NEO Market Report May 28 - June 10: Major Update to Consensus Protocol Reduces Network Instability
- By Pierre-Alexandre
June 11th, 2019
Although NEO price remains volatile in the last two week, an important update to its dBFT consensus mechanism ensure higher network stability and performance.
Summary
- Overall Price Movement
- NEO’s Latest Update to Consensus Mechanism
- NEO Market Report Using Omenics’ Sentscore
1. Overall Price Movement
The ‘smart economy’ digital currency NEO is making interesting progress relating to the development of its platform.
Over the last two weeks, the price movements of NEO token has remained largely volatile and has currently settled just below $12. At the press time, NEO is trading at a price of $11.91 with a market cap of $842 million.
The NEO blockchain platform is all set for its NEO 3.0 upgrade scheduled to take place by 2020. Recently, the platform updated its Byzantine Fault Tolerance (dBFT) consensus mechanism which reduces instability and makes the network more robust.
NEO’s Latest Update to the Consensus Mechanism
The NEO blockchain network employs the Byzantine Fault Tolerance (dBFT) consensus mechanism that ensures that no forks can be made to the NEO blockchain and that the transactions are irreversible.
However, since September 2018, the NEO blockchain was experiencing a considerable downtime and need for network maintenance which considerably impacted the running of decentralized applications. This resulted in further instability of the NEO network.
Last week, the NEO developers introduced an important update to the dBFT consensus protocol thereby simultaneously updating its mainnet consensus nodes. According to NEO, Version 2.0 of dBFT will “guarantee immediate transaction finality and includes a recovery method to help failed nodes on the NEO network get back online with minimal disruption”.
NEO co-founder Erik Zhang notes that the update will have more strict finality. Besides, users need to wait only for one 15 seconds confirmation to prevent double-spending and ensure the irreversibility of transactions. Zhang notes that this will be very suitable for financial applications.
The NEO 3.0 upgrade is scheduled for the next year which plans to introduce a completely new blockchain. However, before this migration, users will need to swap their tokens.
However, speaking to CoinDesk, Zhang said that this token swapping process won’t require users’ KYC details, instead, the NEO Foundation will just destroy the old token assets while airdropping new tokens to the designated wallet address.
NEO Market Report Using Omenics’ Sentscore
The Omenics’s Sentscore chart shows that the overall market sentiment around NEO has remained “neutral” over the last two weeks. Although the chart shows a monetary slip of the Sentscore in the “negative” zone below 4, it has managed to recover back in the “neutral” zone.
On the other hand, the news sentiment has dropped significantly from the “positive” region above 6 and going into the “negative” region below 4. Off lately, the news sentiment has shown an upward momentum and is back in the “neutral” zone:
The social sentiment has been oscillating with the NEO price movements between the “neutral” and “negative” zones. The NEO social sentiment chart is currently moving upward towards the “positive” region:
The buzz for NEO oscillates in the neutral zone between 4-6:
The technical chart is showing a significant upward movement while recovering from the “very negative” region to now into the “neutral” trend. It indicates that the bullish sentiment is growing around NEO:
By Pierre-Alexandre
Pierre-Alexandre is passionate about new technologies and innovation. After several years of experience in software and innovation agencies, he wanted to go all in on the blockchain revolution and co-founded Omenics.
