The Neo blockchain platform is developing a sidechain to support decentralized Ethereum applications and ensure compatibility with its own N3 mainnet.
The sidechain is under development. The testnet is planned to be launched at the end… pic.twitter.com/EO9Ck52qGt
— Neo Smart Economy (@Neo_Blockchain) October 27, 2023
According to the founder of the project, Da Hongfei, the test network will be launched before the end of 2023.
The solution integrates protection against MEV attacks and the capabilities of the Ethereum Virtual Machine (EVM).
According to the statement, the sidechain is designed to “provide security, privacy, and an advanced interoperability experience in an increasingly complex DeFi environment.”
Amid the announcement of what Huangfei called a “new chapter” for the project, the NEO token gained 17.2% in price overnight. The asset is trading at around $9. This is about 95% below the high of $198.4 recorded in January 2018.
The market capitalization of NEO is about $637.5 million. The coin ranks 68th in the ranking of cryptocurrencies.
In October 2020, the launch of the Flamingo Finance protocol on the Neo blockchain gave Hongfei grounds to announce the project’s possible competition with Ethereum in the DeFi field.
At the time of writing, the value of assets blocked on the network is $31.8 million (Neo as a whole has $32.4 million). The total TVL of the ecosystem of the second largest cryptocurrency by capitalization exceeds $22.2 billion (DeFi Llama).
The Bitcoin community is also putting forward ideas for integrating the digital gold blockchain with EVM. Such decisions are supported by experts.
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