What is EOS?
Operating System (EOS) is a comprehensive set of practical tools and concepts designed to allow horizontal and vertical scaling of smart contracts and decentralized apps (dapps). It is aimed at helping entrepreneurs achieve their business goals. The cryptocurrency is based on blockchain technology just like Ethereum, but it is currently the fastest and most scalable compared to other rival blockchain platforms. EOS.IO is the software behind the cryptocurrency. It is what provides the underlying blockchain architecture. The system offers authentication, accounts, asynchronous communication, databases and scheduling of apps across various CPU cores.
EOS is designed
to aid in building and running web apps across the dynamic blockchain network. Its governance systems and smart contracts can be utilized in setting up Decentralized Autonomous Organizations (DAOs). This makes it similar to Linux, MS Windows and Mac OS that are used as a basis for developing and running computer programs.
Who is the Founder of EOS?
Dan Larimer, the creator of Bitshares and Steem is the founder of EOS. It is based on rules published in the white paper of June 2017. The most fascinating thing about EOS is that relies on its community to make its chains and that it doesn’t provide its own blockchain for the network. The cryptocurrency is expected to supply a total of one billion tokens which is a fairly large amount compared to other coins on the market. In fact, in its ICO EOS stunningly made headlines by raising a record of $150 million in only 5 days!
Blockchain and Technology behind EOS
As mentioned earlier, EOS was primarily developed to solve speed and scalability problems experienced by the two preceding blockchain generations. Bitcoin users, for
instance, report that it is too slow to be scaled for mainstream adoption. Similarly, even though Ethereum have made attempts to improve the speed of
their transactions, it is still not up to par to accommodate large-scale transactions. In fact, they can only process 20 transactions in a second.
EOS is being designed to handle millions of transactions per second. This will make it suitable for complex Decentralized Application ecosystem, tokenized and
decentralized economy. It will make the development of decentralized applications easier and efficient. The cryptocurrency relies on groups and individuals to build their personal blockchains and use them to host the software. At the initial stages, there will be several blockchains but only one gets the most support from block producers and token holders. The most popular chain gets valuable tokens thus motivating the community to use it. Every chain in the cryptocurrency will use a enesis block’ as the initial place for the distribution of tokens. The genesis block carries EOS data obtained from Ethereum blockchain. This is because the cryptocurrency used Ethereum’s platform as host when they issued their ICO before launching their own. The data contained in the genesis block include addresses and the number of tokens. It means anyone with ERC-20 EOS tokens can claim new the cryptocurrency tokens based on any of these chains. EOS token holders are required to vote for 21 lock producers’ to create a block for the blockchain. Block producers refer to account holders on the blockchain who verify transactions and supply resources to that network. They can use any computer provided it is connected to the network. Block producers are rewarded with the cryptocurrency tokens for confirming blocks.
In case the blockchain has insufficient resources needed for the computation process, then block producers will be required to obtain better hardware to maintain their
positions on the keychain. Basically, it allows for information exchange and interoperability.
What are the Advantages of EOS?
- Developers find it easy to use.
This is because it incorporates a web-based toolkit that allows simple development of dapps, role-based permissions and other inbuilt functions.
- No transaction fee to incur. Unlike Ethereum and other blockchains, EOS doesn’t require users to pay any fee when sending transactions. It uses a block-producer model to determine the fees to be paid depending on the service provided and charged by the developers of dapp.
- Quick transactions. The cryptocurrency utilizes a parallel processing technique that can perform millions of transactions in a second.
- It is a self-sufficient system. It can only generate about 5% annual inflation rate which is used to pay block producers for validating transactions.
- Reduced hacking risks. Unlike other blockchains that can be hacked, if a buggy dapp is noticed on the cryptocurrency it can be frozen by the block producers till the time it is fixed. It means cases of
hacking it significantly reduced.
- Good governance. There is a
structure-based constitution where the voting process is done before rules are
Is it good to Invest or Trade EOS?
Most investors find themselves in dilemma on whether to consider EOS tokens a trading or
investment opportunity. However, the most recommended move is to invest. This
is because the potential risks of losing tokens are less. In fact, the chances
of losses are outweighed by the quick gains and benefits that come with them.
Investors can obtain the cryptocurrency tokens by buying them from an exchange or through ICO
EOS is designed with scalability and speed in mind. By being scalable, EOS offers minimal
requirement for decentralization. So far, it has shaken its major competitors
just by addressing the challenges they’ve encountered. With the quick
transactions, scalability, user-friendly development tools and reliable team,
investors and traders expect much more from the cryptocurrency. It will surely turn the entire
blockchain technology around.