EOS is one of the darlings of the cryptocurrency world thanks to its free transactions and lightning-fast speed. It’s consistently ranked as one of the most popular 10 cryptos in the world and is uniquely positioned to assist in both the business and enterprise sector.
By: Keegan Francis | Jan 8, 2020 | Modified Apr 10, 2020
EOS is a blockchain platform, much like Ethereum. The goal of EOS is to be a platform capable of supporting business and enterprise use cases. Unlike Bitcoin or Ethereum, which have scalability problems with respect to transaction throughput, EOS has demonstrated the ability to process tens of thousands of transactions per second.
The original EOS codebase was published in 2018, and has since garnered the praise and critique of many in the world of blockchain. The EOS blockchain has a main token that fuels the operations on the network, called EOS. The EOS token performs several functions on the EOS blockchain, which has made it popular on many exchanges, leading to the rise of EOS to be among the top 10 cryptocurrencies in the world since launch.
You can buy EOS at many cryptocurrency exchanges, including:
All Time Low : $0.48 USD (April 29, 2018)
All Time High : $22.89 USD (Oct 23, 2017)
All Time High: $17,769,451,250 (April 29, 2018)
Current : 947,724,311
High (10000+ tx/s)
Reason: The top 1000 accounts on the EOS network own more than 75% of the total supply of tokens. While this is paradigm is not unique within the world of cryptocurrency, in EOS, the tokens double as voting power, allowing the most wealthy individuals to influence the governance mechanisms of the blockchain.
Reason: Block.One, the company that launched the EOS blockchain, raised more than four billion dollars during the ICO period. This has enabled them to invest lofty sums of money into the development ecosystem of the platform. The EOS.io website comes complete with in depth tutorials, FAQs, documentation, and walkthroughs for how you can build a dApps on the EOS blockchain.
Reason: With EOS being consistently in the top 10 cryptocurrencies in the world since its launch in 2018, it has secured a spot as a coin that has matured markets, and great liquidity. Most of the world largest, and most trusted exchanges, such as Coinbase, Binance, and Kraken all have listed EOS markets.
EOS was built by a company called Block.One based out of Hong Kong. In 2017, they held an initial coin offer on the Ethereum network that lasted for a full 12 months. To date, the EOS ICO was the longest, and largest ICO ever conducted. Block.One raised a total of 4 Billion dollars at the end of the 12 month period.
The chief technology officer of Block. One, and architect of EOS, is Daniel Larimer. Daniel has been building novel blockchain projects since 2013 when he introduced a new governance mechanism called “Delegated Proof of Stake”. It is through this mechanism that Daniel was able to design and launch platforms with a capacity to handle thousands of transactions per second, something which Bitcoin and Ethereum are nowhere close to achieving. The two projects from Daniel’s background, which by and large, lead to the inception of EOS, is BitShares, a decentralized business platform, and Steemit, a rewards based social media, and blogging platform.
Block.One has many resources, and thus capability to build a thriving blockchain ecosystem. It is not just the technology that needs careful attention, but also the user community, and developer community. Through grant programs, hackathons, and info sessions around the world, Block.One as well as the broader community, has managed to build one of the largest, most diverse blockchain ecosystems to date.
EOS has several notable advantages over other blockchain platforms.
EOS has an impressive backing. More than 4 Billion dollars was raised by Block. One during the crowd sale, allowing for Block.One to have a very long, and flexible runway to make the project a success. Block.One has proven itself as a company that can tolerate and endure error, criticism, and even legal action taken by the SEC. Using money from the crowdfund, EOS has a built a thriving developer ecosystem, which is one of the most important indications for the success of a blockchain project.
One of the primary use cases, and advantages of the EOS blockchain, is simply its ability to handle, and settle massive amounts of transactions instantaneously. A technical innovation has allowed for EOS to publish several blocks per second. In comparison to Bitcoin’s 10 minute block times, EOS is settling transactions at the speed of light.
Transactions on the EOS blockchain are free.The benefits of this are obvious, as it allows for cheaper interaction with other users of the blockchain, and dApplications. This is a unique selling point of the EOS blockchain as a foundation for enterprise applications, as it allows developers, and companies to focus on the application, while they know that the scalability and usability is taken care of.
EOS is not without its flaws. With a long list of impressive features, and advantages, one naturally wonders what tradeoffs had to be made in order to accomplish such a list of benefits.
EOS has a steep, or complicated barrier to entry with respect to signing up, or receiving an account. Getting an account is not as simple as establishing your private keys, and receiving money from a friend. You need to register account, and associate it with your keys. Some companies have automated this process, and made it more simple, and less technical, but naturally, will charge you a fee. Either way, in order to start enjoying the benefits of the EOS blockchain, you must first educate yourself, and decide the best way to get yourself an account.
The EOS token doesn’t just hold monetary value, it also doubles as voting power. While there are systems where this has worked out in the networks favour, there are strong cases that suggest that the EOS network is highly centralized due to 75% of the tokens being owned by just 1000 addresses. While Bitcoin and Ethereum each have thousands of independent and anonymous nodes running and governing the network, EOS has a fixed amount of 21, known, and democratically elected accounts that are in charge of producing blocks. These network administrators have elevated privileges, and in some cases intervened and reversed transactions that have taken place on the network. To most in the world of blockchain and cryptocurrency, this is a major faux pas that have turned many users of EOS off of the network for good.
EOS produces blocks, and settles transactions at a rate of 2 blocks per second. If you compare this to Etheruem, which on average, takes 15 seconds, then yes, EOS is faster than Ethereum.
EOS started with a total supply of 1 billion tokens. Now, EOS has a total supply of 1.04 billion tokens.
The EOS developer community have developed a wallet called scatter that allows you to interact with dApplications on the web, without ever compromising your account through an online interface. If you’re not planning on interacting with EOS dApps, and you’re just holding EOS tokens as an investment, then Atomic, or Exodus are great choices for a standard EOS wallet.
Yes, EOS is also a dApplication platform, complete with custom tokens, and smart contracts. There are more than 300 dApps on EOS, with about half of them falling into the category of gaming and gambling.
EOS produces two blocks per second, this means that once you broadcast a transaction, its typically included in a block immediately, making payments more or less instantaneous on the EOS blockchain.