Thanks to a strong backing and an experienced team, the EOS coin aims to disrupt the status quo. EOS.IO is a blockchain protocol for developing decentralized applications that promises an unheard-of degree of scalability and throughput.
With designs to be a fully decentralized operating system for developers, the company hopes to rival Ethereum’s ecosystem by providing easier scaling and a more user-friendly development environment.
What Is The EOS Coin?
The EOS.IO blockchain is a decentralized operating system designed to facilitate speedier development of Decentralized Applications (dApps). The platform uses a similar infrastructure to Ethereum’s ecosystem, but with a greater emphasis on flexible development and significantly higher throughput to avoid resource bottlenecks. Moreover, EOS offers more than simple infrastructure, providing cloud storage, authentication tools, and even server hosting.
The company also aims to execute over one million transactions per second thanks to its architecture, though it currently processes roughly 1200 TPS (still significantly higher than Ethereum’s 15 TPS or Bitcoin’s 7). EOS.IO plans to achieve this by using a delegated Proof of Stake model, which significantly reduces resource and time costs for verification, as well as allows for significantly higher rates of processing.
What Makes The EOS Coin Unique?
One of the most unique qualities of this coin is the way it achieves consensus, and how that impacts transaction speeds on the network. Most blockchains use a paradigm known as “consensus over state”, which allows any node at any given time to check the state of the entire network in order to confirm transactions and prevent fraud. This offers security, but slows down the overall network as it requires the state of each address to be updated when a transaction is made.
On the other hand, this ecosystem uses “consensus over events”, which prioritizes the transactions themselves over the blocks. In this model, nodes verify the entire transaction history to monitor the current state of the blockchain. While this means the startup is somewhat slower, it also means that throughput is significantly higher while the chain is online. In theory, this would allow this novel blockchain to process over a million transactions to start with, though that number is still theoretical.
What About EOS Mining?
It is not possible to mine the EOS coin, as the project has already launched all of the tokens in circulation (slightly over 1 billion). The tokens are ERC-20 cryptocurrency resting on the Ethereum blockchain, so users can easily exchange ETH for the EOS coin at any exchange that allows it.
What Are EOS’ Advantages?
- Block Producers – The EOS.IO ecosystem is supported by DPoS (Delegated Proof of Stake) consensus architecture, which has been proven on previous projects like Bitshares and Steem. Twenty-one miners or ‘Block Producers’ are elected through a Proof of Stake voting system to process and validate a block one by one to earn a reward. A block of messages that is processed and accepted by a quorum of Block Producers is considered immutable, whereas a block that fails to be validated is simply abandoned. Each round of Block Producers is elected by network members based on performance to minimize influence from bad-actors. This significantly reduces mining costs and promotes a more decentralized verification process. In turn, DPoS reduces the likelihood of chain manipulation.
- Governance – Users of the EOS.IO blockchain are subject to a constitution designed to support a 3-armed governance structure: arbitration for dispute resolution; block producers for maintaining the network; and referenda for putting decisions to a vote. This counterbalanced structure was put in place to ensure that no party can manipulate the network. Block.one even went as far as indicating their commitment to a fully a decentralized ecosystem by handing over the project launch to users on June 1st.
- Usability – The Operating System provides developers with several pre-made tools that expedite the development program. This includes a ready-to-use authentication tool that lets projects set permission levels on their data, different user accounts, and the ability to store user data off-chain. Additionally, EOS offers cloud-based server hosting that covers bandwidth and storage space. Most importantly, the token is free to use, and projects can decide on their own how to handle transaction fees.
The Team Behind EOS
Brendan Blumer and Dan Larimer head the organization behind EOS.IO, as CEO and CTO respectively. Larimer is credited with first developing DPoS consensus, and has several years of experience with blockchain, and much longer in the broader technology field.
Where to Purchase EOS
As one of the hottest and most popular cryptocurrencies, the EOS coin is listed on several of the largest crypto exchanges, including Huobi, Binance, OKex, and Bitfinex. However, the coin is also listed on several smaller exchanges, making it easy to find for any interested investor.