Why One Company Switched from Ethereum to NEO

April 14, 2018

We always keep one eye on the industry and in following the journey of a company called ‘Narrative’, Quantaloop has equally seen this for the future advancements in blockchain technology and we agree with what we are hearing from their Founder, Ted O’Neill in his Medium Block. Ted is the Founder of Narrative and Social Strata and here is a summary of thought highlights for the future of this emerging technology in a blog post. We love what this company is doing.

  • They going to require KYC (“Know Your Customer”) information for all Token Sale registrants.
  • Minimum contribution to gain Founder status is now 60 NEO (previously 10 ETH), which is a lower barrier to entry, based on current market prices. Founder status is very interesting from Narrative and is quite a big deal. The full description article about it here +
    • Any anyone who contributes at least 6o NEO during the Narrative + token sale will be granted “Founder” status, and with it earn some pretty substantial perks.To qualify as a Founder, contribute at least 60 NEO in total during the Narrative Token Sale. Then, when the network launches, register your account using the same email address you used for the Token Sale so we can automatically grant you Founder’s rights. It’s that simple. According to the post…
      • First Dibs on Niches: Niches are valuable real estate in Narrative. They are the unique subjects that users post to. Think “Los Angeles Lakers” or “World of Warcraft”, etc. And each niche has an owner, someone who purchases it (just like a domain) and shares in the revenue earned by the content it contains. Each Network Rewards payout period, 10% of the rewards are paid to these niche owners.When the network launches, we will give all Founders a 48-hour head start on reserving/purchasing new niches (niches are unique subject areas that any member can post to).
      • Lifetime Activity Points Bonus: Members accrue activity points as they do things in the network (like post new content, comment, vote, etc.) And Narrative rewards all participants by paying Network Rewards to users based on their Activity Point totals. The more you have, the higher the payout.
      •  Exclusive Access To Our Team During Development Phase We’ll be setting up a private space online after the Token Sale ends and this area will only be accessible by Founders. You will get sneak peaks at new developments and overall platform development.

The article is called “Big News: KYC and Our Switch to NEO Why we are switching blockchains. Source: +

  • Ethereum was the King Kong of blockchain development platforms. As for April 2018, it still is, in terms market cap and overall usage of smart contracts. But they witnessed the growing pains of Ethereum- transaction bottlenecks, high transaction fees, and muddied enhancement plans.
    • Blockchain Scalability: Ethereum can process 15 transactions per second, while NEO can handle up to 10,000 per second.
    • Transaction Costs: Currently, NEO charges no transaction fees.
    • More Flexible Software Development Environment: Ethereum, developers must use Solidity, its proprietary programming language. NEO supports most of the established programming languages, including Java, C#, and Python. This will reduce training overhead as we add new developers to the team.
    • Consensus Method:  preference i the dBFT consensus method employed by NEO over the Proof of Work model used by Ethereum which they believe will lead to more overall stability as changes are made to NEO in the future, because it is less prone to contentious forks than Ethereum is.
    • Quantum Computer Resistant – higher level of security: Blockchain is only as secure as its cryptography. The next wave in computing is so-called “quantum computers”, which can solve complex problems that are not possible now. While no one knows when such computers will be viable, it will happen and perhaps sooner than we think. NEO utilizes a cryptographic system that will prevent quantum computers from breaking its codes. Ethereum and most other blockchain projects are not there yet.
    • Token Sale Experience: NEP-5 is essentially the equivalent of Ethereum’ s ERC-20 protocol. Influential NEO developers, City of Zion, even released an awesome set of token/crowdsale libraries for use by the community. With Ethereum, anyone can launch their own token at virtually no cost. This has led to a flood of projects, many of them scurrilous, because the initial entry cost is so low. One thing we like about NEO, on the other hand, is that there is a significant system fee for deploying a new token. Currently, the fee is over $25,000. While that is far from an exorbitant amount of money, it does mean that someone has to have at least some skin in the game to create a new token on NEO.

New KYC/AML Requirements For Token Sale – Reducing regulatory compliance risk by requiring KYC style info

“As we have been in the process of setting things up from an organizational standpoint, we have come to learn that if we do not prove that the funds that we collect from the Token Sale are not sourced from illegal activities then we may have difficulty doing basic things like setting up a bank account. Indeed, many other Token Sale projects are now requiring KYC information from contributions for this very reason…

  • Asking for the following KYC information:

    • First Name
    • Last Name
    • Date of Birth
    • Phone Number
    • Country of Citizenship
    • Scan of Passport or Other National Identity Card
    • Selfie

Token Sale Process Changes – Learnings

  • Consolidating down to to two phases- Private Pre-Sale and Public Sale from 3 distinct sale phases- private pre-sale, public pre-sale, and public main sale.
  • Private pre-sale: The discount is actually slightly better than before — 25% off of the Public Sale rate.
  • Rewarding those that contribute early for the Public Sale, so if you contribute on Day 1 of Public Sale you will receive a 10% discount, and if you contribute on Day 2 you will receive a 5% discount.
  • Transparency: the sale prices are fixed, everyone clearly sees how many tokens they are purchasing.