NEO Co-Founder: Ethereum Has 'Strongest Community of Developers'

Da Hongfei, the co-founder of NEO, a leading blockchain-based platform for developing smart contract-enabled decentralized applications (dApps), recently revealed that he believes the “whole world will [eventually] become digital.”

Hongfei, a self-taught computer programmer, pointed out that credit cards were never widely adopted in China. However, mobile payment apps such as AliPay and WeChatPay are used by millions of Chinese citizens because “it is much more convenient”, Hongfei mentioned. His comments came during an interview with Bitcoinist at NEO’s DevCon event - which was held in Seattle, Washington (on February 16th-17th).

Explaining how distributed ledger technology (DLT) was gradually adopted by financial institutions, Hongfei remarked: 

After 2014, bankers realized that some geeks invented a protocol that could transfer value across countries in a few minutes. So they are curious about the technology and they abstracted it and called it blockchain.

Vitalik Buterin Coined The Term Distributed Autonomous Organization (DAO)?

In 2016, many people realized that blockchain technology could be used to facilitate “collaboration between individuals” and other entities in general, Hongfei said. It was also during this time that developers “invented or borrowed words like decentralized autonomous company (DAC)” - which was later changed to DAO (decentralized autonomous organization) by Ethereum co-founder Vitalik Buterin, the NEO co-founder revealed.

When more people began working on DAOs, Hongfei began to “realize” that blockchain “was a new institutional technology.” He explained that blockchain technology will evolve in a manner that will be somewhat similar to how the internet developed. According to the South China University of Technology graduate, most of the implementation details will be abstracted away from the end-user and even software architects. This should allow application developers to focus more on creating solutions, rather than spending time learning about technical details that are not related to the software they’re trying to create.

Per the NEO co-founder:

[Blockchain development will be divided] into different layers. [For example,] TCP/IP is at the bottom and HTTP protocol is on top of TCP/IP. If you are building an internet application, you don’t have to bother about TCP/IP these days, you don’t even need to worry about HTTP. You have different middle layers to build on top of that. So blockchain will take a similar road.

Acknowledging that most dApps currently deployed have been built on top of layer one, or the base layer of blockchain networks, Hongfei believes that “in the future, there will be different layers” - especially “a lot of layer 2 solutions.” In order to launch applications on layer 2 or layer 3 networks, Hongfei recommended creating “native support” or native development environments.

Only Smart Contract-Based Assets To Be Supported On NEO 3.0

Hongfei, who’s also the founder on OnChain, a blockchain development firm, noted that NEO currently has “some complicated, global assets” which are UTXO (unspent transaction output)-based and NEO also has “smart contracts assets.” NEO’s developers are planning to “unify” both asset types so that “there will be no more UTXO assets”, Hongfei said. In the future, the NEO platform will only support issuing assets “with smart contracts”, the crypto pioneer explained.

Interestingly, Hongfei thinks “Ethereum currently has the strongest community of developers.”

He said that Ethereum’s development team is “like the go-to solution” and that “if you want to [learn] how to [write proper] smart contracts, [then] you will probably do it on Ethereum.” However, the “blockchain infrastructure” of today is “not ready for mass adoption” - as we need to work on developing second and third layer solutions, Hongfei argued.

Neutral Dollar Stablecoin Founder Explains How to Access Shared Liquidity Pools

Matthew Branton, the Founder and Chief Technology Officer at Neutral, a smart contract-enabled platform that provides various financial instruments for the cryptocurrency industry, has predicted that stablecoins will have “a tremendous impact on the future economy.”

Branton, a computer science graduate from Lafayette College, told CryptoGlobe that stablecoins offer “access to a digital currency that can enable payments, credit, and banking services which many people don't have access to.”

According to Branton:

[Stablecoins are] innovative digital assets [that] will help lower the barriers for [major financial] applications and [they will also] help people transact in value [systems] they are familiar with, such as the USD [and other fiat currencies.]

“Cultivating Healthy Dialogue to Help Build Wider Understanding” of Stablecoin Market

In response to a question about how the traditional financial system could be upgraded (in terms of both the regulatory framework and technological infrastructure) so that it can allow users to legally acquire stablecoins and other digital assets, Branton remarked:

In order to ensure that regulation evolves in tandem with advances in financial technology (FinTech), dialogue between regulators and innovators is essential. Cultivating a healthy dialogue among fintech project [developers], stakeholders and regulators of traditional finance will help build wider understanding of the benefits of stablecoins, and in turn accelerate the creation of regulation and infrastructure that accommodates stablecoins in the global economy.

Neutral Dollar Aims to Provide “Diversified Exposure” to Investors at “Lower Risk”

When asked what unique value proposition the Neutral Dollar stablecoin offers, which may not currently be available in the cryptoasset market, and how this is supposed to be relevant and useful, Branton said:

The Neutral dollar provides diversified exposure, presenting a lower risk alternative against other stablecoins (which contrary to their name, may not exhibit stability) in the market. In addition, the Neutral Dollar functions in a way that creates an additional layer that allows for shared liquidity amongst constituents stablecoins, a property that isn't inherent in their design. Given the fragmented and nascent nature of the crypto market structure right now, this solution is particularly relevant and unique in the marketplace.

Responding to a question about the potential impact he expects his company’s line of products to have on the cryptoasset market, Branton stated:

The impact of our products is to not only give end-users a better means to invest, trade, or hedge cryptoassets, but to also facilitate liquidity and engage in better portfolio management practices through our products. In order for the digital asset space to reach its full potential, the industry needs reliable financial instruments that take us beyond the limitations of fiat currencies, while also upholding the highest standards in stability and transparency. In the longer term, we plan to explore the launch of a suite of financial products to improve market infrastructure and activity.

Digital Asset Security Is “Quite Solid”

Commenting on how we can ensure the security of our assets, including stablecoins users might acquire, since the technology used to transact in these assets is highly technical, Branton noted:

Given that collateral is on-chain and smart contract based, security is decentralized in nature and quite solid. Asset safety is still the responsibility of the end-user — crypto-storage extends beyond the case of stablecoins and Neutral Dollar itself.

He added: “Ultimately, once a Neutral Dollar token is deployed on smart contract networks, it will function completely autonomously. The math and algorithms that govern its operation will operate independently of a centralized entity and in a transparent manner, and provide continuous services on the network.”