The Complete Guide to GAS Coin: The Core Fuel of the NEO Ecosystem
Hello! Today, we will take a closer look at GAS coin. I will explain it in a friendly way so that everyone, from those who are new to the cryptocurrency market to those who have investment experience, can understand. 😊
Introduction to GAS coin and basic concepts
GAS is a core utility token used in the NEO blockchain ecosystem. Many people have a misconception that NEO is an independent blockchain platform separate from Ethereum. Developed in China, NEO is called the 'Chinese Ethereum' and is a powerful platform that supports the development of smart contracts and decentralized applications (dApps).
To put it simply, just as a car needs gasoline to move, all transactions and operations on the NEO blockchain require gas. All computational operations that occur on the NEO network, such as deploying smart contracts, transferring tokens, and using dApps, incur gas fees.
💡 Good to know: NEO and gas have different roles. NEO is a governance token and has strong characteristics of an investment asset, and GAS is the fuel required for the actual operation of the network.
History and development of GAS coin
To properly understand the history of GAS, we must look at the beginning of the NEO project. In 2014, Chinese developers Da Hongfei and Erik Zhang started the project under the name AntShares. At that time, as the Chinese government's interest in blockchain increased, the need to develop its own blockchain platform arose in China.
2017 was a historic year for the NEO project. AntShares changed its brand to NEO, and at the same time, the token economy was completely redesigned. At this time, GAS was separated into an independent token, which became its current form. Interestingly, a system was introduced where users holding NEO could automatically receive GAS as a reward, which was a very innovative idea at the time.
From 2018 to 2020, the foundation of the NEO ecosystem was established. As various development tools were released and the developer community was formed, actual use cases for GAS began to increase. In particular, after the DeFi boom in 2020, the demand for GAS increased as financial applications based on NEO emerged.
How GAS Coins Work and Technical Features
To understand how GAS works, we need to first look at NEO's unique consensus algorithm. NEO uses a consensus mechanism called Delegated Byzantine Fault Tolerance (dBFT), which is different from the traditional Proof of Work (PoW) or Proof of Stake (PoS).
In the dBFT system, NEO token holders elect consensus nodes, which then validate transactions on the network. During this process, gas is generated and distributed to NEO holders every time a new block is created. Currently, a new block is created approximately every 15-20 seconds, and gas rewards are paid out each time.
🔧 Technical Details: The gas generation rate was initially 8 GAS per block, but has decreased by 1 GAS every year, and is now quite low. This is designed to increase the scarcity of gas and protect its long-term value.
The amount of gas required to execute a transaction on the NEO network varies depending on the complexity of the operation. Simple token transfers require a small amount of gas, while complex smart contracts or large data storage operations consume more gas. This dynamic pricing system serves to increase the efficiency of the network and prevent spam transactions.
Various uses and applications of GAS coins
The scope of GAS utilization is considerably wider than simply paying transaction fees. First of all, the most basic use is to pay fees for all transactions on the NEO network. GAS is also required when sending NEO tokens to another wallet or trading NEP-5 tokens (NEO's token standard).
It has an even more important meaning for developers. Deploying a smart contract on the NEO blockchain requires a significant amount of gas. Depending on the complexity and size of the contract, gas can cost tens to hundreds of dollars. Additionally, additional gas is consumed each time a smart contract is executed, so dApp developers must always ensure that they have enough gas.
Recently, it has also been increasingly used in DeFi protocols. Gas is also required when swapping tokens or providing liquidity on NEO-based decentralized exchanges. Some protocols also offer the ability to stake GAS to earn additional income.
💰 Profit-generating tip: Many investors use the strategy of holding NEO for a long period of time, accumulating the automatically generated GAS, and selling it when the GAS price rises.
Exchanges where GAS (GAS) coins can be traded and how to purchase them
GAS is actively traded on major cryptocurrency exchanges around the world. Exchanges mainly used by Korean investors include Binance, Upbit, and Bithumb. Overseas exchanges include Huobi, KuCoin, and Gate.io.
There are several factors to consider when choosing an exchange. First, check if the trading volume is sufficient. If the trading volume is low, it may be difficult to trade at the desired price. Also, the exchange's security level, fee structure, and Korean language support are important considerations.
There are two main ways to purchase gas. The first is to purchase directly, which involves purchasing gas directly with KRW, Bitcoin, Ethereum, etc. The second is to purchase NEO and hold it for a long time while receiving gas that is automatically generated. The latter takes time, but it has the advantage of allowing you to simultaneously obtain the possibility of NEO's value increasing and continuous gas profits.
📊 Trading Strategy: The price of gas is highly correlated with the price of NEO, but sometimes it moves independently. The price is determined by the level of activity in the NEO ecosystem and the demand for gas, so don't judge NEO by its price alone.
Communities and information sources related to GAS coin
Accurate and timely information about GAS and NEO is the key to successful investment. Official sources of information include the official website and blog of the NEO Foundation. Here, you can find important information such as technical updates, partnership news, and roadmaps.
There are many active communities on social media. The official NEO group on Telegram is a place where various information and discussions take place in real time. The r/NEO subreddit on Reddit provides in-depth technical discussions and investment-related information.
The Korean community is also becoming more active. Korean investors share information on Naver Cafe and Discord servers. However, when referencing community information, it is important to always cross-check multiple sources and trust official announcements first.
You can also find analytical content about NEO and GAS on YouTube and podcasts. In particular, content about technical analysis and market outlook can be helpful in making investment decisions.
Guide to Choosing a Wallet for Safe Storage of GAS Coins
Safe storage of GAS is the first step to investing. Since GAS is a NEP-5 token, it can be stored in most wallets that support NEO. However, each wallet offers different features and security levels, so you should choose carefully.
Hardware wallets are recognized as the most secure storage method. The Ledger Nano S and Ledger Nano X support both NEO and GAS, and can protect your assets from hacking through offline storage. We strongly recommend using a hardware wallet, especially if you plan on making long-term investments.
Among software wallets, the NEON wallet is the most popular. It offers a user-friendly interface and the ability to easily claim gas that is automatically paid to NEO holders. The O3 wallet is also a good option for convenient use in a mobile environment.
⚠️ Security Precautions: Never store your wallet seed phrase (recovery phrase) online. It is recommended that you write it down on a piece of paper and store it in a safe place or in a vault. Losing your seed phrase can result in permanent loss of your assets.
We do not recommend using exchange wallets for long-term storage. Exchanges are at risk of losing access to your assets due to hacking or technical issues. Use the exchange only for short-term trading purposes, and use a personal wallet for long-term storage.
Things to know when investing in GAS coins
If you are considering investing in GAS, you must understand several important risk factors. First, GAS is highly dependent on the growth of the NEO ecosystem. As more projects are developed on the NEO platform and the number of users increases, the demand for GAS also increases, but in the opposite case, the value of GAS may decrease.
Second, you must consider regulatory risks. NEO is a project that started in China, and changes in the Chinese government's cryptocurrency policy can directly affect the project. In fact, there have been cases in the past where the prices of NEO and GAS fluctuated significantly due to China's strengthened cryptocurrency regulations.
Third, there are also technical risks. Blockchain technology is developing rapidly, and competing platforms continue to emerge. If NEO fails to maintain its technological edge or a better alternative emerges, the demand for GAS may decrease.
💡 Investment Strategy Tips: When investing in GAS, it is important to allocate only a certain percentage of the portfolio and maintain the principle of diversified investment. It is also a good strategy to use the dollar-cost averaging method (DCA) to mitigate market volatility.
Fourth, you need to understand market volatility. All cryptocurrencies, including GAS, show much higher volatility than traditional assets. Keep in mind that you can make big profits in a short period of time, but you can also suffer big losses.
Finally, you need to do enough research and study before investing. Make an investment decision after comprehensively analyzing NEO's technical features, roadmap, competitor analysis, market trends, etc. Investments based on rational and logical analysis are more important than emotional judgment.
GAS (GAS) coin is a utility token that plays a key role in the NEO ecosystem and is a good example of practical use of blockchain technology. The unique structure that allows you to automatically obtain GAS by holding NEO, as well as the fact that it plays an essential role in actual network operation, are the special values of GAS.
Cryptocurrency investment always carries high risks, but it can be a good investment opportunity with sufficient research and a careful approach. If you are considering investing in GAS, we recommend that you continuously monitor the development of the NEO ecosystem and approach it from a long-term perspective. We hope this has been helpful in your investment journey, and let's continue to watch the development of GAS and NEO together! 🚀
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