What is EOS?
EOS was created by Dan Larimmer who began the ICO of this project on 26 June 2017. Having created two other successful projects himself (Bitshares and Steem), Dan Larimmer been behind this project has garnered a lot of trust for EOS as a project that would succeed. Dan Larimmer and the team behind EOS are called block.one, they are a team of blockchain enthusiasts that specialize in creating blockchain applications.
EOS Being a decentralized operating system based on blockchain technology is designed to support commercial-scale decentralized applications which would enable businesses to build their own blockchain applications in the same way web-based applications are built, supporting currency exchange and transactions.
After its launch on 26 June 2017, EOS sold 20 percent of its token supply for about $185 million ETH in the first five days of its 341-day long token sale. 10 percent of its token supply is reserved for the block.one team which is the team behind EOS. The remaining 70 percent of its token supply is structured to be produced and sold at market value.
Being similar to a decentralized operating system, EOS affords developers the ability to build their own applications. Developers need to own an EOS coin in other to use the EOS blockchain and owning the coin also gives them access to the server resources. Although they would not have to spend their coins to use the EOS server resources, it is just a means to ensure they actually have EOS coins before they can use its resources.
The EOS operating system is hosted by servers and is also blocked, producers. Applications that would be running on EOS’s decentralized operating system would be able to communicate with one another. Since these applications that would be built on its decentralized operating system would share common functionalities like user and password, backend and database, and user interfaces. That means frameworks and libraries can be shared thereby making the program more secure and less technical and fastening its further development.
EOS tokens are ERC-20 compatible tokens that are distributed on the Ethereum blockchain in pursuant to a related ERC-20 smart contract. The EOS tokens do not have any rights, uses, attribute, purpose, features or functionalities on the EOS platform.
Main Features of EOS
We would take a look at some of the main features of EOS.
- Decentralized Operating System
Been built as a decentralized operating system, this is an outstanding quality which differentiates EOS from all other crypto-currency. EOS.IO software would give developers the ability to build their own blockchain applications. EOS has been the decentralized operating system in which these other blockchain applications would be built on, would take care of critical tasks such as database management, CPU management, authentication etc. The EOS team have created a prototype of the actual system called “Web Assembly” to demonstrate how flexible the entire protocol is.
- No Transaction Fees
The EOS team has eliminated transactions fees by using the ownership model, so instead of users and developers paying for services on the platform, they only need to have a stake in the EOS economy. The amount of resources that can be used by a user is dependent on the amount of stake the user has in the EOS economy. This is unlike other crypto-currencies that charge hefty fees for resources.
- Parallel Processing and Asynchronous Communications
EOS has support for parallel processing which means the system can process millions of transaction per seconds unlike other crypto-currencies like Nano, Ethereum, and Ripple. This means that EOS would have more scalability than Ethereum and Bitcoin.
- Delegated Proof of Stakes
Unlike other crypto-currencies like Bitcoin which make use of Proof of Work where miners are responsible for creating blocks, verifying transactions, creating new units of the currency or BTC and adding the block to the blockchain. EOS makes use of Delegated Proof of Stakes where there are no miners, instead, there are validators which are chosen against their stake in the platform. This DPoS used by EOS consumes less energy and makes the process very fast.
- Evolution and Self-sufficiency
This model used by EOS allows for a 5% inflation which would further the development of the network.
EOS would have some sort of constitution put in place. This will be a set of rules which would be agreed upon by the majority and this constitution would be linked to every block in the EOS blockchain.
Difference between EOS and other cryptocurrencies
EOS is a unique crypto-currency with great features that set it apart from other cryptocurrencies in the world. The distinct feature is its scalability. Its immediate rival Ethereum’s scalability is a huge problem to its platform. EOS would process over a million transactions in a second, this gives EOS an edge over other cryptocurrencies, take for example Ripple which processes about 50,000 transactions per seconds.
Another distinct feature that sets EOS apart from other cryptocurrencies is its decentralized operating system. It also has no transactions fees as a user are just required to have a stake in the EOS coins in order to have access to its resources. With all these great features of EOS, it is still in white paper. It is yet to be implemented.
EOS Pros and Cons
- EOS is a project designed by Dan Larimer, who has developed successful projects like Bitshares and Steem and also invented DPoS.
- Graphene, which EOS would run on is an implementation of DPoS which has been tested and has been working on Bitshares for years.
- EOS has massive funding as it sold 20 percent of its token supply in its first five days. And it already holds more ETH than the Ethereum Foundation.
- EOS is made for the mainstream. It has scalability and it is also upgradable. It is built to handle the vast volume that would come from being adopted by the mainstream.
- The EOS token holds no real value. It has no purpose.
- Stiff competition amongst crypto-currencies. Been able to convince businesses and developers to move over to its operating system.
- EOS still needs to be adopted by the mainstream. Big businesses need incentives before they can move to EOS operating system.