WHY PREFER NEP-5 OVER ERC 20 TOKENS IN LONG TERM?

Hello friends! You may be wondering what is inside this article that really needs to be considering right now. This is important not only from investment perspective but also from technical point of view.
As a crypto investor or follower for some time everybody has heard about these confusing words like ERC-20 or NEP-5 tokens. But who does actually knows about these technical terms that often used in crypto sphere from a decent amount of time period. Not everyone here is a technical expert that they have a better knowledge about cryptography, protocols, algorithms and hashing power. Most of the people are here because they want to earn some quick returns or a huge profit on their investments. Some people might have involved with this crypto world because they want to be a part of the future tech and early adopters. Some might have feeling it’s so exciting to invest in a new kind of asset class unlike those traditional investments. But as technology evolves everyone should have a better understanding of these technical terms as well. By which they can have a better control and right choice over their investment. In this article we will discuss about what actually these technical terms means. Also will discuss about their pros and cons and which one is the best for long term holding.

As we know that Bitcoin is the king of all crypto currencies. Due to its encryption, cryptographic security, anonymity, peer to peer transaction without any third party involvement, it is the most popular crypto among other crypto currencies in existence today. Bitcoin currently dominates approximately 42% of total crypto market capitalization. But there are some other coins also that are having a decent amount of share in total crypto market. Such as ETHEREUM, NEO, CARDANO, IOTA and many more. So what is the necessity of these new emerging altcoins? This is because there are some draw backs in Bitcoin's underlying technology. Such as less transactions per second, transaction cost, platform for developing other dapps using its code, are missing. So to overcome such missing applications of Bitcoin, other crypto projects emerged. In this way great projects like ETHEREUM or NEO platforms came into existence. This platform enables people to launch their own crypto projects. Also smart contracts, open source block chain that enables people to use this platform to launch their own crypto currencies, less transaction cost, Fast TPS (Transactions per second) are some key features that have made them a huge success.

In July 2015 Ethereum released as a hard forked project from Ethereum classic. Which completely revolutionize crypto industry with its unlimited functionality and features? A lots of projects then launched on Ethereum platform. Because of its multi functionality and flexibility. Programmers generally use SOLIDITY to code on ETHEREUM platform. ERC20 protocol generally is a set of rules that has used by many great projects. The token that are created using Ethereum block chain has their own total supply, total circulating supply, can be sent and received. It is also important to note that these tokens should have a name, contract address, public key, private key combination, decimal numbers and symbol then only it can be termed as an ERC20 token.

But as technology advances new opportunities and new possibilities are always emerging day by day. We are here because we believe in its underlying technology and peer to peer transaction and anonymity encryption etc. It is very hard to break its private key strings. For breaking into an address's private key we need more computational power which is not available currently.

But it is also important to notice that quantum computers which has more computational power then basic computers available today, will be able to decrypt it's private key when they became a reality. Not to worry, be relaxed for now as there is no such quantum computers have been developed yet. But one must understand that quantum computers will be a threat to crypto in future.
From transaction point of view there is a little draw back in ETHEREUM blockchain. It needs some gas as a transaction fee to be able to process a transaction which will be rewarded to miners those finds a new block successfully. Sometimes these transaction fees are higher even a small amount of token is to be sent from one address to another. Then there is no reward for holding Ethereum or its tokens in a wallet. For sending to any address you have to have some Ether in your account. Its transaction speed is less as it is currently limited to only 15 transactions per second. If it will be used worldwide as a currency then it’s not sufficient to process millions of transactions per second and that is a major drawback.

We have witnessed thousands of ICO's launched on Ethereum platform last year and this year also. 70-80 % or more than that turned out to be scams. They scammed many crypto investors by crowd funding and made an excuse later. So it is important to notice that a number of projects that have launched on Ethereum platform are not genuine. Because it is open source and anyone can create a new crypto project on it without any fees that is why some people mutualized it.

I am not saying that ETHEREUM is a bad project or inefficient, It is one of the greatest innovations in blockchain technology that have expanded the use cases of crypto in real world, Also it enabled some great projects to run on it successfully, but it have some miner draw backs that needs to be consider for investing in long term.

In the other hand there is another eco system that allows users to create their own crypto projects without any expertise on blockchain coding. NEO smart economy also allow users flexibility to use this platform for coding in many different languages such as C#, F#, Kotlin, Java, Python, Neo Virtual Machine etc. So there is no need to learn a new language. With any basic knowledge of programming languages mentioned above anyone can start coding on NEO blockchain. Also NEO developers are very supportive and they will help you in creating your own project. Last year NEP - 5 protocols added to NEO blockchain which means NEO ENHANCEMENT PROTOCOL. It is a platform that allows newly created smart contracts to run on it. The tokens or smart contracts that have created on NEO blockchain are the most genuine projects ever. As to launch a smart contract on NEO blockchain developers have to pay a fee of approximately 500 GAS tokens. This eliminates any fraudulent crypto projects and acts as a quality control for new smart contracts. ERC 20 and NEP 5 are protocols that are not much different from each other. There are many different things to consider NEP-5 protocol over ERC 20 protocol.
Such as...

TPS: - On NEO blockchain average time to find a new block is approximately 20 seconds. It can settle more than 1000 transactions per second in comparison with Ethereum's 15 transactions per second.

ZERO TRANSACTION COST: - In order to send a NEP-5 token on NEO blockchain it requires only a drop of gas which is equals to .00000001 GAS, completely negligible amount for a transaction to settle. In the other hand you have to pay a significant amount of Gas as a transaction fee to send any asset over ETHEREUM blockchain.

FREE GAS: - If you hold ETHEREUM in a compatible wallet then you will not be rewarded with extra Ether for holding it. But in the case of NEO it is totally different. If you hold NEO in a compatible wallet then you will earn some GAS by default as a passive income only for holding NEO. If in future it will be added that you have to pay a transaction fee for transferring any NEP-5 token or NEO itself then you will have already generated some passive income just by holding NEO in your wallet.

FLEXIBLE DEVELOPING PLATFORM: - NEO provides every user to use its platform for creating their own project or smart contract on it. It allows multiple languages for coding which is very useful for users who do not have a vast knowledge on different languages.

FUTURE READY: - As I have mentioned earlier in this article quantum computers are going to be a big threat to crypto encryption safety. But NEO is a kind of blockchain that is ahead of technology because it is quantum computer proof and it can’t be split or forked like other cryptos out there.

SECURE STORAGE FACILITY : - NEO can be store on Ledger Nano S multi crypto hardware wallet. It is very secure and hack proof even on a compromised system. NEO and other NEP-5 tokens are compatible to store for long term on Ledger.

SMART ECONOMY: - NEO provides smart economy platform where any MoUs or agreements are written on a distributed public ledger by using smart contracts. Which is fully transparent and user friendly. This agreement neither changeable nor any modification can be done to this which ensures trust over parties signing the agreement and the programmes will run exactly as per the smarts contract that has pre-defined to perform task.
There are number of new and exciting projects that are 100% genuine and launched on NEO BLOCKCHAIN. Some of them are my favorite because they have 1000X potential in upcoming future with totally new concepts. Such as ONTOLOGY, EFFECT.AI, CHINAPEX, NKN, ORBIS etc. and many more.

My humble opinion is you must consider this article and try google search for a better view of which project is better and future efficient. Thanks for reading my article...

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@bibekchandra