How does NEO work?

NEO is a blockchain-based platform that enables the development of digital assets and smart contracts.

It is an open-source, decentralized platform that uses a consensus mechanism called Delegated Byzantine Fault Tolerance (dBFT) to secure its network. NEO is designed to be an efficient, scalable, and secure platform for the development of distributed applications (dApps). NEO works by allowing users to create digital assets on its blockchain.

These digital assets can represent real-world assets such as stocks, bonds, and other financial instruments. Smart contracts are also created on the NEO blockchain. Smart contracts are self-executing contracts that allow users to automate transactions without the need for a third party or intermediary.

The NEO blockchain is secured by a consensus mechanism called Delegated Byzantine Fault Tolerance (dBFT). This consensus mechanism allows users to vote on which nodes should be responsible for validating transactions on the network. The nodes with the most votes become consensus nodes and are responsible for verifying transactions and maintaining the integrity of the network.

In addition to its consensus mechanism, NEO also utilizes two tokens: NEO and GAS. NEO tokens are used to create digital assets and smart contracts on the network while GAS tokens are used as fuel for running smart contracts on the network. Both tokens can be bought or sold on cryptocurrency exchanges or held in wallets like any other cryptocurrency.