What Is Gas?
GAS (also called NeoGas) is the operational token powering the Neo ecosystem, a Chinese project that was rebranded from AntShares. Neo itself is a platform for combining real and virtual economies. The idea of the project was to create a government-compliant project to solve the problem of digital identification. GAS focuses on smart contracts and acts as a means of paying fees for processing transactions.
On the platform, each block generates 8 units of GAS every 15-20 seconds and 100 million will be issued in total, which are proportionally distributed among the NEO coin holders. NEO developers say the maximum amount won’t be generated for the next 22 years. NEO holders can also keep their NEO coins in private wallets in order to be able to claim GAS.
Pros and Cons of Gas
Advantages of GAS token
The rebranding earned GAS much credibility and it currently holds a place within the top-400 cryptocurrencies, according to CoinMarketCap. NEO platform's main focus is on assets, digital identity, and other future features, which differentiates it from Ethereum and attracts people to use GAS as an operational token. GAS token is also presented on a vast number of exchanges.
Disadvantages of GAS token
The price of the GAS token fluctuates majorly depending on the success of the Neo project itself and the latter still has competitors like Ethereum which it goes head to head with. The project’s goal, for now, is to gain superiority in its field and attract enough users to do so. Since GAS positions itself as a government-compliant token, its future relies heavily on the Chinese regulations regarding blockchain technology. Since it is also an operational token, GAS is not the most preferable investment opportunity and there’s little use for it outside of the NEO ecosystem.