Flipside Daily Mover: NEO
A coin per day, making big moves
NEO Partners with Ontology for Cross-Chain Platform
July 25, 2019
NEO FCAS climbed 1.48% over the last 14 days. Fundamentals are up across the board, including a 9-point (1.08%) spike in Developer Behavior, 15-point (1.91%) rise in User Activity, and an 11-point (1.41%) ascension in Market Maturity. Price is down -19.14% over the same time period.
Why Can’t We Be Friends?
NEO is a leading open source, smart contract platform based in China. The team is building a “smart economy” by combining digital assets, digital identification, and smart contracts into a flexible blockchain framework. Their platform supports a dual token economy, where NEO is a governance token used to vote for consensus nodes (which create blocks and determine service fees), and GAS is used to pay these service fees.
On July 18th, NEO announced a partnership with Ontology to create a global cross-chain platform. The move will establish an interoperable protocol that functions without a native token or smart contract system. Moreover, the protocol is focused on being an easy-to-integrate foundational layer that expands cross-chain smart contract interactions for DApps and delivers “finality and atomicity” in cross-chain transactions. Fundamentals have been on the rise since the announcement, aided by yesterday’s reveal that Swisscom Blockchain has launched their self-sovereign identification (SSI) solution on top of NEO to build out the platform’s “decentralized identity network”.
🌶️ Hot Take
The partnership comes amidst a growing trend of interoperability in the space. Major projects such as Cosmos, Polkadot, and Metronome have all devised their own approaches to enabling cross-chain transactions that expand the scope of development and potential use cases for their integrated chains. The move by ONT and NEO (both of whom were designed with a focus on supporting DApp development on their platforms) is a strength-in-numbers approach meant to keep pace with other projects who were focused on interoperability from the start.
From a macro-perspective, we are seeing early signs of consolidation in the space. With the overall vision being to establish a next-generation internet, it is becoming increasingly apparent that cooperation and compatibility is the best road forward. Eventually, this cooperation could call into question the need for so many independent blockchain platforms, and lead to a marrying of projects under a single entity.
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