Just before the launching of EOS in 2018, some scandals that kept the crypto world buzzing took place. An unregistered ICO (initial coin offering) was initiated on the EOS blockchain. This kept people asking what EOS is about.
The issue of the unregistered ICO makes one of the most interesting histories in the world of cryptocurrency. It was first published on June 1, 2017, and ran until June 1, 2018. Thus, Making it one of the longest ICO in the history of cryptocurrency.
Additionally, it became one of the most successful cryptocurrencies since it made $4 billion during this period.
In this copy, We will learn what EOS and EOS.io is all about and how they work. You’ll also discover the special features of EOS, its advantages and its disadvantages.
What Is EOS?
EOS is synonymous with Ethereum, which is a larger Blockchain cryptocurrency because its blockchain allows other smart contracts and decentralized applications coupled with its currencies. However, unlike Ethereum, EOS transactions do not compel any commission.
Officially, EOS was introduced in June 2018. It was founded on the EOS.IO Technical White paper V2.2. The Blockchain Power is another cryptocurrency such as Everipedia (IQ), although the most famous crypto on this blockchain is EOS.
EOS was ranked as top 30 best cryptos by Marketcap, it stood at $3.7 billion USD as of July 2021. There are an additional 955 million pieces of EOS in circulation.
EOS crypto is one of the top digital currencies in terms of market capitalization. EOS has grown to become one of the most sought-after cryptocurrencies in the modern market.
The EOS.io
EOS.io is a blockchain developed to foster the performance of unique types of programs called decentralized applications (Dapp).
The technology strives to address the historical problem of running decentralized apps using blockchain. This is because popular apps are blocking the capacity of larger, more advanced blockchains like Ethereum (ETH), causing performance problems for all users.
One of the many new blockchains that prioritize decentralized app performance, EOS.io is designed to increase the number of transactions per second. This is done while eradicating the fees charged to the user performing the transaction.
However, other notable distinctions set it apart from rival blockchains.
EOS.io Distinctions
First, EOS.io programmers can create apps through WebAssembly languages such as C++, Java, and Python, rather than new project distinct programming languages.
In addition, Software updates are taken by voting with EOS. EOS is the EOS.io native token. The token is required as payment or fees for managing its Blockchain.
EOS.io is perhaps the most famous organization of the largest initial coin offering (ICO), raising over $4 billion, selling a billion EOS during a year’s sales.
Ever since EOS.IO has kept users informed on the status of its roadmap via its official website. For more periodic updates, you can bookmark the EOS Blog. This blog contains tips and tutorials on its networks and their evolving technologies.
How EOS Works
EOS is a design that functions as software that allows developers to build Dapps while taking advantage of blockchain technology.
In contrast to other platforms utilized for Dapps, such as Ethereum, EOS has no expense requirements. It is updated and has a low delay, which increases transactions to millions per second.
As mentioned above, the EOS cryptocurrency employs the delegated proof of stake (DPoS) as a single consent algorithm to safeguard the blockchain.
Unlike PoS and PoW algorithms adopted by most cryptocurrency blockchains, DPoS guarantees that only those who possess EOS.io software tokens can vote for block producers.
Agents can create blocks based on the number of votes compared to other manufacturers.
Approved manufacturers can develop a block in the EOS Blockchain every three seconds. Tokens are assigned instead of transaction fees for each new block.
Unlike other blockchains, which lean on miners to unravel tricky puzzles, EOS Crypto relies on individuals and their votes to protect Blockchain.
How Does EOS.io Work?
EOS.io Blockchain aims to imitate the effects of the real computer and the software itself uses known calculation concepts in its processes.
For instance, there are three varieties of resources that power the EOS.io blockchain.
These are:
- Bandwidth (Disk) – Required to relay information over the network.
- Computation (CPU) – The processing power required for running DAPP
- State Storage (RAM) – Used to store data in the blockchain
EOS is required to acquire all three resources at EOS.io. This means that the developer needs to purchase EOS to run the launched Dapps.
In particular, apps created on EOS.io allow app users to use EOS transfers for free, as users do not have to pay for transactions. These costs will not go away with EOS.io, but will only be passed on to app developers who have to pay for network resources.
Special Features Of EOS
The main characteristic of the EOS is that no transaction expenditure is needed. Instead, it awards minors with the newly formed EOS Token. This means that the EOS ecosystem is inflation integrated. Those who stake EOS tokens offer stability while others are mining and trading.
Let’s check out some of the features of EOS.
#1. Scalability
The biggest difficulty of the Blockchain is the problem of scalability.
Visa operates 1667 transactions in seconds, while Paypal oversees 193 transactions per second. Related to this, Bitcoin only operates 3-4 transactions per second, while the Ethereum fair is a little better with 20 transactions per second.
The reason for this results from the fact that each network node must consent for the transaction to happen. EOS claims that because they use a DPoS consensus mechanism distributed, it can easily calculate millions of transactions per second.
What then is DPoS?
DPoS
The meaning of EOS Cryptocurrency cannot be exact without the DPoS mechanism. DPoS is a consensus algorithm used on the EOS program, also known as delegated proof of stake. It has been developed to ensure security by improving blockchain transactions representation.
DPoS is the execution of a technology-based democracy. It uses a voting and election procedure to protect Blockchain EOS from harmful use and centralization.
This algorithm was created by Daniel Larimer, a US software entrepreneur in cryptocurrency. He’s also the founder of EOS.IO, Bitshares, and Steemit. He programmed it as a better, adaptable, and developing alternative to conventional agreement algorithms.
During usage, each block is approved to prevent undue use of fuel and power. DPoS guarantees that all transactions are done quickly on all network development phases.
#2. Flexibility
The DAO attack shut down the entire Ethereum system. Everything stopped because of the hard fork, and the community was divided.
Since EOS uses DPoS, this is uncertain to occur again in the ecosystem. However, If the DApp fails, the elected block producer can freeze the DApp until the system is processed.
This is just an extension of the DPOS system and not all nodes need to do chain maintenance.
#3. Usability
EOS enables well-defined authorization levels by embedding functions, such as a set of internet tools for interface advancement, self-description, database systems, and declarative authorization schemes.
#4. Governance
In the EOS blockchain, the management is conserved by defining the competence and selection of the law with other beneficiary regulations. This usually employs the use of the legally binding constitution.
Each transaction of the EOS must include a hashing of the Constitution to the signature. This is essentially binding users to the Constitution.
However, if a DAO happens and the EOS system is forced to look for protocol changes and quick fixes? In such emergencies, block producers retain the capacity to hasten up the remediation process.
The constitution and protocol is modified by the following procedure:
- Changes are proposed by the block producer who received the approval rating of 17/21
- 17/21 approval must be upheld for 30 consecutive days
- All users must approve the transaction using the new constitutional hash.
- The block producer adopts the source code changes to reflect the constitution changes and uses the hash of the git commit to deliver it to the blockchain.
- They require block manufacturers to maintain 17/21 approval for another 30 consecutive days.
- After that, the full node will take a full week to modify the new changes.
- Nodes that do not follow the new policy will be shut down automatically.
#5. Parallel Processing
In parallel processing, the program protocols are distributed into multiple processors. This will significantly reduce the execution time of this program.
EOS ensures parallel processing of smart contracts by horizontal scalability, asynchronous communication, and interoperability.
Let’s see the meaning of each of these terms.
- Horizontal scalability: Resizing is done by adding more blocks during vertical scalability. The horizontal scalability on the other hand implies strengthening the systems and adding more computers to the reserve pool
- Asynchronous communication: There is no need for desynchronized communication, that is, the parties may not communicate at the same time.
- Interoperability: capacity of a computer network to swap and generate use of information.
#6. Self-Sufficiency
Each Blockchain based on the EOS platform will have to develop a natural 5% rise per year. This will be allocated to the platform block manufacturers according to their authorization of platform transactions.
Furthermore, the three best smart contracts receive the largest number of tokens and also, holders receive a share.
The reason for this is to ensure that a blockchain does not depend on a single foundation, organization, or individual for its expansion, development, or maintenance.
#7. Decentralised Operating System
This function is Perhaps the most important feature to understand what EOS is.
Assume MacO / Windows coupled with crypto-economic encouragements.
Today, Ethereum is a decentralized system, and EOS is positioned as an operating system. In itself, that renders EOS a more focused product, at least in theory.
Advantages and Disadvantages of EOS
To every good side, there’s also a bad side. In this section, we explained the Advantages and disadvantages of EOS as a token and as blockchain.
Advantages
EOS blockchain comes with a wide range of benefits, they include:
- Ease of use for developers: EOS empowers developers with a large toolkit for DApps development. It also has role-based permissions, database schemas, and other embedded purposes that make decentralized application development easy and stress-free.
- Governance: The governance system of EOS is based on a network with mutually accepted regulations. The strategy of changing these protocols is carried out by voting. However, Most cryptocurrencies find it impossible to achieve an agreement when the need arises. However, With EOS it is relatively easy to find a solution for each problem.
- ICO-friendly: As in other smart platforms, such as Ethereum, users can organize the ICO on the EOS Blockchain.
- Free transactions: Although, Most cryptocurrencies expect users to expend a certain fee with each transaction. Yet, EOS uses the block producer model to determine how fees are calculated based on the services provided by dAPP developers.
- Fast transactions: EOS uses parallel processing and can execute thousands of thousands of transactions per second.
Disadvantages
EOS blockchain also possesses some fair amount of shortcomings. They include:
- No guarantee tokens will be honoured: One of the justifications why the EOS currency is so famous is because the EOS community aims to commemorate the token, block.one is not lawfully required for that. Thus, the more reason users have to make sure it happens.
- Potentially centralised: Although the DPoS mechanism is constructed to impede the decentralisation of EOS, it still counts on 21 block manufacturers to verify all transactions. This causes fear because some main data providers’ data centres can execute a network.
- In addition, users can not control the system unless they decide to execute a full node. EOS is based on a vote, which constantly causes low electoral frequency in most systems. The reality that only a few individuals make contributions as to which direction the blockchain should go further makes the EOS potentially centralised.
Summary
The EOS is distinctive in its own making and is supported by a fascinating history. In October 2019, however, Block. One, the organization that owns EOS, was fined $26 million for initiating an unregistered initial coin offering.
However, Despite this scandal, the Blockchain and token have since proved their relevance and superiority in the crypto world. And by the mechanism it adopts, lots of traders and holders have found themselves investing in the token.
Frequently Asked Questions
Is EOS coin a good investment?
Wallet Investor deems EOS a “very good” long-term venture.
How does EOS work?
EOS works with a holding model in which users hold and have the right to use resources commensurate with their participation, rather than paying for each transaction.
Is EOS better than ethereum?
The EOS system surpasses the abilities of Ethereum in some ways.
How much EOS do you need to stake?
0.1 EOS will be sufficient
Can you mine EOS?
EOS mining is not possible. The EOS blockchain does not need miners. It is built on a consensus algorithm called delegated proof of stake (DPoS).
References
- blockgeeks.com – eos blockchain
- thebalance.com – eos explained
- tezro.com – what is eos cryptocurrency
- kraken.com – what is EOS.io
- investopedia.com – what is eos
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