What is EOS?

Crypto 101: What is EOS?

What is EOS? This token is a native cryptocurrency of the EOS network. It has backing from a company known as Block. They involve in several blockchain and business projects. In terms of market share, EOS’s current rank at 11th, at the time of writing. The coin hit its all time high at the end of April 2018 reaching a price of $22.89. Before we dive deeper into the usage of the token, we should talk a little about the history of the token. 

The token is a relatively new token as the first start for its ICO was back on June 26th, 2017. The ICO ran until June 1st of 2018 marking the ICO as the longest of all time! This was done to ensure that the public would all have a chance for involvement and to purchase some EOS tokens. 

The ICO was very successful for EOS as it was able to raise an equivalent of $1 billion dollars making it one of the most successful ICO’s of all time. After the ICO, a release of 700 million tokens was put into the market. This makes up 70% of the total supply of the tokens. As of right now, there are currently 900 million tokens in circulation. The success of this crypto can’t leave behind the team behind the token. So the token is run by a team with a lot of experience, that includes Daniel Larimer, co-founder of BitShares and Steem. Many of his projects on cryptocurrency are now worth up to billions of dollars! He also was on the development team for the concept of delegated Proof of Stake which is used widely in the Blockchain network. 

What's the purpose of EOS?

Unlike most tokens, the EOS tokens are mainly held by developers which will allow developers to be eligible in using the resources in the network and build/run dApps. Users who hold the tokens and do not run any apps can provide their bandwidth to other users that may need it. 

Now you may wonder, how can you get this token then? You cannot mine EOS like Bitcoin or Litecoin. The tokens are generated by block producers who generate a required number of blocks and get rewarded for each new block that is produced. So the block producers are able to ask for a figure for their pay that they desire, and the amount of tokens that they create is dependent on the median value of the pay they expect published by all block producers. 

Of course, you’ll probably think since block producers have so much flexibility then they must be able to always ask for higher pay right? True, so in order to resolve this issue, there is actually a mechanism in place that caps the producer’s rewards in which the total annual hike in token supply must not exceed 5%. Moreover, those who hold the tokens also have the ability to vote out block producers who demand more than necessary. 

In addition, if there is an increase in storage, there will also be more blocks that will be in demand allowing block creators to gain higher pay which can more easily receive approval by token holders. If there is a decrease in storage demand, inflation of tokens will lower, hence leading to a smaller loss of value of the EOS tokens. 

Distribution process:

Date # of Tokens Distributed The Process
June 26, 2016 to July 1, 2017 200 million (20%) Distributes during a five day period
Currently 700 million (70%) Distributes on a basis of 2 million per day for 350 days
Future 100 million (10%) Distributes over a 10-year period at 10 million tokens a year

Storage:

The EOS tokens are quite flexible when it comes to storage. You can store EOS in wallets that include Ethereum Wallet, MyEtherWallet, and Metamask. The token also widely trades on exchanges like Bitfinex and YoBit.

How much are EOS Tokens worth?

Unlike most currencies, EOS token has a special usage and is not like Bitcoin or Litecoin which is only held as a hedge to financial institutions. 

Therefore, it is hard to place an exact value on the token. However, in terms of the current market value of the token, it is currently at $2.63, at the time of writing.

EOS.IO? The EOS Token Platform?

Many of you have probably heard of blockchain and how revolutionary it is to all existing industries. EOS.IO claims itself as the MOST powerful blockchain system in place for decentralized applications. The platform allows the creation of dApps at a speed unseen before. You can think of the EOS platform being quite similar to the Ethereum platform. 

The main founders believe that there were aspects of the Ethereum network that could have improvements. As the founders state, they hope to create a token that would be able to conduct MILLIONS of transactions in a matter of seconds with no fees. In addition to that they hope to create a platform that is flexible for users and developers to build applications. So the platform also hopes to support all types of dApps, dApps can’t even implement with parallel algorithms due to sequentially dependent steps. Hence, the platform should be able to support fast sequential performance and high volumes. 

What is EOS.IO?

EOS.IO is an open-source blockchain protocol with leading transaction speed and flexible utility. The purpose of the protocol is to facilitate The introduction of this protocol was back in May 2017 by Dan Larimer and Brenden Blumer. The protocol has since been widely seen as the de facto standard for blockchain platforms for businesses across the globe. The platform’s creation was done by Block.one, a global leader in the blockchain software industry. So the company hopes to use the project to solve issues of scalability, speed, and flexibility that often becomes a bottleneck in the blockchain technology systems.

With the continual growth of dApps, the availability in the network is becoming increasingly scarce. This would often result in problems like network congestion, false transaction, spamming, and a limit to computing power across the network. Through EOS.IO’s revolutionary technology, users are able to enjoy the benefits of the free system while also taking advantage of the technology. EOS.IO provides users with flexibility when it comes to the development and maintenance of dApps.

The Features of EOS.IO:

There are more than 52,000 Facebook likes that happen per second. In the financial industry, processing over 10,000 transactions per second. As you can see that there is a clear demand for faster systems being able to transact millions of transactions per second like EOS.IO. 

Unlike Bitcoin, EOS.IO uses Delegated Proof-of-Stake (DPOS), a more high-level consensus algorithm using within the blockchain network, to validate blocks in the network. This algorithm is able to make more flexible and instant high-level decisions that include rollback, freezing, bug-fixing. All of this is done through a majority basis among the stakeholders of ther token. 

So, how does the transaction process work on the EOS.IO platform? Unlike the Ethereum platform that uses the pay-per-transaction model, the EOS.IO platform eliminates the transaction charges. Furthermore this ownership structure allows free usage for the user while also allowing developers to utilize resources dependent on their stake. This process makes it much easier for app developers to determine hosting costs and more effective monetization strategies.

What is the difference with EOS.io and the Ethereum Platform?

EOS.IO in comparison to Ethereum definitely seems much more impressive. With its initial ICO of being a record breaking $4.1 billion in 2018, it has yet to live up to its hype. However, this still demonstrates the tremendous potential of the platform and its capabilities in the future. Ethereum has grown more than 10,000% in value and reaching an all-time high of $130 billion in market capitalization. Moreover, hundreds of cryptocurrency tokens have been created on the Ethereum blockchain which is home to THOUSANDS of dApps. This makes it difficult for EOS.IO to beat in a short period of time. 

The future of EOS.io

Ever since the initial introduction of the EOS.IO 1, the project has met a lot of success. However, with the increasing need for speed and increasing demand, Block. One has introduced EOS.IO 2. EOS.IO 2 is similar to EOS.IO but is made faster, simpler and also more secure to build on the platform.

The new EOS.IO 2 will include a high-performance WebAssembly (WASM) engine that will be receive utilization in blockchain applications. So this new engine will facilitate the usage of system resources and processing smart contracts with substantial gains in performance.

Thanks for reading Crypto 101: What is EOS? If you enjoy this article don’t forget to subscribe below and checkout some of our other content!

Newsletter

What is PersistenceOne?

What is PersistenceOne? One of the biggest concerns that people face today is the increasing financial debt of many countries. A lot of people are

Read More »

What is UTU?

What is UTU? In Swahili “UTU” means humanity. It’s also the principle behind UTU the company, which puts people first in their platform that turns

Read More »

Digital Week X Genesis Block

In May 2020, Digital Week Online hosted its first successful global gathering attracting 170+ top-level speakers, 60+ professional investors, and 1,500 attendees! During this time

Read More »

What is Trade Mining?

If you are familiar with the DeFi space you have probably heard about Yield Farming. However, Trade Mining might be a new concept to you.

Read More »

Resources