Again, in the ‘non-techy’ spirit, I will be drifting a lil’ to explain some concepts that will help you understand the ”smartness’ of NEO’s economy.
In the GAS protocol, GAS is mined automatically via a set algorithm and then redistributed to all NEO holders.
But some holders of NEO have not the inkling of an idea of how the distribution is done and who Nodekeepers are.
In the NEO blockchain, we have Nodekeepers(NKs) or Bookkeepers as formerly called. NKs are the validators of the NEO blockchain transaction.
I will explain how the NKs are gotten using the diagram below.
The NKs(Delegates) are selected by the NEO holders and from the selected Delegates, a Delegate Leader is randomly picked (who adds the new block confirmed by all NKs).
These NKs(delegate leader + delegates) have the function of validating blockchain transactions and setting transaction fees. The transaction fees are paid in GAS and they are redistributed back to the NKs.
But hold up:
(a). If the NKs get to set the transaction fees, can’t they just increase the fees in order to gain more?
(b). And you just said that the GAS from transaction fees goes to the NKs, from whence cometh the ones NEO holders gain?
To answer the first question(a), the NKs will be chasing away investors from the NEO blockchain if the fees are high. So the transaction fees are kept at the barest minimum to attract companies to invest in NEO. Besides, NEO holders can vote out any NK that increases the fees.
But won’t that be a case of ‘monkey dey work, baboon dey chop’ on the part of the NKs since they will barely make anything from the transaction fees?
I will revert back to this question after providing an answer to the other question.
To answer the (b) question above, the GAS distributed to the NEO holders cometh from the GAS spent by companies and decentralized applications(dApps) on smart contracts registration and validation.
So the more companies that use the NEO blockchain, the more GAS dividends will be redistributed to the holders of NEO.
Now back to the question in bold: The NKs cannot be working in vain; they have to get something for their troubles. And if you’ve not figured it out already, the NKs are persons who own/hodl a huge amount of NEO.
Since they will be earning passive income (from the GAS redistributed back to NEO holders), they just go ahead to promote the NEO blockchain even though they might earn close to nothing from transaction fees.
So, NEO’s concept is unique in the sense that everyone works for a common goal: The growth of its Blockchain.
An entirely Smart Economy indeed!
I will now discuss the wallets where you can store your tokens safely.
See ya in the next phase!
NEO and GAS token are stored in crypto wallets that come in different categories. Most dedicated NEO wallet allows you to claim GAS while holding NEO but some do not especially wallets offered by exchanges.
The best wallets include:
- Hardware wallets
- Desktop/ Mobile wallets
- Web wallets
- Exchanges wallets
- Paper wallets
- Bitfi: This ‘unhackable’ wallet has the capacity to store all cryptocurrencies and tokens. Bitfi Knox wallets cost $120.
- Ledger: Hardware wallets are the most secure place to store your NEO tokens. In Ledger wallets(Nano S and Nano X), you can store your NEO and other cryptos offline. It costs $59 — $119.
- Atomic: Atomic wallet that supports 300+ cryptocurrency assets. It uses Atomic Swap technology for free exchange between cryptocurrencies. It is available for Windows, Mac OS, Linux, and Android.
- Exodus: This is a software NEO wallet with a beautifully designed user interface. In addition to NEO, Exodus supports more than 100+ crypto assets. Available for Windows, macOS, iOS, and Android.
- NEO GUI: The official wallet NEO Desktop Wallet is a GUI desktop wallet, but it is only available for windows. This is a full node wallet which means that you will download the complete NEO blockchain to your machine, which could take a while.
- NEON Wallet: The NEON wallet has all the necessary features, as it can hold NEO and GAS while allowing users to send and receive them. It is available for Windows, Mac, and Linux. The wallet allows users to claim GAS if they’re holding NEO.
- Coinomi: Coinomi is a mobile wallet available on Android and recently on desktop and iOS. It supports NEO and 1000+ cryptocurrencies and tokens.
- NEO Tracker Wallet: The NEO Tracker wallet is developed by NEO Tracker. It is an open-source web wallet, offering both ease and functionality. Users can send, receive and store both NEO and GAS. It also allows its users to claim GAS if they’re holding NEO.
These are cryptocurrencies exchange where you can store NEO.
You can exchange other cryptos for NEO on these platforms as well as store them (although not advised).
The paper wallet is an alternative to the hardware wallet. This is because unlike the hardware wallet, you don’t buy it, you simply print it.
You can store NEO and GAS in the paper wallet but you cannot claim GAS.
You can download a paper wallet from ANSY.
And that’s it about the best wallets for this coin and the end of this phase too.
Now that you are well equipped with the knowledge of the top wallets for your NEO tokens(just like a builder first secures the land before thinking of starting up building), I will be discussing the exchanges where you can buy/sell its tokens next.
Just stay with me.