What is EOS?

What is the cryptocurrency EOS

The History of EOS

The EOS ICO was developed by a private-owned company called block.one and was based on the white paper published in 2017. EOS was officially launched as an open-source software on June 1st, 2018 by Dan Lariner who is also the founder and creator of platforms such as Steem and Bitshares.

Initial Test Releases

The original EOS test net was called Dawn 1.0 and it was released in September 2017. The Dawn 2.0 version was published on December 4th, 2017, while the third version came out on January 25th, 2018. The fourth version called the Dawn 4.0 was published on May 7th, 2018. The official EOS.IO Dawn 1.0 was launched on June 1st, 2018 and it is currently operating under the 1.1.4. version.

Token Distribution and Funds

According to the CEO of block.one, Brendan Blumer, a total of one billion dollars was invested in the funding of the project. Upon the initial release of EOS, over one billion tokens were distributed to promote the cryptocurrency and encourage users to engage with it. Later on, Blumer confirmed that a total of four billion dollars was raised by block.one and used to fund the development of EOS.IO. This large distribution of tokens made it possible for anyone to launch the EOS blockchain.

The Concept of EOS.IO

The creator of EOS, Dan Lariner, intended to build and launch a smart business-oriented platform where companies and businesses were connected and could enable fast transactions between one another. Faster transaction are an important aspect of cryptocurrencies and, therefore, it wasn’t difficult for the developers to find a place under the spotlight.

Specifications of EOS

Ticker Symbol EOS
Founder(s) Daniel Larimer
Date of Release 31 January 2018
Consensus mechanism Proof of Stake
Hashing Algorithm Asynchronous Byzantine Fault Tolerance
Maximum supply Infinite
Average Block Time 500 MS
Mining / Staking reward n/a
Average blocksize n/a
Next Block Halving n/a
Smart Contracts Yes

The Price of EOS

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Unique Aspects of EOS

What makes this cryptocurrency unique is the EOS ecosystem that contains the EOS token and the EOS.IO platform. The EOS token is the cryptocurrency used within the EOS network. However, the EOS.IO element is more complex and it serves as a type of operating system that manages and controls the entire EOS blockchain network.

Horizontal and Vertical Scaling

The EOS.IO allows vertical and horizontal scaling of decentralized applications, which is the main concept of the network. Horizontal scaling refers to adding more machines to your network (in this case blocks to the blockchain), whereas vertical scaling means adding more power to the existing machine to achieve the desired result. Both of these techniques combined allow for faster transactions within the network.

Holding EOS Tokens

Many decentralized networks require users to spend specific coins to be able to use the network’s resources. That’s where EOS stands out because instead of making the user spend the coins, the network requires them to hold EOS tokens. Thus, only EOS token holders are able to use the network and build or run decentralized apps on it. If a token holder is not utilizing the network’s feature, they can easily rent their bandwidth to others who want to use EOS.IO to build blockchain-based apps.

Solving Common Blockchain Issues

Unlike blockchain-based networks such as Ethereum, EOS.IO focuses on solving common blockchain issues. More specifically, the platform aims at solving the problems of speed, scalability, and flexibility within the blockchain. The most common problems within decentralized app ecosystems include limited availability of resources, constrained network, slow transactions, and limited computing power. EOS.IO aims to provide more scalability and flexibility to tackle these issues.

How Does EOS.IO Solve These Issues

Developers claim that the EOS.IO network is capable of supporting thousands of decentralized apps without causing performance issues. They achieve this level of efficiency through the use of parallel execution and asynchronous communication. Parallel execution is the network’s ability to include multiple resources to execute a single operation in order to achieve a better result. Asynchronous communication within the network is the process of transmitting data without using an external clock signal. This allows the data to be transmitted intermittently.

Why Use EOS?

EOS.IO offers more budget flexibility in the development and management of decentralized apps. The system eliminates transaction charges by allowing developers to utilize the network’s resources in proportion to their stake. In other words, there is no standard pay-per-transaction system here. That way developers can manage their budget more efficiently.

Multiple Usability Features

The EOS.IO platform offers features that make the use of the network extremely simple. For example, the platform uses a web tool kit for interface development, along with features such as self-describing database and declarative permission schemes. These features make it easier to create and manage apps through the platform.

There Is No Mining Concept

What’s unique about this system is that it doesn’t have any mining concepts. Instead, there are only block producers who generate the required amount of blocks to get rewarded with EOS tokens. The value of each created block depends on the median value of the expected pay, which is published by all block producers.

No More Than 5% Annual Inflation

Since it would be easy to abuse this kind of a system by requesting higher pay, the developers included a mechanism that limits producer awards. Thanks to this mechanism, the total annual inflation cannot go over 5%, which helps maintain a steady value of the coin.