Neo Announces EVM-Compatible Sidechain
After a prolonged period of dormancy, the once-prominent project Neo has announced plans to embark on a new chapter by developing an Ethereum-compatible sidechain.
Neo Announces EVM-Compatible Sidechain
According to an announcement posted on X (Twitter), the Neo blockchain project—previously dubbed as "China's Ethereum"—is in the process of building a sidechain compatible with the Ethereum Virtual Machine (EVM).
This information was disclosed by Neo's co-founder, Da Hongfei, during a community conference held in Hong Kong.
#Neo Founder @dahongfei, announcing #Neo’s New Chapter: an #MEVFree, #EVM compatible sidechain, to ensure security, privacy, and a smooth experience in the increasingly complex #DeFi landscape.
— Neo Smart Economy (@Neo_Blockchain) October 27, 2023
The sidechain is under development. The testnet is planned to be launched at the end… pic.twitter.com/EO9Ck52qGt
Neo's new sidechain will support compatibility with the Ethereum Virtual Machine (EVM), enabling direct connectivity to the world's leading blockchain for smart contracts. Additionally, the new platform will feature MEV resistance mechanisms to safeguard user interests, ensuring smooth usability, security, and privacy.
Read more: MetaMask Wallet
The new sidechain will inherit Neo's current tokenomics, NeoVM, and dBFT consensus mechanism, thereby enhancing the utility of its two existing tokens, NEO and GAS.
Neo has announced that the development of the sidechain has commenced and plans to deploy a testnet by late 2023.
In a bid to expand the Neo ecosystem, the development team also aims to create a crypto wallet application similar to MetaMask, enhancing security to mitigate attacks and lower entry barriers for both the project and users.
The price of NEO surged significantly on October 27 following the announcement of the sidechain development.
4-hour chart of NEO/USDT pair on Binance as of 09:30 PM, October 27, 2023
Neo has become the latest entity to announce the development of its own layer-2 solution, following previous projects such as Injective Protocol, Manta Pacific, Astar zkEVM, Ancient8 Chain, Canto, and Celo.
