When broadcasting transactions over a network, there needs to be a process that provides delivery from one user to the next.  Ethereum, NEO and others all have different approaches towards this and it’s quite different depending on their blockchain.  Ethereum uses Ether in the form of gas to facilitate smart contracts across the Ethereum network.  This gas is essentially a small amount of Ether paid out by the sender in order to facilitate an Ethereum transaction.  NEO on the other hand, utilizes its gas in a completely different way. 

 

With NEO, GAS is a separate valued token from NEO and acts as its own native asset.  This means that there is a value associated with NEO (at present $127.94 CAD) and a value for GAS ($35.37).  GAS for NEO works differently compared to GAS for Ethereum because it isn’t paid out by the user, but rather by the developers who create and deploy smart contracts for NEO.  GAS is representative as a dividend and is distributed within the NEO community to pay for accounting fees as well as an extra service charge to the members who hold NEO tokens acting as shareholders of that community.  More GAS dividends are allocated to members with more NEO tokens when these actions are initiated by the developers who are creating NEO’s smart contracts.  This means that by holding NEO in a private wallet (not an exchange) users are able to automatically receive GAS tokens from simply owning NEO tokens.  This is contrary to Ethereum, which burns up a users Ether as gas to fuel the network. 

In conclusion, both the gas for Ethereum and NEO work to move transactions through the network; users pay their gas in Ether to make transactions on the Ethereum network, users of NEO receive GAS created from smart contracts created on the NEO network.  Ethereum is currently the most widely used platform in blockchain, but it sure pays to have some NEO.