EOS (EOS)

Table of Contents:

• What is EOS?
• The history of the EOS project
• Who is behind EOS? Who are the founders of the project?
• EOS vs Ethereum - differences
• Controversy around EOS
• On which exchanges is EOS listed?
• Which wallet to choose for EOS

What is an EOS token?

EOS is a platform for building decentralized applications (dApp). Although it functions similarly to Ethereum, its supporters say it can be far ahead of this blockchain.

EOS's main mission is to become a simple, scalable platform for everyday use. The assumptions show that it is supposed to allow thousands of transactions per second. EOS focuses on providing a comprehensive operating system for decentralized applications by offering user authentication, cloud services and server hosting.

The history of the EOS project

The ICO of the EOS project started on June 26, 2017. Interestingly, it lasted until June 1, 2018. It's 350 days. It can be said that in this respect, the EOS broke the all-time record.

Of course, the public fundraiser did not take so long because there were no people willing to do so. It has all been planned. The creators stated that it is worth giving a chance to more users to get involved in the project.

A total of more than $ 4 billion was raised in the nearly annual ICO.

Who is behind EOS? Who are the founders of the project?

Block.one is behind the EOS project. Brendan Blumer is the CEO. This is quite a gifted person. Already at the age of 15, he developed a website - Gamecliff - dedicated to selling virtual resources in online games. In 2010, he launched the Okay.com platform. It served as a place to share data with real estate brokers in Asia.

In March 2017, he founded the company Block.one. In May of the same year, Brandan Blumer together with programmer Daniel Larimer announced work on a new project - EOS.io. A year later, he was among the richest people in the cryptocurrency space - according to Forbes.

Daniel Larimer has assumed the position of Chief Technology Officer of EOS. Before that, however, he created the BitShares cryptocurrency platform. He is also the co-founder of Blockchain Steem. It should be added that he developed the DPoS consensus algorithm.

What is the EOS cryptocurrency?

The EOS platform has its native cryptocurrency with the same name. Currently, this virtual coin is at the 7th position in the CoinMarketCap ranking (in terms of market capitalization). Its total supply is 1,049,090,785 EOS. In turn, there are 952 390 774 EOS coins in circulation.

The current exchange rate of this cryptocurrency is USD 4.83 (as of 02/10/2020). Its ATH, ie the highest price level of EOS, reached on April 29, 2018. It was then $ 22.89. This cryptocurrency can be used to run applications on the EOS network. So it is essential for people who want to use this blockchain.

EOS vs Ethereum - differences

Consensus mechanism

The first significant difference between the EOS blockchain and Ethereum concerns the consensus mechanism. While Ethereum uses the so-called Proof of Work (PoW) and in the future intends to convert to Proof of Stake (PoS), EOS uses Delegated Proof of Stake (DPoS).

The PoW algorithm is also found in Bitcoin. Miners use special devices called cryptocurrency miners to mine cryptocurrencies such as BTC and ETH. To solve complex math puzzles, however, they need a lot of computing power. Due to its energy consumption, Ethereum intends to switch to PoS in the future.

In the case of PoS, there is no mining process (cryptocurrency mining). The blocks are verified and confirmed by validators. Their voting power depends on the amount of the deposited cryptocurrency.

In turn, the delegated proof of the DPoS rate was invented by Daniel Lalimer (CTO of the EOS project). In this mechanism, the user with EOS coins cannot validate the transaction himself. Instead, it votes for the people who should do it. The elected delegates were named as block producers. Their tasks include verifying transactions in exchange for prizes. At EOS, 21 block manufacturers are responsible for network security. 

Transaction costs

Users do not incur any transaction fees on the EOS network. This project does not aim to become a decentralized computer in the world, but a decentralized operating system. EOS cryptocurrencies perform functions similar to toll stations. They give you access to resources such as bandwidth and RAM.

Due to RAM being a scarce resource, the user does not get it automatically by stacking. He can purchase them on the market intended for this. Every time someone buys or sells RAM, there is a 0.5% fee on both sides. These fees are then incinerated (removed from the ecosystem). It therefore discourages speculative marketing.

The internal market ensures that RAM is always available. Its price is based on supply.
The developers of EOS did not want their cryptocurrency to lie idle on their accounts. Therefore, members of the network who have not used it for a period of 3 years are deleted.

In the case of Ethereum, users pay miners in the so-called gas. Everyone has to pay for the calculations made. You can trace them on Etherscan.io. The transaction fee is simply the gas limit multiplied by the gas price. The whole mechanism is described in more detailright here . 

Network scalability

When it comes to the number of transactions per second, both blockchains face a big challenge. However, this clash is won by EOS. The downside of all blockchains is that they cannot be decentralized, scalable, and secure at the same time. In this case, Ethereum focused on security and decentralization, while EOS chose scalability and security at the expense of decentralization.

Controversy around EOS

This project is largely criticized for its central nature. There is a so-called arbitration tribunal in EOS, which can freeze user accounts at any time. He was also accused of insufficient technical reliability for such a large amount of capital raised during the ICO. A wave of criticism also fell on the vision and implementation of the project.

On which exchanges is EOS listed

EOS is listed on over 117 cryptocurrency exchanges. The largest trading volume of this cryptocurrency is visible on Lbank, Bkex, Coineal, Hubi and Coinbene. They are not reputable platforms, what is more, their names are very similar to popular platforms, for example: Coindeal, Huobi and Coinbase. This, in turn, may be suspicious. 

Below are some examples of reliable exchanges on which EOS is listed.

Which wallet to choose for EOS?

Please note that EOS is no longer an ERC-20 token. It is a cryptocurrency with its own blockchain. For this reason, it cannot be stored in Ethereum dedicated wallets. Here are examples of cryptocurrency wallets that you can assign EOS to.

Author:  Karolina Kropopek