GAS

Overview of GAS

GAS, short for Gas Token, is a digital cryptocurrency that was introduced in 2017. It is principally developed and administered by Da Hongfei and Erik Zhang. GAS is paired and traded on various notable exchanges including Binance, Huobi, OKEx, HitBTC, KuCoin among others. The prefered storage wallets for this token include NEO Wallet, Ledger and Trezor. The primary function of the GAS token is as the operational token within the NEO network - a blockchain-based platform that supports the development of digital assets and smart contracts.

Pros and Cons

Pros:

1. Operational token within a well-established platform: GAS token serves as an operational token within the NEO network. Being a part of such a well-established platform helps increase its credibility and utilization.

2. Supported by several major exchanges: The GAS token is paired and traded on various notable exchanges including Binance, Huobi, OKEx, HitBTC, KuCoin, and others. This broad exchange support increases the accessibility and liquidity of the GAS token.

3. Used for Smart contract execution: GAS token has a specific use case within the NEO network, where it's utilized for smart contract execution. This gives the token an inherent utility and demand within the NEO ecosystem.

4. Straightforward storage options available: The GAS token can be securely stored in several popular crypto wallets including NEO Wallet, Ledger, and Trezor. These options make it easy for users to custody their tokens.

Cons:

1. Value heavily dependent on NEO platform performance: The value of GAS is intrinsically linked to the NEO platform since it is used as the operational token within the NEO network. Thus, any performance issues or negative developments related to the NEO platform could impact the value of the GAS token.

2. Potential for competitive devaluation: If the NEO platform decides to support other tokens or introduces additional tokens into its ecosystem, it could potentially devalue the GAS token if users or developers prefer these new tokens.

3. Complicated token economics due to a dual-token system: The NEO network uses a dual-token system where both NEO and GAS tokens are used, each with different roles. For new or less tech-savvy users, understanding this system and how these tokens interact could be complicated.

4. Slower adoption due to less awareness: As compared to other more widely known cryptocurrencies, GAS token may face challenges in gaining widespread adoption due to less public awareness about its role and benefits.

What makes GAS unique？

GAS is a cryptocurrency that brings distinctive aspects to the table in comparison with many traditional cryptocurrencies. Unlike the majority of cryptocurrencies that generally serve as a medium of exchange or store of value, GAS is an operational token that powers the NEO network, a blockchain-based platform known for its focus on developing digital assets and smart contracts.

This introduces an innovative token economy into the cryptocurrency arena, where GAS and NEO co-exist in the same network, each with their unique roles. GAS is generated as a reward for NEO holders and used to fuel transactions and smart contracts on the NEO platform. This relationship between GAS and NEO introduces a different kind of interdependent economics which makes a dual-purpose utility function for a cryptocurrency, something relatively unique in the digital currency world.

While many cryptocurrencies serve a similar purpose of transferring value, GAS differentiates itself by being intrinsically linked to the functions and performance of the NEO network. However, this outlook comes with associated risks, such as the dependence on the performance and acceptance of the NEO platform.

Regardless, it's important to note that while GAS introduces some innovative traits into the cryptocurrency paradigm, it shares common challenges with other cryptocurrencies, such as widespread acceptance, regulatory constraints, and the complexity for new users or less tech-savvy users to fully grasp the token economics.

Circulation of GAS

GAS is the native token of the NEO blockchain. It is used to pay transaction fees and to power decentralized applications (DApps) on the NEO network. GAS is also used for staking, which allows users to earn rewards for helping to secure the network.

The total supply of GAS is 100 million tokens. Of these, 10 million GAS were premined by the NEO founders. The remaining 90 million GAS were generated through block rewards. The block reward for generating a new block on the NEO network is 8 GAS. This block reward is halved every 2 million blocks.

The circulating supply of GAS is the total amount of GAS that is currently in circulation. The circulating supply of GAS is constantly changing as new GAS is generated and as GAS is used to pay transaction fees and power DApps. As of September 13, 2023, the circulating supply of GAS is 10,128,375 GAS.

Here is a table that shows the circulating supply of GAS at different points in time:

As you can see, the circulating supply of GAS is increasing over time. This is because new GAS is being generated through block rewards. However, the rate at which GAS is being generated is slowing down as the block reward is halved every 2 million blocks. Eventually, the block reward will reach zero and the total supply of GAS will be fixed.

The circulating supply of GAS is an important metric because it affects the price of GAS. When the circulating supply of GAS is low, the price of GAS is likely to be high. When the circulating supply of GAS is high, the price of GAS is likely to be low.

How Does GAS Work？

GAS operates in quite a unique manner when compared to conventional cryptocurrencies like Bitcoin. The operation of GAS ties directly to the NEO blockchain network, where it functions as the power source needed to perform transactions and execute smart contracts within the network.

In the context of mining, GAS is quite distinct from Bitcoin. NEO employs a form of delegated Byzantine Fault Tolerance (dBFT) consensus algorithm, which is a significant departure from the Proof of Work (PoW) mechanism used by Bitcoin. As a result, the mining process in the conventional sense of solving complex mathematical problems to add transactions to the blockchain, which requires energy-intensive equipment, is non-existent in the NEO network. Essentially, GAS isn't mined, it is generated as a reward for holding the NEO token in a process often termed as “staking”.

The rate or speed at which GAS is generated is predetermined by the NEO blockchain algorithm. For every new block added to the blockchain, 8 GAS tokens are distributed proportionally to all NEO holders. This makes the creation of GAS a predictable and deterministic process, unlike Bitcoin's mining rewards that are subject to halving periods.

In terms of processing time, GAS and NEO boast significantly faster transaction times compared to Bitcoin, owing to the dBFT consensus mechanism which aims to keep a high transaction rate and lower time for confirmation.

In terms of mining software and equipment, since GAS isn't mined traditionally, there's no need for specific mining software or high-powered mining rigs. Any NEO wallet capable of holding NEO tokens and claiming generated GAS is all that's required, making it more energy-efficient and accessible.

To sum up, the working mode and principle of GAS heavily lean towards energy efficiency, relatively fast and deterministic token generation and a focus on utility within its own ecosystem, distinguishing it from well-established cryptocurrencies like Bitcoin.

Exchanges to Buy GAS

GAS can be bought and sold on a variety of notable cryptocurrency exchanges. Binance, one of the leading and most popular cryptocurrency exchange platforms globally, supports GAS tokens. Other notable exchanges that also support GAS tokens include Huobi, OKEx, HitBTC, and KuCoin. It's worth noting the availability of GAS might vary based on geographic location, and it is always advised to use reputable exchanges and authorized platforms for trading cryptocurrencies. Every exchange usually provides a different set of services and features, such as wallet options, security measures, trading fees and customer support, which should also be considered when choosing where to buy GAS or any other cryptocurrency.

How to Store GAS？

Storing GAS involves securing them in a digital wallet, which functions like a virtual bank account that allows users to send or receive tokens, store them, and conduct token transactions on a blockchain. For GAS tokens, there are several wallet options available, varying across different types such as hardware wallets, software wallets, and online wallets.

1. Hardware Wallets: These are physical devices that securely store users' private keys offline. These are generally considered to be the safest type of wallet. Notable hardware wallets that support GAS include Ledger and Trezor.

2. Software Wallets: Software wallets are applications that can be installed on a user's device. One of the main software wallets that store GAS is the NEO Wallet, which is specifically designed for tokens within the NEO ecosystem including GAS.

3. Online wallets: Online wallets, or web wallets, are wallets that run in a web browser and can be accessed from any internet-enabled device. While they offer convenient access, it's important to be cautious with web wallets due to potential vulnerabilities and always use secure connections.

Before choosing a wallet, it's essential to consider various aspects like the wallet's security features, compatibility with different operating systems, user reviews, and its ability to store multiple types of cryptocurrencies.

As with any cryptocurrency storage decision, choosing a wallet to store GAS tokens should align with the user's specific needs and preferences regarding security, ease of use, and convenience.

Should You Buy GAS？

The decision to buy GAS, or any cryptocurrency, is highly personal and should align with an individual's financial goals, risk tolerance, and understanding of blockchain technology and cryptocurrency markets. Here is some general analysis and advice:

1. Blockchain Enthusiasts: Individuals with a keen interest in the products and innovation within the blockchain technology space, specifically smart contracts and digital assets development, may see value in GAS as it serves as operational fuel for the NEO network, a platform known for digital assets and smart contract development.

2. Long-term Investors: For those seeking to diversify their portfolio with long-term assets, GAS could be an interesting choice due to its underlying usage in a well-known blockchain network. However, it's important to note that cryptocurrencies can be highly volatile and investors should be aware that the market value may go up as well as down.

3. Active Traders: Active traders who are interested in short-term gains may also consider trading GAS, given its listing on several major exchanges. The liquidity of GAS, combined with market volatility, can provide trading opportunities.

4. NEO Supporters: If an individual holds NEO tokens and believes in the future of the NEO platform, obtaining GAS tokens can provide additional benefits as GAS is generated as a reward for holding NEO tokens.

Professional advice for those intending to buy:

1. Conduct Your Research: Before purchasing any cryptocurrency, including GAS, it's crucial to conduct thorough research. Understanding the token's fundamentals, its relationship with the NEO platform, associated risks, and long-term potential is essential.

2. Consider Your Financial Goals: Make sure to consider your individual financial goals, risk tolerance, and investment portfolio. Cryptocurrencies carry a significant risk due to their volatility and should thus only form a portion of a diversified investment strategy.

3. Start Small: As with any investment, it is a good practice to start small and then gradually increase your investment as you gain experience and understanding of how crypto markets function.

4. Secure Your Investment: If you decide to purchase GAS, ensure you have adequate security measures in place to protect your investment. Using a secure wallet and following security best practices is vital.

5. Stay Informed: Stay updated on developments related to GAS and the wider crypto space. Factors that influence the success of the NEO platform could also impact the value and utility of GAS tokens.

However, it's essential to note that this analysis and advice is general in nature; before investing in GAS or any cryptocurrency, potential investors should consider their personal situation and, if necessary, obtain advice from a financial advisor.

Conclusion

GAS is a cryptocurrency developed as the operational token within the NEO network, a blockchain platform aimed at the development of digital assets and smart contracts. Its unique operational role and the dual-token system, in conjunction with the NEO token, place it in a distinctive position within the cryptocurrency realm.

The financial potential or prospect of GAS as an investment heavily relies on a variety of factors, including the overall performance and adoption of the NEO platform, market demand, and broader cryptocurrency market trends. Like most cryptocurrencies, GAS has the potential for both appreciation and depreciation in value, making it capable of either making or losing money for investors.

Future development prospects for GAS will be largely influenced by developments within the NEO platform and the wider adoption and understanding of blockchain technology for digital assets and smart contracts. As the blockchain and cryptocurrency sectors continue to evolve, GAS's role and value may also shift in response.

In conclusion, while GAS does have potential as a part of a diversified cryptocurrency portfolio, there are multiple factors to consider, and potential investors should approach it with diligence, comprehensive research and a clear understanding of the associated risks. Like any investment prospect, there can be no 100% guarantee of profitability or value appreciation.

FAQs

Q: What role does GAS play in the NEO network？

A: GAS functions as the execution token within the NEO network, used to fuel transactions and initiate smart contracts on the platform.

Q: Who were at the helm during the creation of GAS？

A: Gas was designed and introduced by Da Hongfei and Erik Zhang.

Q: How does GAS compare to Bitcoin in terms of mining？

A: Unlike Bitcoin, which uses a Proof of Work mining system, GAS gets generated as a reward for holding NEO tokens, a process similar to staking, thus no traditional mining is involved.

Q: Which prominent platforms support buying and selling of the GAS token？

A: GAS tokens are supported by multiple well-known cryptocurrency exchanges including Binance, Huobi, OKEx, HitBTC, and KuCoin.

Q: What wallets can securely store GAS？

A: GAS can be stored in various wallets such as the NEO Wallet, Ledger, and Trezor, catering to different types of wallets including software and hardware wallets.

Q: What potential rewards and risks accompany the buying of GAS？

A: As the operational token of the NEO platform, GAS has potential growth prospects; however, its value is reliant on the performance of NEO, posing risks in case of negative developments in the NEO platform.

Q: How has the implementation of GAS brought innovation to cryptocurrencies？

A: GAS represents a distinct take on token economics by serving as an operational token within the NEO platform, introducing a dual-token system where GAS and NEO coexist, each with unique functions.

Q: Who should consider investing in GAS？

A: GAS might interest blockchain technology admirers, long-term investors seeking to add cryptocurrencies to their portfolio, active traders, and supporters of the NEO platform.

Q: Where does GAS stand in terms of future development and profitability？

A: The future prospects of GAS are tied to the progress and success of NEO; while it holds potential for appreciation, like any investment, it carries risk and no guarantee for profit can be made.