A Guide To EOS (EOS) Cryptocurrency
EOS is a relatively new cryptocurrency with a lot of good buzz around it. The year-long ICO smashed all the records by collecting precisely $4 billion, which made it one of the best performing initial coin offerings (ICOs) out there.
On top of that, EOS has been known for its mainnet release which put it in the spotlight. We are talking about the EOSIO Dawn 4.0, the update that brought along a lot of interesting innovations and talking points. Below, we explain everything about the EOS cryptocurrency in detail.
What Is EOS?
EOS – EOS is aiming to become a decentralized operating system with the ability to support industrial scale decentralized applications. This is a goal for the cryptocurrency which sounds pretty amazing and attracts a lot of investors.
However, what really captured the public’s imagination are the following two claims that the company of the altcoin made:
- The company claims to have the ability to conduct millions of transactions per second
- The company is planning to completely remove the transaction fees from their network
There are many strategies which the EOS team, led by Brendan Blumer, is apparently working on. The core team behind the cryptocurrency is “Block.one” which is based in the Cayman Islands.
What’s more important to note is that EOS achieves its scalability thanks to the delegated proof-of-stake (DPOS) consensus mechanism which is a variation of the traditional proof-of-stake.
What Makes The EOS DPOS Different From Traditional POS Systems?
The best thing about the EOS DPOS system is the fact that anyone can participate in it. Anyone holding tokens on a blockchain which is integrated into the EOS – EOS software can select the bloc producers through an approval voting system – and participate in the block producer election. They will be given an opportunity to produce blocks which are proportional to the total votes that they receive – and relative to all other producers.
The DPOS system of the altcoin does not experience a fork. Instead of competing to find blocks, the producers need to cooperate. In the event of a fork, the consensus will switch automatically to the longest chain.
The Benefits Of Using EOS
The altcoin’s Blockchain is aiming to become a fully decentralized operating system which can support decentralized applications on an industrial-scale grade. This sounds amazing, right?
However, a decentralized application (dApp) nowadays requires a couple of things in order to be successful. At the same time, these are the benefits that are provided for dApps.
- Support For Millions Of Users: The support should be scalable, especially for dApps looking for mainstream acceptance
- Free Usage: The platform should enable the developers to create dApps which are free to use for their users – without any payments to the platform for gaining the benefits of a dApp.
- Easy Upgrades: Upgrading the dApp should be as easy as A-B-C and done at anytime the developers want. Same goes for bug fixing – it should be done without affecting the platform.
- Low Latency: Every dApp should run as smoothly as possible with the lowest latency.
- Parallel Performance: dApps should be processed in parallel in order to distribute the workload and save time.
- Sequential Performance: Lastly, there are some functions on a blockchain which should be done in a sequence, and the platform should support it.
This altcoin is easily known as “the best of both worlds” when it comes to dApp creation, competing against Ethereum (which lacks good transaction speed) as well as BitShares and Graphene (which are not that suitable for smart contracts.
How Will EOS Remove Transaction Fees?
The promise of “completely removing transaction fees” which this digital currency has made raised a lot of eyebrows in the crypto community.
The altcoin basically works on an ownership model where users own and are entitled to use the resources that are proportional to their stake – instead of having to pay for every transaction. In reality, if you hold 100 tokens, you are entitled to 100 x 1,000 transactions (for example). This is what eliminates transaction fees.
What Is The Difference Between EOS And Ethereum?
Many users compare EOS to the biggest blockchain network and altcoin out there – Ethereum. However, there is one fundamental difference between the way in which Ethereum and EOS operate.
While Ethereum rents its computational power to the developers, EOS gives actual ownership of their resources. In essence, if you own 1/1000th of the stake in EOS, you have ownership of 1/1000th of the total computational power and resources in EOS.
EOS Dawn 4.0: What Is It And What Features It Brings
As we hinted above, EOS Dawn 4.0 is the latest testnet version which was released by the team behind EOS – prior to the launch of their mainnet.
One of the biggest changes in the technology incorporated in the Dawn 4.0 is the change in the current times from “time of head block” to “time of current block.” This change makes all time-related issues being rectified at once.
The other great features of EOSIO are the RAM Marketplace, the Vote Decay, the header-only validation, future parallelism DPOS, last irreversible block algorithm and other technical improvements
Final Words: The Future Of The EOS Token
The EOS token has performed well over the years. It is obviously designed to directly compete with Ethereum in the “dApp platform” space. And even though the EOS token is not as popular or widely distributed as Ether (ETH), the technology is very interesting and the team behind EOS is strong.
That said, there is every possibility that EOS will rise. Still, Ethereum is already implementing a lot of new features and measures which will help it scale up (plasma, sharding etc.). What we can certainly say is that there is free space for everybody and a stiff competition in this industry.
So, it will be exciting to see how EOS advances in the future.