22 April 2018

What is GAS and what GAS used for? – NEO blockchain ecosystem

NEO GAS

NEO’s Token

NEO is offering two types of token.

⦁ NEO: modified from Antshares (ANS)
⦁ GAS: modified from Antcoins (ANC)

NEO Token – NEO token is usually an investment token of NEO blockchain and more likely called as management token.

WHAT is GAS?

GAS or NeoGAS is also a token designed by NEO blockchain network. Normally it is called as a by-product of NEO platform because of stores NEO and generates GAS reward on per NEO. So logically NEO is working behind the scene with another title “GAS”.

“GAS is known as an operational token which fuels to smart contract token”

China’s first open source blockchain platform NEO was previously called as Antshares. They are aimed to make the digital community much more safe and reliable for future. By seeing the future needs and a high boost in the digital economy – digital identity, digital assets, and smart contracts are the main basis of NEO platform. NEO assumes that exchange of goods must be easier for a reliable and secure exchange.

When we look at GAS token; it has been advertised to be mined for trade. So, whenever a smart contract is activated; it must be tracked and verified by blockchain technology.

How to calculate GAS?

Users who already have NEO can calculate their GAS on the website NeoToGas.com by simply entering the number of NEO you own. So, everyone who owns or buys NEO will automatically be rewarded by GAS, but it not be transferred directly to your wallet until you claim it.

How GAS is generated?

For all 100,000,000 NEO, total 8 Gas is generated. These 8 GAS are then divided and transferred to all NEO holders (block of 100,000,000). Whenever a new block is generated a number of GAS are generated along with and distributed. After every 15-20 second a block is generated. As in above-stated image; two calculations are shown.

Theory Calculation: As name shows, this calculation is based on official published white papers
Actual Calculation: Whereas actual calculation is on the basis of actual block generation which depends on current time & rate. That is the reason why actual calculations are different than theory details.

Because GAS token is the one who powers NEO network, so it directly values the following key features of NEO blockchain platforms:

• Digital assets
• Digital Identity
• NeoContracts

GAS usage:

People who have their apps up and running are required to make payment through GAS and which at the end goes back to NEO holders in form of newly generated GAS. In contrast to NEO GAS is aimed to keep them in less circulation until both have the same ratio till 22 years of time span.

⦁ Payments like DApps registrations or other transaction for smart contracts
⦁ Can be used as incentivizing feature

For NEO transactions NeoGas works as proof-of-work, which means NEO trades must be accompanied by NeoGas. So, NeoGas is a requirement when someone wishes to fulfill a smart contract or make any transaction on the network.

GAS dividends the NEO value which users can use to deploy or run smart contact on the network with the condition of holding NEO in your private wallet. The payments which are made through GAS are tracked by bookkeepers to accumulate the average contribution of every activity. Since the value of GAS is directly dependent on NEO; it is expected a great boost in value by mid of 2018.

Other key Protocols of NEO ecosystem
NeoX: it allows transactions to other blockchains by providing cross-chain interoperability.
NeoFS: Protocol for large files distribution on the network
NeoQS: Security protocol for cryptographic techniques

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