- Created by Daniel Larimer, a pioneer in this sector.
- Ideal Blockchain ecosystem for creating Dapps in a secure way.
- The EOS network is known for its fast processing speed.
- It had a very successful ICO.
- Support of noted investors like Michael Novogratz, Peter Thiel boosted investor confidence.
- Developers get more flexibility for multiple-level data storage and access options.
- The SEC controversy made headlines.
- The delegated-Proof-of-Stake mechanism causes some amount of centralization.
- EOS token price has surged and bounced several times since inception.
The crypto sector growth continues to defy predictions and the user base keeps growing at a phenomenal rate too. Almost every fortnight, you get to hear about new cryptocurrencies and platforms. The new generation crypto coins are being sought after for their additional utilities, unlike the first generation ones. One of the new generation cryptocurrencies that have managed to garner a large user base and continue to make headline is EOS. It is a cutting-edge Blockchain ecosystem, designed with the aim of simplifying programming and creation decentralized applications.
The history of EOS coin
The whitepaper of EOS was released in 2017. It was introduced as a secure Dapp development platform. The Blockchain-based open-source protocol was launched in the middle of 2018. Its ICO lasted for almost one year and that set one kind of record. After the launch, the team made one billion tokens available. Since the EOS.IO Blockchain was still in the planning stage, developers issued tokens using Ethereum’s Blockchain. EOS managed to garner around 4 billion and it was spent in building EOS Blockchain and its ecosystem.
EOS.IO functions as a subsidiary of Block.one, a private Blockchain firm. Its CTO is crypto star Daniel Larimer. He is a major player in the crypto space.
The advantages of EOS.IO
The USP of the EOS.IO platform is it does away with the system of using transaction fees. Besides, the platform is quite scalable. It can outshine other means such as credit cards for TPS. This makes it well suited for making Dapps. EOS.IO is much like Ethereum and works as a suitable operating system on which the decentralized applications run. It comes with a set of services and functions needed by Dapp developers. EOS combines several popular features found in the prevalent Blockchain systems. The proponents say the protocol is quite secure and easy to use. They even go as far as to say it will dethrone Ethereum one day in Dapp arena!
A peek inside the operating mechanism of EOS
The EOS ecosystem makes use of a fully-fledged authentication system. Developers may create user accounts and set user permission levels from the EOS panel, directly. The platform enables businesses to give database access to users on the network. The companies may also access data on the EOS network and choose to save the data locally.
EOS.IO offers the Dapp developers cloud storage as well as server hosting. This layout enables the developers to make and deploy applications minus any hardship. The developers can then concentrate on Dapps functionalities than other aspects. EOS integrates cutting-edge analytics so that developers can keep a tab on Dapps performance.
The EOS platform developers discarded the power-hungry Proof-of-work consensus mechanism. In this method, the computational power is proportionate to the energy consumed. EOS developers chose PoS consensus mechanism for block validation. Here, miners do not compete with one another. They acquire EOS tokens and then stake the token in their wallets. This also serves as means to deter the attackers. Anyone with a desire to control the network will have to buy a huge amount of tokens and if this network gets compromised, they will hurt their own interests.
The older generation cryptocurrencies including Bitcoin rely on their nodes to validate Blockchain state using consensus. The nodes continually confirm each and every transaction taking place on the network. It is a secure strategy but has some scalability concerns. EOS evades these concerns by setting focus on each transaction and not on the entire state of its Blockchain. EOS.IO nodes authenticate a series of events to determine the purity of the network state. As the nodes restart, they reconfirm the state of the Blockchain fully. This is somewhat more time-consuming than the PoW method. However, the nodes do not take long to assess the series of events. So, it manages thousands of transactions each second.
EOS is also known for its Community Governance model. The validators in this network get absolute control over the direction and they can vote on relevant issues. Voting rights also cover major network concerns. So, they can control when to make changes and fix bugs.
What about the EOS tokens
The EOS tokens are used by developers making Dapps on the platform. While this token does not have additional usage, it is listed in the major crypto exchanges including Binance. The validators get rewarded with new EOS tokens for each block they create.
Are there any drawbacks?
It is near impossible to find any cryptocurrency project that can be called perfect or flawless. EOS too has some limitations that you should consider before using the platform. The delegated-Proof-of-Stake mechanism leads to centralization as it creates 20 chief block validators. EOS was also embroiled in a controversy with SEC. The parent company, Block.one was fined by Sec for a hefty amount, $24 million.
Summing it up
EOS is among the new contenders to enter the fast-growing cryptocurrency sector. Right from the time of inception, it started hogging headlines, mostly for the right reasons. Its powerful technology gives EOS.IO an edge over many competing crypto platforms. It is especially suited for making advanced Dapps. The project is backed by one of the pioneers in the sector- Daniel Larimer and it has also garnered the support of some top investors. While its token value has surged and plummeted many times and the SEC controversy did ruffle some investors, its advantages far outshine the drawbacks.