NEO's strategy of 'pragmatic' centralization

Publié le by Cryptoslate | Publié le

The NEO Foundation and its related organizations-for-profit NEO Global Capital and non-profit NEO Global Development-hold enormous power.

To date, the NEO Foundation has spent 5.85 million NEO to fund development, stimulate its ecosystem, and invest in other blockchain projects.

Development around NEO. Another part of the organization's strategy is funding core protocol and tooling development around the NEO blockchain platform.

The NEO Foundation reviews all proposals and selects candidates based on their "Qualifications and potential contributions to the NEO ecosystem." Successful applicants will then be voted in as a consensus node on the NEO TestNet.

Given these circumstances, for example, if the NEO Foundation could sell its entire treasury while modestly pushing down NEO's price, then that would be a success for the company but a loss for investors.

Centralization of the NEO blockchain raises serious questions around censorship resilience.

In contrast, if the Communist Party of China put pressure on Da Hongfei to stop gambling on the NEO platform would he have to capitulate? Whether NEO could survive external pressure on its executives or nodes is still uncertain.

If NEO isn't sufficiently decentralized to resist censorship then what makes it competitive relative to incumbents? High performance is easily achievable on centralized systems, so for NEO to remain competitive it needs to continue making strides toward decentralization.

NEO's decentralization efforts are scheduled to pick up after NEO3 is launched, tentatively scheduled for Q2 2020.A strategy of centralization.

In two separate interview with CryptoSlate, Da Hongfei has iterated that centralization is a key part of NEO's strategy.

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