- EOS is a decentralized blockchain platform that supports smart contracts and dApps
- EOS is one of the fastest cryptocurrencies and can handle around 4,000 transactions per second
- EOS and EOS dApps have experienced tremendous growth
EOS is a cryptocurrency and blockchain protocol developed by block.one and first launched in June of 2018. In essence, EOS is a decentralized system built for the hosting, development, and execution of decentralized applications.
EOS allows individuals or businesses to create any type of blockchain-based application and provides them with the required scalability, flexibility and speed.
The origins of EOS
Although EOS was initially released in 2018, there was a lot of anticipation for the project based on the white paper published back in 2017. The EOSIO platform was developed by block.one, an open-source software publisher that focuses on providing solutions for blockchain-based projects.
The EOS token sale was by far the most popular and lucrative token sale of all time. The EOS token launch lasted around 1 year from June 26, 2017, to June 1, 2018. EOS received over $4,000,000,000 in contributions and became the biggest token sale ever. The EOS token sale had a few unique attributes, for instance, participants were allowed to withdraw their tokens before the end of the sale. In fact, EOS tokens were even available for trading on exchanges during the token sale.
Basic information about EOS
- The biggest ICO of all time ($4 billion)
- Initially developed by block.one
- The EOS token sale lasted almost one year
The main mission of EOS is to build a decentralized blockchain platform capable of handling and processing fast and free transactions. EOS allows developers to build smart contracts on top of it which enables them to develop dApps. Additionally, the platform wants to solve the problem with slow transaction speeds and aims to process millions of transactions per second.
EOS does not currently process millions of transactions per second, but speeds of up to 3,996 transactions per second have been recorded on the EOS blockchain. The team behind EOS has been releasing a few updates to increase transaction speed throughout 2019.
Technically, EOS does not charge any transaction fees, however, there are some resources needed in order for a transaction to go through. EOS requires CPI, Network bandwidth and RAM for a transaction to be processed.
Main EOS features:
- Blockchain platform for smart contracts and DApps
- Fast transactions
- Can handle thousands of transactions per second
How is EOS Created?
EOS is based on the Delegated Proof of Stake (DPoS) consensus algorithm. DPoS is closely related to the traditional PoS but it’s considered to be more efficient and ‘democratic’. The algorithm was developed in 2014 and it’s a voting system where stakeholders have to vote for a few delegates that have to secure the network for them. They basically ‘delegate’ their work to others.
The voting power, as usual, is proportional to the number of coins held by each user. EOS does not have a supply limit and uses inflation to fund transactions. There are currently around 950 million EOS tokens in circulation and the total supply is around 1.047 billion.
Staking is an essential process for EOS because it rewards users with CPU and NET. EOS staking can be through EOS’s main wallet, Scatter. EOS staking will provide users with the required resources to process transactions.
EOS Use Cases
Clearly, the biggest use-case for EOS is the development of dApps. There are hundreds of EOS dApps, most of them gambling-related but that’s not the only use-case.
There are dozens of other use-cases that include the creation of energy marketplaces that allow users to sell or buy energy, gaming, music sharing, digital payment and more.
Where to buy EOS and how to store it?
You can either store your EOS on any of those exchanges (not recommended) or you can use Scatter, one of the most popular EOS wallets that comes with a Google Chrome browser extension along with it. If you are looking for a secure hardware wallet, the Ledger Nano S is probably your best bet.
EOS vs Ethereum
Both platforms are the biggest smart contract platforms currently on the market. They share a lot of similarities, however, EOS was built to become a better alternative.
Ethereum can currently handle around 12-15 transactions per second and each transaction takes around 15 seconds to process. EOS, on the other side, can handle up to 4,000 transactions per second and each transaction is processed in 1 second with no transaction fees.
Additionally, EOS is using the DPoS consensus algorithm while Ethereum is still using its old Proof-of-Work algorithm although it intends to shift towards Proof-of-Stake one. According to DappRadar, the current top Ethereum dApp has around 3.4k users while EOS’s top dApp has 3.7k although the platform has 3 times fewer dApps in total.
It has to be said, however, that the developer community that is working on Ethereum is much larger than the EOS developer community.
EOS is one of the most popular cryptocurrencies and blockchain platforms and it’s still growing. We might actually see EOS dApps overtake Ethereum quite soon, but EOS still has to solve a few issues like its 30ms transaction limit, some block producers not contributing to governance or the limitations of smart contract upgrades.
EOS definitely has the potential to become even better and the team behind the project is continuously updating it. Low latency, transparent smart contracts, and 4,000 transactions per second are features that set EOS apart from other platforms.
EOS is a decentralized blockchain platform that supports smart contracts and dApps
EOS is one of the fastest […]