When the first EOS or EOSIO initial coin offering (ICO) was released in July 2017, it sent shockwaves through the blockchain community.
Within its first two years of existence, EOS had already risen to the ranks of one of the top five cryptocurrencies. Intense competition was created for both established players (like Ethereum) and up-and-coming alternatives (like Tron and NEO).
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An overview of EOS will be provided, as well as a discussion of its salient characteristics and what makes it a potentially useful blockchain platform for creating scalable enterprise-level dApps.
What is EOS?
EOS/ EOS.IO is a blockchain platform for building enterprise-grade DApps. This operation is supported by a solid foundation that can handle heavy loads.
EOS’s primary goal is to provide a blockchain platform that is both users- and business-friendly, allowing developers to more easily create decentralized applications (dApps) than on Ethereum.
One of the biggest obstacles preventing blockchain technology from going mainstream is its inability to scale.
For instance, Ethereum’s current transaction pace is quite slow. In addition, users must contribute to the platform’s upkeep by paying the Gas costs if they want to access any of the dApps developed there.
Users won’t engage with a system that charges them at every turn, so this wastes time and effort.
With vertical and horizontal scalability, EOS can provide its applications at no cost to its users (done by block producers).
Plus, it offers a safe and scalable environment where hundreds of transactions can be processed in a single second. It is a secure blockchain platform that can be used to provide many types of web services.
- EOS smart contracts.
- Cloud storage dApps.
- Security measures such as user authentication, etc.
EOS’s creators and backers have highlighted the platform’s most compelling features, which include:
- Takeaway of all associated costs for making a purchase.
- Capable of processing millions of orders per second.
Before diving deep into the EOS platform, let’s get a handle on what makes a dApp platform successful.
What Are The Key Success Factors For A Dapp Platform?
Many aspects can determine the success or failure of a dApp in the mainstream market.
Here is a comprehensive list of what makes a decentralized application successful:
Support for Large User Base
It is essential that the dApp platform can accommodate millions of concurrent users without experiencing any hiccups in functionality.
Unlimited No-Cost Access
Customers using dApp on a blockchain platform should be able to do so without cost and with minimal hassle. If users had to pay to make a purchase, they could think twice before using the dApp again.
Low Latency
The dApp’s latency should be as minimal as feasible for the best possible experience.
Parallel and Sequential Performance
Any decentralized application (dApp) running on a blockchain should support parallel processing to more efficiently divide up tasks and reduce wait times. The decentralized application should also support simultaneous and sequential performances to prevent mistakes like duplicate spending.
Overview of EOS’s Past
To create the EOS blockchain, Daniel Larimer and Brendan Blumer launched Block.One in 2017.
At Block.One, Chief Technology Officer Daniel Larimer, also has an entrepreneurial spirit. He is well-known in the blockchain development community and has previously served as CEO of three different businesses. To create the delegated proof-of-stake (DPoS) consensus mechanism for the EOS blockchain, he was responsible for its design.
Today, Brendan Blumer runs Block.One as its chief executive officer. He previously established one of Hong Kong’s most prominent real estate agencies, okay.com.
In June 2017, EOS’s initial coin offering (ICO) successfully raised $196 million.
How Are New EOS Tokens Created?
To ensure the integrity of the blockchain and the validity of transactions, the EOS network uses a delegated proof-of-stake (DPoS) consensus method, as detailed in the project’s whitepaper.
Within this framework, token holders will have a permanent vote for who will produce new blocks. The holders can participate in block production, and each holder has the chance to lobby for votes from other holders. To participate, token holders must risk losing some of their holdings.
Twenty-one different “stakeholders” are selected from the group. These delegated individuals can generate blocks, and as such, they are rewarded with brand new EOS tokens. For those willing to put up more tokens, the system will select them at a higher rate.
To participate in the platform’s administration, token holders can stake their tokens. Participants in the platform’s governance can earn staking rewards by voting on ideas and shaping the network’s destiny.
How Many EOS Tokens Are There?
The total quantity of EOS tokens that can ever be created is unrestricted. Instead, the protocol can create new EOS tokens at an annual rate of up to 5% of the total supply.
What Makes EOS Unique?
As an alternative to Ethereum, EOS aims to be more powerful, efficient and widely adopted. EOS is designed to process millions of transactions per second, while Ethereum can only process 15 per second. Please keep in mind that this is merely an aspiration.
The growing number of decentralized applications (DApps) on blockchain networks is putting a strain on the system’s meager resources. EOS.IO’s approach is meant to be more scalable, flexible, and user-friendly to solve these issues.
EOS.IO’s Distinctive Features
It is claimed that EOS.IO’s usage of parallel execution and asynchronous communication mechanism across the network will allow it to support thousands of commercial-scale DApps without encountering performance issues.
Independent modules contribute to DApp functionality and further increase efficiency. For instance, authentication is handled independently of execution.
Key usability elements in EOS include a web-based toolset for interface building, self-describing interfaces, database schemas, and a declarative permission scheme. These things simplify the developer’s work when making and maintaining programs.
The EOS Economy
Bitcoin’s familiar mining concept isn’t utilized in the EOS infrastructure. In its place, block producers create the necessary number of blocks and are rewarded with the issuance of additional EOS tokens for each Block they make.
The quantity of tokens generated by a block producer is determined by taking the median of all block producers’ reported expectations for payment.
This function is vulnerable to abuse because it is intuitive that block producers would like to be compensated more. To prevent the token supply from growing by more than 5% per year, a mechanism limits the number of tokens awarded to producers. Voting token holders can remove high-demand block producers from the network.
Each token holder contributes to annual inflation to cover the cost of EOS network file storage, making this approach a useful supplement to EOS storage. Their EOS tokens will be frozen and devalued at inflation rate so long as they are using the network to store a file.
More users mean a greater need for storage space, which in turn means block producers will need to be compensated more for their efforts, leading to inflationary wage increases that token holders will approve of. Inflation will be less of a problem for EOS tokens held in storage if the demand for storage drops.
In addition to Ethereum Wallet, MyEtherWallet, and MetaMask, there are more wallet options for storing EOS tokens. Tokens are liquid and may be bought and sold on exchanges like Bitfinex and YoBit.
What are the EOS dApp use cases?
EOS has been well-received in the blockchain community. Many different programs can now be run on the system. Here, we’ll talk about a handful of them to give you an idea of how broadly they can be applied.
Ubuntu Energy Ledger
Ubuntu Energy Ledger has created a market for eco-friendly power sources using the EOS blockchain. The proposal’s end goal is to offer 4 billion homes in Africa access to clean energy by 2030 at a reasonable cost. Microloans and investors are essential to the community because they allow people to start businesses, build houses, and set Africa on the path to clean energy.
All ebt Food Stamps
To aid low-income communities in resolving difficulties related to financial inclusion and access to healthy food, All ebt has created an EBT virtual card on the EOS blockchain platform. Nearly 45% of Puerto Rico’s population relies on Food Stamps (22% of the U.S. total), including many families with young children, the elderly, and the disabled. But since food stamps can’t be used in virtual stores, they’ve been excluded from modern commerce.
DACTROIT
The flagship product of EOS Detroit is a decentralized autonomous community (DAC) with the codename DACTROIT, which provides communities with the means to manage their own local currency and provide a high-speed internet connection to their members. This exploratory project is designed to illustrate and advocate for new approaches to communal living.
Frequently Asked Questions About the EOS Cryptocurrency.
What Does EOS Stand for in Crypto?
In this context, “EOS” refers to an Electro-Optical System. EOS is a blockchain-based distributed operating system.
What Is the Purpose of EOS?
EOS was developed to facilitate the widespread use of decentralized apps (dApps). Business owners can create blockchain apps that are familiar to web developers with the help of EOS, which offers the platform’s essential functionality.
Will EOS Reach $1,000?
Doubtful. In January of 2021, EOS was trading at a low of $2.63; by May of that year, it had risen to a high of $12.
EOS, like all cryptocurrencies, is subject to price swings. However, few analysts expect the EOS price to reach $1,000 anytime soon.
By the end of 2021, the price is expected to rise to between $18 and $24; by 2022, it might reach as high as $45 USD, according to CoinPedia’s projections. CoinPedia predicts that in five years, EOS’s price may rise to as much as $160, should it form strategic partnerships with startups to improve its blockchain infrastructure and transaction speeds.
WalletInvestor predicts that by the year 2025, the most EOS will cost is $14.
As of 2025, the price is projected to be between $19 and $24 by Digitalcoin.
Midway through 2025, the long-term estimate predicts the price to be about $45 per share.
The Bottom Line
EOS, a blockchain-based network, shows promise but is still in its infancy. Some people don’t believe EOS’s claims of 100,000 transactions per second, and the fact that users need EOS tokens in order to make a transaction could hurt the platform’s popularity.
Like all cryptocurrency blockchains, many investors will continue to be fascinated and captivated by this market in the coming years.
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