A blockchain platform for developing decentralized applications (dapps), EOS is being built with the aim of creating the world's most powerful infrastructure for dapps. Regularly listed as a leading competitor to Ethereum, EOS released its Dawn 2018 update in April 3.0 and quickly became one of the top five cryptocurrencies by market cap.
There is a lot of hype surrounding the platform and its token, also known as EOS, so let's take a closer look at how EOS works, what benefits it offers and what the future could hold for this ambitious project.
What is EOS?
EOS provides an operating system-like set of tools and services for the EOS.IO software introduces a new blockchain architecture designed to enable vertical and horizontal scaling of decentralized applications. This is achieved by creating an operating system-like concept on which applications can be built. The resulting technology is a blockchain architecture that can eventually scale to millions of transactions per second, eliminate user fees, and create, host, and run commercial dapps. The software covers everything from user authentication and accounts to cloud storage and server hosting, aiming to provide an all-in-one solution for dapp developers. EOS is designed to not only ensure the quick and easy deployment of dapps, but also potentially scale to millions of transactions per second and eliminate user contributions.
EOS is similar in many ways to Ethereum, the original dapp platform that invented the smart contract system and is the second largest digital currency in the world.
What does the EOS coin do?
The EOS coin is the native currency of the EOS ecosystem. Once the EOS mainnet is live and developers can create and deploy dapps on the network, they will need EOS coins to generate tokens for their own platforms. Whether an application is actually accepted on the EOS platform is also determined by a voting system that is only available to EOS token holders.
In a unique move, the EOS token sale began in June 2017 and takes place for the best part of a year (341 days), although US residents are not allowed to participate in the token sale. The year is split into 350 distribution distributions – at the end of each period, the total number of tokens to be distributed in that period is allocated to buyers based on the amount of Ether (ETH) they contributed as a part of the total ETH received during the period. Once the token sale is complete, 1 billion EOS tokens will be distributed.
What makes EOS unique?
What problems does EOS want to solve? Why does the world need another blockchain-based dapp platform? The most concise explanation of what the project aims to do can be found in the whitepaper abstract:
The EOS.IO software introduces a new blockchain architecture designed to enable vertical and horizontal scaling of decentralized applications. This is achieved by creating an operating system-like construct upon which applications can be built. … The resulting technology is a blockchain architecture that may ultimately scale to millions of transactions per second, eliminates user fees and allows for quick and easy deployment and maintenance of decentralized applications, in the context of a governed blockchain.
In many ways, EOS wants to do what Ethereum does – but in a new way. Although Ethereum uses its own programming language, EOS focuses on user-friendliness by allowing developers to create smart contracts with a large number of commonly used programming languages. While Ethereum is looking for the best solution to the scalability issues that currently limit the number of transactions it can process at any given time, EOS uses a power of proof delegated algorithm designed to scale much more effectively. Whether this proposed solution works or not remains to be seen.
In short, EOS aims to provide a complete dapp development toolkit that enables businesses and individuals to quickly and easily create blockchain-based applications.
How does EOS work?
In its white paper, the EOS team describes some of the key requirements for blockchain applications, including:
- Support for millions of users
- Free use
- The flexibility to ensure easy upgrades and bug fixes
- Low latency with a delay of no more than a few seconds
- Sequential performance to handle high volumes
- Parallel performance to distribute the workload of large applications across multiple CPUs and computers
To achieve these goals, EOS uses a delegated proof of stake (DPoS) consensus mechanism.
In this system, anyone holding tokens on a blockchain using the EOS software can select block producers through a permanent approval system. Anyone can choose to participate in the block production and get the chance to produce blocks, and the software allows to produce blocks every 0,5 seconds. This is designed to not only provide the flexibility needed to upgrade or fix the system, but also to allow the system to scale to 1 million transactions per second.
Other features of the EOS software include:
- An authentication system that includes user accounts with different authorization levels
- Server hosting and cloud storage
- Parallel execution and asynchronous communication to enable the support of thousands of commercial-scale roofs
The EOS team
EOS is built by block.one, an exempt company from the Cayman Islands. 100.000.000 EOS, or 10% of the total number of EOS tokens to be distributed, will be reserved for block.one and not offered to the public as part of the token sale.
The project is led by block.one CEO Brendan Blumer and CTO Daniel Larimer, both of whom have significant technical experience. Larimer, in particular, has an impressive resume and has played a key role in the development of successful crypto projects Steem and BitShares. But while block.one is building the EOS software, the EOS blockchain platform will not be configured or launched – this will be managed by members of the community unrelated to block.one.
If you're considering buying EOS tokens, make sure you do your own research before parting with your hard-earned cash. While EOS could one day provide a viable alternative to Ethereum and on paper has at least a few significant advantages over the Ethereum network, the main fact to remember is that it has not yet been proven. Moreover, as EOS is being developed, Ethereum and other established dapp platforms continue to grow and strengthen their position.