What is EOS?

eos

April 7, 2019

FrederikNielsen
42

Introduction to EOS

The most popular cryptocurrency is Bitcoin. He is also the progenitor of the blockchain technology, on the basis of which a huge number of alternative cryptocurrencies have already been launched. True, only a few have become popular and reliable. The top ten most capitalized cryptocurrency includes EOS. This project intends to permanently change the technology of making transactions in a cryptocurrency system.

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How EOS works?

In May 2017, Dan Larimer announced the release of the EOS project at the Consensus conference. At the time of the announcement, the creator already had two successful cryptocurrency platforms behind him: the BitShares exchange, opened in 2014, and the Steemit social network, which has been operating since 2016 and has its own cryptocurrency in use, designed to reward user activity. Both developed projects have an impressive transaction rate within the system and a good reputation, which has a positive effect on the reputation of the new project.

The speed of transactions in the system should be provided at the level of 1000-6000 operations per second, and in the future, it is planned to improve the speed of transactions to a million figure per second. In addition, it is planned to completely remove the fees for their implementation.

EOS wallets

As conceived by Dan Larimer, who invented the DPoS, once EOS users vote with wallets and are financially interested in electing the most worthy candidates for validators, they will vote wisely and provide the system with a decentralized level.

EOS wallets

Fans of the token have developed a series of wallets you can store tokens in. Among the most popular ones are the Greymass and Simpleos wallets. You have some community-created wallets to pick from when storing your tokens.

EOS is not for everyone

One of the biggest disagreements regarding EOS is its ICO structure, which uses a model of continuous distribution for a one-year period. Simply put, during ICO, EOS was simultaneously available for purchase on crypto exchanges, which is an unusual practice for such a project. Some believe that this is how the company tried to stimulate speculation and to turn investors against each other. Another miss of the system was the issuing structure – a group of so-called “delegates” could easily print the new currency.

The recent launch of the platform also did not go without surprises – not only was it transferred several times, as a result, so many vulnerabilities and critical bugs were found in the EOS system that developers had to spend tens of thousands of dollars on white hackers.

Main differences of EOS

Den Larimer promised to distribute the huge potential of the EOS network fairly among the holders of tokens, which many analysts considered to be an ingenious innovative strategy to attract investors. Latimer said that if the user owns n% of tokens, he will be able to manage the n% share of the network’s resources, and he will have a number of passive income opportunities. EOS tokens holders are promised seven bonuses at once – throughput for which it will be possible to charge; data storage in the blockchain, which can also be leased; voting rights to participate in the management of the system; access to distributed applications (for users); access to users (for applications); a constant flow of dividends; and airdropы – free distribution of tokens of those applications that will be launched in EOS.

Scalability of EOS

When making a forecast for EOS cryptocurrency, you should consider the fact that these are not just tokens. Behind EOS there is a demanded project designed to exclude cons from the blockchain technology and create a platform that is unique in speed for transactions and project development. Capitalization and the cryptocurrency itself depends on the development of the project. At the start of sales of EOS tokens, their price was equal to $ 1 per unit. In early 2018, the rate of the token to $ 14.59, and the total capitalization of the currency took a leading position in the rating.

For the period from 2018 to 2020, experts predict the growth of the currency to $ 25-50 per unit, and with successful operation and demand for the platform, the cost will only increase. The only problem is that no one knows how successful the project will function and how well ideas will be implemented.

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Can EOS scale?Blockchains like Bitcoin and Ethereum uses a consensus to verify their statements. This setup suggests that each node on the network will update their copy of the blockchain whenever it has been changed. Favorite, this system also eventually leads to scalability concerns. EOS, on the other hand, uses an agreement to validate the events on their blockchain. That means the system focuses on activities (such as transactions) instead of the state (such as blocks of deal records). This method is a bit slower, which means it takes longer to confirm transactions. However, it can process many more transactions in a smaller time-frame than older systems. The Bitcoin network can process around seven transfers of BTC per second. In comparison, EOS can manage one million deals per 2nd– for every node on the network. Imagine that being multiplied that by the number of computers on the EOS blockchain network, and you’ve got a much more efficient network.

Frederik Nielsen
Frederik Nielsen

I’m a freelance writer and full-time curious person. My main interests are philosophy, politics, art, culture, science, and how they’re all interlinked. When I’m not writing, I’m fronting a band, producing records, and making videos. I’m also currently working on launching a YouTube channel that will focus on culture and politics. I think blockchain technology is fascinating because of the huge potential it has to revolutionise not only the financial sector, but society as a whole.

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