NEO (Community Chain), Jiuquan Chain, Enterprise Chain and other NEO network chains. How will this all work?
Last year Da Hongfei did an interview in which he stated that rather than have NEO as a parent chain, having child chains connected to it like a hub (Polkadot), he envisioned that NEO will have many separate chains that can talk to eachother. He stated at the time that there would be a china focussed one (later we found out this was Jiuquan Chain), a western enterprise chain, a community chain (the NEO we have today) and others depending on uses / countries regulations. These chains would interact with each other, they’d be interoperable, but, they would be separate chains. In the case of Jiuquan Chain, we know that it does not directly impact the value of NEO/GAS, as cryptocurrency is banned in china, so they will transact in yuan instead of using GAS. I’ve jotted some benefits and negatives to Jiuquan Chain in relation to NEO below: Benefits of Jiuquan Chain in relation to NEO: · Raises awareness of NEO, gives it legitimacy. · May bring in developers once they see projects being built, seeing the benefit of building on NEO. · More ideas / project templates for others to work off. · If China ever decides to reverse their ban on cryptocurrency, then it’s good NEO have established themselves there as a trustworthy chain. · Potential interoperability between Jiuquan chain and NEO. Negatives of Jiuquan Chain in relation to NEO: · Transaction fees not paid in GAS, they will be paid in Yuan. Therefore, this chain does not directly add value to NEO (community chain). NEO/GAS won’t exist on Jiuquan chain. · Chinese citizens, even if Jiuquan Chain and NEO could talk to each other, they are pretty limited by the cryptocurrency ban on what they could do with NEO. On the flip side to that, I’ve seen talk of them potentially being able to buy NEO NFTs by paying in yuan, but not sure if that will happen or how far away that is. NFTs are legal there so we can see why it could be possible. However, Jiuquan Chain is china focussed, and other countries do not have a cryptocurrency ban, therefore these other chains (like enterprise chain) may have a more direct benefit to NEO, despite being separate chains, than Jiuquan Chain does. · What if these chains do operate using GAS, the same GAS on NEO. Rather than these chains having their own tokenomics or using a fiat coin to pay for transactions, it would add a lot of value to NEO/GAS if transactions on those chains had to be paid in GAS. I’m not sure the best way to do that, but, I’d imagine in order to transact they’d need to wrap GAS to use on that chain. For example, enterprise chain would pay for transactions using eGAS. It would also mean that entities on these other chains would be incentivised to hold and vote for governance on NEO (community chain) to accrue GAS that they can then wrap to eGAS and transfer to these other chains to use for transactions. · Or the other side to that is, these other chains won’t use GAS like Jiuquan Chain, and either use a different token or a fiat coin. That’s not great for the value of the NEO/GAS tokens if so. I guess my concern with that is, the ones that would benefit the most are neo foundation / NGD rather than the NEO community, as foundation/NGD would either get paid directly by these enterprises to use that chain like a flat fee, or through the transaction fees by running nodes. They wouldn’t be transacting in GAS, so no reason for value to rise in that sense. The reason I’ve brought this up is due to the rumours of PayPal circulating again past couple days got me thinking. I wondered if they did build a stable coin for NEO, based on Da talking about an enterprise chain, that they would likely build on that, rather than NEO (community chain), and how that would impact NEO. Obviously it would be great for getting NEO some attention, but, wasn’t so sure on the use of NEO/GAS in relation to this chain, or other chains they decide to build. What are your thoughts on that and how this will all work? Will these chains such as enterprise chain use GAS for transactions or is there a good reason why they wouldn’t?
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