What is gas in cryptocurrency?


GAS is known as neo gas as well and is designed to take the control of the neo network. Neo has two different coins, which is NEO and NeoGas, also known as gas. Both cryptocurrencies have a limit of 100 million coins. Gas is used to control management’s rights to neo coins. For example, these rights include accounting checks and network parameter changes. Mining coins is included , but this feature is not carried out at the present.

Bookkeeping must be used each time when a smart contract is finished and verified by blockchain technology. Companies on the neo blockchain must spend gas running their applications on the neo system (such as smart contract registration fees), and the gas will be recycled to the neo holders and the newly generated gas. Therefore, as the neo network grows and uses more and more, the gas generated by neo will increase constantly.

The total number of coins in the circulation of gas will be less than neo, and will be significantly reduced in the first few years until gas and neo will enter the project in 1:1 proportion for 22 years. We may eventually need to purchase gas to send neo transactions, use products on our network, smart contracts, which may push us to buy more and create demand effectively and thus increase prices.

At the present, gas has no real purpose, there is no reason to own it except for speculation.





Asked on July 2, 2018 in Altcoin.
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