NEO (NEO) Jumps As It Enters Era Of Decentralization
NEO stormed into the top 10 rankings on CoinMarketCap after its price jumped by about 18 percent on July 4.
The price came about after the China-based crypto announced a move towards an era of decentralization.
Many of the platform’s critics have in the past been quick to point out that NEO was too centralized. NEO has had 7 nodes operated exclusively by the team.
However, things are set to change with a move that saw it elect a new consensus node.
As was expected, NEO prices surged in the aftermath of the news. The coin’s value has risen over the course of the last several hours beginning just before and picking up momentum after 21:00 (GMT +8) on July 4.
NEO/USD price surge
The crypto saw its value jump from a low of $36.92 to reach a high of $42.72. There was a sharp rise in prices from $39 to $42, although there did occur a slight pullback to a low of $41.
Another period of sustained buying saw its value spike once more to trade close to $43.
The spike in prices also saw its intraday trading volumes increase significantly over the course of the day.
Trading volumes have increased from a total of $171million worth of NEO coins traded in the early Asian hours to about $262 million.
The timely good news has seen the coin record higher gains of over 10 percent and over 39 percent in the last 24 hours and 7 days respectively (at time of writing). NEO now commands a market cap of over $2.7 billion.
NEO decentralization ushers in a new Era
Up until the time of the announcement, the project’s team operated all the 7nodes. But that has now changed with City of Zion being elected to run a new consensus node.
City of Zion (CoZ) is a global group of open-source developers who’ve been instrumental in developing the NEO ecosystem. What makes them a great node is that the group is completely independent of the NEO team.
By electing to introduce decentralization, NEO joins other public blockchains that have sought to strengthen one of the cryptocurrency’s pillars. To make it clear that the team was committed to the cause, it has unveiled a webpage to track its operational status.
This will include monitoring aspects of the blockchain like total nodes (both consensus and candidate), block time and block height.
Critics may still point out that having the City of Zion run a consensus node doesn’t really translate to instant decentralization because the other 6 nodes are still under the control of the NEO team.
That notion will likely persist until more independent nodes are added. NEO seems to be aware of this fact and has set out a roadmap that outlines the process towards true decentralization.
According to “Timeline of NEO Decentralization Process”, new nodes will be added by the end of 2018.
They include KPN, a telecommunications provider based in the Netherlands; and Fenbushi Capital, a behemoth when it comes to blockchain investment.
The platform hopes to complete the process by allowing the community to vote for all the consensus nodes in 2019.
NEO’s future looks set to get even brighter if it completes the decentralization process. Its vision of aiding the development of a smart economy looks more of a possibility for now.