EOS one of the most talked coins.
Cryptocurrencies are the talk of the Internet town nowadays. Currently, we have over 1300 cryptocurrencies in operation. While some of them are there just to make money for their creators, some are useful in their own ways.
For example, Bitcoin taught us how to create a fully functional cryptocurrency.
Vitalik Buterin introduced the concept of smart contracts and decentralized applications using Ethereum. While these two are not perfect by any means, they provide some crucial functionalities.
But a team of blockchain enthusiasts is in the process of eliminating all the shortcomings of Bitcoin, Ethereum, and most other altcoins. They are creating a blockchain based software called EOS.IO which will revolutionize the whole industry of decentralized applications.
- 1 What is EOS About?
- 2 Problems With Bitcoin And Ethereum
- 3 Features Of EOS
- 4 The Team Behind EOS
- 5 What Makes The EOS ICO So Special?
- 6 How To Buy EOS
- 7 Final Words – What To Expect From EOS
What is EOS About?
To be precise, EOS is a blockchain based decentralized operating system just like Ethereum. But hypothetically it is better than Ethereum in many sectors, which I will discuss later. EOS is not only a cryptocurrency protocol but a distributed computing system which allows the creation of smart contracts and decentralized applications.
Majority of the concepts of the whole EOS platform still exists on paper, only a handful of features have been implemented till now. But one thing we know for sure is that EOS will allow the creation of “Commercial Scale DApps“.
Moreover, businesses will be able to create these decentralized applications in an environment similar to web-based applications. Thus making the jump from a typical web application to a decentralized one much easier.
EOS is employing an operating system-like construct which will provide all the necessary core functionalities to create a decentralized application.
Currently, EOS is in ICO stage – more details about the ICO later.
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.
Problems With Bitcoin And Ethereum
Before we talk about the features of EOS, let’s talk about the shortcomings of Bitcoin and Ethereum. This will help us in understanding why we need EOS.
Satoshi introduced Bitcoin to the masses in 2009, 8 years ago. So naturally, Bitcoin’s concept is outdated. And it doesn’t meet the newest industry standards of the blockchain technology.
The most prominent problem with Bitcoin is that it is literally “stuck”. It is in a stage right now that the developers cannot upscale it any further. Plus it doesn’t have the support for specialized programming languages for creating smart contracts either.
But don’t take it the wrong way and assume that you cannot create smart contracts using Bitcoins. You can actually create smart contracts using Bitcoin’s blockchain too, but it is a bit complex.
For example, Particl created an e-commerce platform which uses Bitcoin’s blockchain.
In that regards Ethereum has the upper hand, at least for now. Ethereum is more scalable than Bitcoin and it has its own programming languages too. Using those languages a blockchain developer can create and deploy smart contracts pretty easily.
That’s why right now the majority of smart contract and decentralized application projects are created on the Ethereum platform. Some of the popular decentralized applications created using Ethereum include Ethereum Name Service, Etheria etc.
Majority of the Initial Coin Offering projects are also created using Ethereum too. Even EOS also uses Ethereum for conducting their ICO.
But the problem with Ethereum’s smart contracts is that it is pay to use. And there’s no way around it either! Paying for using a decentralized application makes sense only in a select few scenarios.
But consider a blogging platform or social media platform that is pay to use. While the other way round may work, a pay-to-use social site will not.
Features Of EOS
As per the whitepaper, the main two features of EOS is its ability to scale both horizontally and vertically, and the ability to create DApps that will eliminate user fees.
But apart from these two, the development team is also considering a handful of other features. So let’s talk about the features in detail.
Decentralized Operating System
As I mentioned above the EOS.IO software will act like an operating system, a decentralized one to be more specific. Correct me if I’m wrong, but I believe this is first of its kind.
This decentralized operating system-like architecture will allow developers to create and deploy decentralized applications efficiently.
The applications can be created using standards similar to current web-based applications. The decentralized OS will take care of critical tasks like authentication, database management, CPU management etc.
The software will reside in servers and developers will be able to use the resource if they have a stake in the economy. In fact, the EOS team have already created a working prototype called Web Assembly to demonstrate the flexibility of the protocol.
Elimination Of Fee
The EOS platform can theoretically eliminate user and developer fees by employing an ownership model. Instead of paying for the resources used, the developer will need to have a stake in the EOS economy.
The amount of this stake will determine how much resource an user is entitled to.
This is a huge change over Ethereum’s smart contracts. Where you have to pay hefty fees to use the resources.
Parallel Processing And Asynchronous Communication
As EOS will have support for parallel processing and asynchronous communication it will be able to handle millions of transactions per second.
For example, Ethereum is able to process 15 transactions per second and Ripple which is often considered to be the fastest among all have the allocations to process 50000 transactions per second.
This will make the whole EOS platform more scalable than Ethereum and Bitcoin.
Delegated Proof Of Stake And Constitution
The concept of Delegated Proof of Stake or DPOS is nothing new. We have already seen a working version of DPOS in Steem’s blockchain.
In Proof of Work cryptocurrency like Bitcoin, miners are the one responsible for verifying transactions, creating blocks, adding the blocks to the blockchain and creating new units of the currency or BTC.
But in PoS there are no miners, instead, there are validators which are chosen against their stake in the cryptocurrency platform.
Similarly, in DPOS the network chooses multiple “witness nodes” as representatives of the whole network to make certain decisions without polling the entire network.
This process is way faster and consumes a lot less energy. This also allows rollbacks and bug fixes rather than carrying out tedious hard forks.
The EOS decentralized operating system will also have some sort of constitution in place. It will be a set of rules agreed upon by the majority and it will be linked to all the blocks in the EOS blockchain.
Currently, the EOS platform will allow 5% inflation every year, which is sustainable enough.
Also, instead of binary codes, smart contracts on EOS will use human readable code. We don’t have much detail about this, but we can hope that this is going to be something unique.
Currently, when it comes to ICO projects and smart contracts, Ethereum is undoubtedly the market leader. EOS will also have its own tokens like ERC-20 tokens of Ethereum. So if everything goes as planned than EOS may take the place of Ethereum.
There is no official description of the acronym EOS but most people prefer calling it “Ethereum On Steroid”. And a detailed study of the features of EOS reveals why.
The Team Behind EOS
The team behind EOS is called block.one. block.one is a team of blockchain enthusiasts which specializes in creating blockchain applications.
The current CTO of block.one, Dan Larimer, is a very familiar face in the blockchain space. He created the first-ever decentralized exchange BitShares and a blockchain based blogging platform Steem.
Now he and CEO Brendan Blumer are leading the EOS project from afront. So we can expect something really big!
What Makes The EOS ICO So Special?
The ICO of EOS is special on so many levels. It is based on Ethereum so it uses ERC-20 tokens. Unlike most ICO projects which last somewhere between several hours to a few days, block.one decided that they need to give the early adopters a bit more time.
So that we can make educated choices regarding whether to invest in the EOS project or not.
That is why the EOS ICO will run for almost a year! The ICO commenced on June 26th and during the five days, 200 million tokens were distributed.
EOS will have 1 billion tokens in total, out of which 10% which is equal to 100 million will be kept in reserve by block.one.
The rest 700 million tokens are still being offered on the EOS website.
The distribution of tokens are also unique in itself. In the case of most other ICOs, you get certain percent bonus for your contribution. But in EOS’s ICO you receive tokens proportional to the amount you contribute to the daily pool.
So if on a given day only two people contribute 1 ethereum each, they will each receive 50% of the total tokens offered on that particular day. Each day 2 million tokens are offered and the ICO is on its 159th day now.
How To Buy EOS
So in this article, I am only going to share the process of buying EOS on Binance.
- First of all, create an account on Binance and verify your email. If prompted, set up the two-factor authentication for added security.
- Log into your newly created account and click on the “funds” option from the top menu.
- On the deposit and withdrawal page, deposit either Bitcoin or Ethereum by clicking on the “Deposit” button beside them. Don’t have Bitcoin or Ethereum? No worries, you can buy it on Coinbase with your bank account as well as credit or debit card. Visit Coinbase now to get $10 worth of free Bitcoin when you buy $100 worth of Bitcoin, Ethereum or Litecoin!
- Now that you have funds in your account, you are ready to start trading. Navigate to the trading page by hovering over the “Exchange” option from the main menu and choose “Basic”.
- From the right-hand side, list select either EOS/BTC or EOS/ETH pair, depending upon the cryptocurrency you deposited.
- Under the candlesticks market chart, you will see the order book where you can buy as well as sell EOS.
- In the buy form, enter the amount of EOS you want to buy in case of market order. In case of a limit order, you will also need to quote a price per EOS. So I don’t recommend using the limit option if you are a beginner.
- As soon as you hit buy the order will be placed in the order book and hopefully you will receive your EOS within seconds.
- I suggest using BNB tokens for paying the fees as it will halve the fees. So the extremely low 1% trading fee of Binance will become even lower 0.05%.
Final Words – What To Expect From EOS
Most of the concepts of EOS still exists on paper. So I am really at nowhere to predict the future of the project. But if block.one successfully implements the features then I for one believe that EOS will go far and might even displace Ethereum.
Store your EOS in a safer hardware wallet like Ledger Nano S.
As Ethereum’s smart contracts have higher transaction fees and the throughput is also very low. So we can do nothing but speculate right now.
The team CTO Dan Larimer is a visionary programmer just like Vitalik Buterin, but in my opinion, more experienced. As always Coinsuggest won’t advise you to invest in ICOs.
That is a choice that you will have to make yourself. We can only provide the required information to make an educated choice.