO blockchain, a decentralized platform for blockchain smart contracts, dApps and more.
According to their official website:
“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”.”
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Is NEO Coin Mineable?
After having understood what mineable and pre-mined coins are, you are still wondering: is the NEO Coin mineable?
Well no, NEO coin was pre-mined by the developers, with the maximum supply being fixed at 100000000 NEO.
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