Through the use of APIs, NEX wants to integrate everything into a single web extension. If successful, users can use a single website to trade cross-chain (making it the first cross-chain browser extension) and fiat as well. The engine is also able to ‘batch’ matched orders back to the blockchain, improving scalability. The whitepaper claims that assuming a speed of 1,000 transactions per second, NEX could potentially execute over 100,000 trades per second on-chain. So at the moment the tradeoff that people face is between trust and performance.
- For cross-chain exchanges, since the engine is off-chain, it will be able to communicate with smart contracts on any number of chains.
- At the time of this writing, it is the 11th most valuable cryptocurrency with a market capitalization of about $5.5 billion.
- Reduced performance means a lack of capability to execute more complex trades as well as giving up arbitrage opportunities.
- With Neon Exchange’s new NEO NEP5 ICO template, the need to process refunds manually will be almost completely eliminated.
Now let’s dive into the configuration of the smart contract, in particular the name, symbol, ownership, supply and amount of tokens a participant gets for sending NEO or GAS. With a maximum of $25 million for its ICO, NEX is far from a ‘mega ICO.’ It doesn’t even have a Discord or Telegram group. There is a NEX subreddit but it is apparently unaffiliated with the official NEX team, and there have been warnings that it is a scam; it has since been made private. Yet, there is a good chance that the full 25 million will be sold out within the first round of the ICO.
ICO Drops is an independent ICO (Token Sale) database and is not affiliated with any ICO project or company. Our Interest Level does not constitute financial or investment advice. We publish guides, reviews and news on tech, cryptocurrency, Bitcoin, blockchain & privacy. Our content is updated regularly to keep our privacy-minded readers safe, informed & up to date. Out of the 50 million NEX tokens, 25 million will be made available for sale. There will be no private sales, and while Chinese citizens can participate, US citizens, despite NEX’s best efforts, will not be able to.
Starting a Private Network of the NEO Blockchain
We performed all the steps needed to run an ICO with the NEX ICO template. This step also compiles the Python code to NEO bytecode, producing a file with the name “ico_template.avm” (located in the template directory, next to the ico_template.py file). It seems that the NEX project is operating slightly behind its planned schedule. It’s already one month into the second quarter of 2018, yet a couple of milestones designated for the first quarter have yet to be achieved. NEX’s roadmap plans for the mainnet release and start of trading operations to begin in the third quarter, however, it looks like there’s a decent chance that it may fall behind schedule.
Once the trades are matched with the other party, they are signed off-chain and committed back on-chain to the user accounts. For cross-chain exchanges, since the engine is off-chain, it will be able to communicate with smart contracts on any number of chains. NEX is billed as a ‘high open banking api integration performance trade and payment platform’ that is built on the NEO blockchain. Its key value proposition is that it allows both cross chain exchanges and fiat-crypto exchanges. Crucially, it intends to achieve this while also delivering the highest standard of trading performance.
- Now we have a compiled smart contract, a private network of the blockchain running, and neo-python fully set up with a wallet with lots of NEO and GAS.
- In this case, the ICO smart contract has the hash 70b3f7098a9a3f2361a1f0c312e9842ec4ca6dc6, which we will need to use for all the method invocations.
- Clone the repository, setup a virtualenv and install the requirements.
- This is important for KYC procedures where user details must be verified in advance and assigned to a whitelisted wallet address.
The second key function enabled by the template is the ability to verify whitelisted addresses. This is important for KYC procedures where user details must be verified in advance and assigned to a whitelisted wallet address. Verified addresses will be eligible to participate in a token sale, whilst contributions from addresses that have not been verified will be rejected. The first is via a direct cut of fees across each token on the exchange. So if NEX is trading on NEO and GAS, the user will receive a proportional share of both.
Reduced performance means a lack of capability to execute more complex trades as well as giving up arbitrage opportunities. NEO, the smart contracts platform sometimes called the ‘Chinese Ethereum’ (as it is backed by the Chinese government), has been rising fast. At the time of this writing, it is the 11th most valuable cryptocurrency with a market capitalization of about $5.5 billion. This guide uses neo-python, therefore set that up as first step. Clone the repository, setup a virtualenv and install the requirements. The whole process is covered as a detailed step-by-step guide in the neo-python README.
Key to NEX’s performance promises is its unique off-chain matching engine. While NEX has yet to release technical specifics on its matching engine (its Github is still relatively empty), how to buy alt coins it has explained how this engine would work. The ICO smart contract has several methods, some of which have to be invoked by the owner and some which can be called by everyone.
Chain of Things
This post dives into the neo-ico-template of the Neon Exchange (NEX), and how to use it as an ICO developer to configure, compile, deploy and test the ICO smart contract. After all, how would a user know whether the engine is matching trades fairly? For one, NEX ensures that the engine never has access to the full balance of a user’s account; only active orders. Second, the deterministic algorithm that it uses to match trade will be made public. Third, NEX will also offer bounties for spotting errors in the engine. The way that NEX will allow users to use fiat currencies to enter into the exchange is through a partnership network with various financial institutions.
This led to many investors having NEO locked up and unable to resubmit their contribution after their error had been realised. Secondly, the overwhelming demand for RPX saw Red Pulse raise way above their intended target. While configuring and adapting the ICO template, it is immensely useful to continuously test the various methods. Neo-python offers built-in functionality to build the smart contract and test method invocations with custom parameters. Over the long term, NEX identifies a clear market need and has proposed an innovative solution for solving it. Because of this profit sharing model, NEX notes that its token will be registered as a security, beginning in Europe.
Some examples of highly rated ones that are also operational (NEX is still very much a work in progress at the moment) include IDEX, Stellar, and Waves. The advantages that NEX intends to offer over the current crop of decentralized exchanges are performance, usability, and the aforementioned capability to use fiat to enter the exchange. The final feature of the template is the implementation of NEP5 compliant methods that will be required for advanced token interaction needed by exchanges or other dApps.
What are NEX’s Short Term and Long Term Potential?
ICO Drops receives a fee for advertising certain token sales, in which case such listing will be designated accordingly. As it is with the entire concept of blockchain and decentralization in general, the problem with the decentralized model comes down to performance. One of the main advantages of centralization is efficiency and scalability; how to draw a beat this is a key reason why blockchain is still far from mainstream use. An oft-mentioned statistic is Ethereum’s 15 transactions per second compared to Visa’s 40,000 to 50,000 transactions per second. This will allow projects to avoid the issues that occurred during the RPX token sale, which required Red Pulse to process many manual refunds.
In this case, the ICO smart contract has the hash 70b3f7098a9a3f2361a1f0c312e9842ec4ca6dc6, which we will need to use for all the method invocations. You can confirm that the private network is running with “docker ps”. Alternatively you can also manually compile the Python smart contract code, you can read more about this in the template README. If you want to disable the KYC process, simply remove the KYC check at crowdsale.py#149 (“if not self.get_kyc_status(attachments.sender_addr, storage)”).
Holders of the NEX token will be allowed to share in the revenues generated by the fees charged on NEX. The minimum revenue share will be 25%, with the potential to be increased to 75% if a user decides to stake his or her NEX tokens for up to 2 years. Some solutions other decentralized exchanges implement to attempt to get around this include state channels and off-chain relay. Many think that NEO could eventually unseat Ethereum as the premier smart contracts platform, mainly due to scalability. Right now, Ethereum does only about 15 transactions per second whereas NEO has a theoretical limit (emphasis on theoretical) of 10,000 transactions per second. There are also questions concerning the amount of centralization involved in NEO’s smart contract compared to other blockchains, such as Ethereum and Bitcoin.
In the second method, the user can specify a preferred asset type, with NEX performing an automatic conversion. Unlike most blockchain projects nowadays, the NEX token will not be a utility token. Instead, the NEX token will function more as a stake in the entire NEX.
He also has over five years of experience in investment banking. With Neon Exchange’s new NEO NEP5 ICO template, the need to process refunds manually will be almost completely eliminated. The empty brackets mean that there are no arguments to pass for the deploy method. Set the script hash as value for the “owner” variable in mytoken.py#16.
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As for the fees themselves, NEX operates on the market maker/price taker model. Market makers will pay no fees while price takers pay a fee ranging from 0.13% to 0.25%, depending on trade volume. Another defining component of NEX is its web extension for improved usability.