NEO and STELLAR: Two sides of the same coin?

At first glance, NEO and Stellar appear to be very different cryptocurrencies. NEO is challenging Ethereum's dominance over the digital dApp market while Stellar is building brand new infrastructure to improve the exchange of digital and fiat assets.

With a closer look, it's clear that NEO and Stellar actually have quite a lot in common! Their blockchain technologies and long-term visions are extremely similar.

Let's peek under the hood of both platforms and take a look at the big picture.

Uncanny similarities

• Distributed node systems
  Both cryptocurrencies are distributed platforms, not completely decentralized like Ethereum. The tradeoff allows for vastly higher throughput/transactions per second.

• Byzantine Fault Tolerance
  NEO and Stellar are the first major cryptocurrencies to use BFT to achieve network consensus. Ethereum will implement BFT with the launch of Casper later this year.

• Shared value propositions
  Both platforms require the use of a native bridge asset in order to transact digital assets with each other and fiat assets. (NEO GAS and Stellar Lumens)

• Large, undistributed supplies
  About 50% of NEO's total supply of NEO and GAS is undistributed while nearly 80% of Stellar's native asset, XLM, sits out of circulation.

Key differences

• Native currencies
  The Stellar platform utilises a single native currency, Lumens (XLM). NEO is split into two native currencies. NEO essentially grants the holder a share in the platform, whereas GAS is required in order to use the NEO platform.

• Target markets
  It is no secret that NEO is aimed at the Chinese market. NEO has ties to OnChain, a company who has worked with Chinese governments on blockchain applications and regulations. On the flip side, Stellar is working directly with western corporations and banks to remove the friction between digital and fiat currencies.

The upshot

Both NEO and Stellar have essentially the same end-goal: the creation of a digital economy along with the onboarding of the existing fiat-based economy. Both utilize similar distributed technologies in order to provide the speed and scale necessary to do so. Both have incredibly large, undistributed supplies aimed at enticing governments and corporate powers.

Even though they share similar goals, I believe that both platforms have the tools and backing to succeed. With the support of China's government, NEO will become China's regulated entry point into digital currency. With the support of western banks and corporations, Stellar will connect and regulate the trade of digital currency with the west's financial platforms.

NEO versus Stellar is a question of East versus West. I believe that both have a bright future. They're both poised to become the backbone trading currencies in their respective markets.