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How to Claim GAS on NEO: Guide How to Earn Free GAS

  • Eduard Ezhov
    ⭐ Features

    The concept of GAS allows NEO users to earn a good passive income just by keeping their coins. Here are several ways to get free GAS


How to Claim GAS on NEO: Guide How to Earn Free GAS
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Contents

NEO is a Chinese Blockchain platform released in 2014. It was designed as a scalable and stable decentralized network for smart contracts and development. The main feature of NEO is decentralized applications, which can be made on different programming languages, including Javascript, C#, Python, Java, and Go. The core of NEO is written on C#.


An interesting fact about NEO is that the platform still works in China, where almost all cryptocurrencies and exchanges are forbidden. The Chinese government does not approve independent Blockchain technologies. That is why NEO cannot provide anonymous transactions. The team of developers is doing their best to comply with the Chinese jurisdiction, and this makes sense because China is a huge, not available for most competitors market.

NEO and Ethereum: what do they have in common?

As for technology, NEO is very similar to Ethereum. Both networks have smart contracts and decentralized apps as their main features. Ethereum was released in 2013, a year earlier than NEO. That is why many independent experts and journalists call NEO a Chinese clone of Ethereum.

However, it did not stop the NEO’s fast rise. It paid off a hundred times for the first investors. The price grew from less than $1 to $160 in 2017. Unfortunately, now it is only $16 because of a total reduction of the market.

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One more thing that Neo and Ethereum have in common is a special accessory coin for implementing transactions. In both platforms, it is called GAS.

What is the purpose of GAS?

A counting power of any network is restricted. It is not rational to provide free transactions in decentralized platforms as it will not bring any revenue. Every transaction must be paid for.

What is a transaction in NEO? Obviously, there are regular transactions which imply just sending money from one user to another. Things are getting more complicated when we are talking about decentralized apps.

DApps are literally bunches of code that any user can request. They are stored in Blockchain, and every time when the user requests it, the data is transmitted as a regular transaction.

The more complicated program the user requests, the more code has to be transmitted. Actually, anyone can design their own application and call it every time they need. Therefore, some issues have appeared.

If transactions were free, users would not think about rationality in their apps. For instance, someone could waste the network power just by writing such a code (it is pseudocode):

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If you are not familiar with programming at all, just believe that this code has no end and the program can be stopped only by special platform restrictions.

In order to prevent such situations, every line of code you call should be paid for. It is not a big price, but it is necessary to make users design both powerful and rational code. The currency used for transactions is called NEO. The currency used to pay for transactions is called GAS.

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How is GAS produced?

The algorithm for producing GAS is very simple. NEO tokens generate a certain number of the GAS coins depending on how many of them there are in the wallet. It is actually another way of mining. Here your success depends on the number of coins you keep, not on the computing power you have.

To put it simply, the more NEO tokens you keep in your wallet, the more GAS you will get as a reward. The method is based on Proof-of-Stake technology implemented in NEO for verifying transactions.

The amount of GAS is restricted as well as the number of NEO tokens. In 2018, the total GAS supply is about 17 mln coins. The maximum supply is fixed and comprises 100 mln coins. According to NEO documentations, the limit will be reached in the next 22 years.

How to claim free GAS?

Finally, the main part of the article. How can we get free GAS? Actually, as it has been said before, GAS is always free because it is generated automatically. So, the question is where should you keep NEO to get a passive income? Well, there are three most perspective ways below.

Exchanges

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Some of the crypto exchanges allow their users to get GAS by keeping NEO. This is obviously the simplest way of earning GAS because it is quite easy to make an account on the exchange, and most importantly, it is free.

Talking about the disadvantages of this option, it should be mentioned that this is the most unsafe way of keeping coins. Exchanges are often being hacked, and even large platforms cannot ensure the 100% safety. The chance to be hacked is not that high to worry about it and rule out exchanges at all, but it is still there. I mention this because other methods in our top are 100% safe.

In 2018, you can claim GAS if you keep NEO on Binance or Kucoin. As it has been already mentioned, GAS is produced automatically from NEO tokens. So, what happens if the user decides to choose another exchange for keeping NEO? The answer is simple — other exchanges just keep your GAS rewards by themselves.

NEON wallet

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The NEON wallet is a local wallet allowing users to keep NEO on their computers. It is the safest way of dealing with cryptocurrency because the user has an access to their private keys, so no one can steal it. At least, until you do not lose your computer.

There are many different local wallets which support NEO, but the NEON wallet boasts three killer features:

  • It is stable and safe.

  • It is free.

  • It allows users to get their GAS reward.

You can download the NEON wallet on GitHub. After installation, you will just need to send NEO tokens to the new address. Once the transaction is finished, you will start getting GAS automatically.

Ledger Nano S

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Another 100% safe method of storing cryptocurrency is a physical hardware. The Ledger Nano S is one of the most popular models. It is much easier in usage than it seems.

Actually, the Ledger Nano S is a kind of minicomputer, but it has only one function — storing cryptocurrency. If you are not familiar with physical crypto-wallets, here are some instructions how to make it work.

It is important to note that the Ledger Nano S is just a hardware. You will also need to set up a local wallet to which the coins will be sent. I put exactly the Ledger Nano S in our top because it supports the NEON wallet.

In order to set up the wallet, you should install the Ledger Live software. It allows you to manage your devices and make transactions while all the data is stored in a physical wallet. After sending coins to the wallet, GAS will also start being produced automatically.

Cover image via u.today
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Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?

  • Yuri Molchan
    ⭐ Features

    Stablecoins show hardly any volatility compared to Bitcoin and altcoins, many are hoping that they will be able to bridge new crypto economy and regular fiat money


Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?
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Contents

Bitcoin, the father cryptocurrency, emerged in hope that it will remove all intermediaries in electronic commerce that cut off their share of payments. BTC was perceived as a P2P way to replace fiat cash in an electronic format, which would enable one party to pay another without any financial institution or payment platform which would demand its share of a transaction as a reward for its services.

What is wrong with Bitcoin

For quite a while Bitcoin was performing the way the crypto community expected. But the situation changed later – BTC rate became weaker, thus bringing down its financial and economic reliability, when it gets to be used as a regular means of payment.


You cannot have a currency that would cost like a British castle today, a gram of gold – tomorrow and a pack of French fries the day after.

At that point practical fintech minds came up with an idea of creating something which would become a breakthrough in the universe of crypto – a so-called stablecoin.

Will stablecoins solve the volatility problem?

Technically, stablecoins are protected from the volatility roller-coaster that Bitcoin and other cryptos love to ride. They are programmed to keep their prices stable and investors now are largely attracted to this new type of digital assets.

Stablecoin does not show any volatility in its monetary value, since it has a fixed connection to an asset it is pegged to. The major goal of using stablecoins is taking the best from decentralized crypto coins and combining it with a constant value. Thanks to it, stablecoins can be used as a reliable means of trade.

Asset-pegged stablecoins

Asset-backed ones get their value from an asset as can be understood from the name. An asset provides the necessary value to a coin, as well as the necessary legitimacy.

A great example of an asset-pegged stablecoin is Tether (USDT). In spite of a series of scandals at the end of last year, it remains the most popular stablecoin in the crypto market.

Recently, it has partnered with the Tron Foundation to launch a Tron-based stablecoin.

Other examples are TrueUSD (TUSD), USD Coin (USDC), the Gemini Dollar (GUSD), and the Paxos Standard (PAX). They are all pegged to the USD.

Crypto-backed stablecoins

Some digital coins work in a similar way to fiat-backed ones, however, they are pegged to collateral crypto. That means that crypto assets that ensure the value of such stablecoins are stored in a wallet similar to escrow.

A good example of a crypto-pegged token is Maker, which is ranked 16 on CMC.

Algorithmic stablecoins

Even though, stablecoin can be interesting at first thought but the way they are built goes against the principle of decentralization that crypto coins have as a foundation. Thus, many crypto fans and evangelists are positive that stablecoins must be linked towards not a centralized asset but a computer algorithm which takes value from a balance between supply and demand.

Basis is now considered the most promising algorithmic stablecoin of all.

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Can stablecoin ensure smooth future for the crypto industry?

The primary goal of all crypto assets was and remains to come up with virtual asset that would be liquid enough and not vulnerable to market volatility. From this point of view, stablecoins are a dream of all crypto fans and evangelists of a decentralized economy.

Apart from the potential to conduct crypto transactions smoothly, experts believe it can bridge the two worlds – fiat and crypto, bringing them a mutually beneficial coexistence. However, that may take time.

Cover image via u.today
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