Created by BitShares and Steemit co-founder and serial crypto entrepreneur Dan Larimer, EOS is the native cryptocurrency of the EOS blockchain. It was developed with the goal of encouraging efficient and scalable decentralized applications (dApps). The blockchain is comprised of operating system-like services and functions that work similarly to the Ethereum platform.
Block.one announced EOS back in 2017 and in 2018 released it as open Source software. EOS aims to be better than Bitcoin by providing greater scalability with its delegated proof-of-stake (DPoS) consensus mechanism.
According to the project’s white paper, this will allow EOS to process transactions more quickly thanks to its 21 block producing nodes. What this means is that the network has to reach consensus between 21 nodes to produce a block, in comparison to the millions of nodes with traditional blockchains and the Ethereum network.
EOS has Four Distinctive Features
Firstly, transactions on EOS are quick: it takes about half a second to confirm a transaction and about 2 minutes to finalize it. Secondly, transferring EOS tokens is free since there are no fees associated with mining. Thirdly, EOS is the only token that can be used to obtain resources that developers need to run their apps. These include CPU, NET and RAM.
Lastly, the tokens play a very important role in governance. Only people who hold the EOS token can vote for the block producers who run the network.
One of the major differences between Ethereum and EOS is that programmers can develop dApps using any web assembly programming language in EOS (eg. C++, Java, Python, etc,) whereas in Ethereum, they have to use the platform’s native programming language, Solidity.
In addition, EOS uses a delegated proof of stake (DPoS) consensus model which is different from Ethereum’s proof-of-stake (PoS) model.
How Does EOS work?
Launch & Issuance
After 1 year and 350 periods of distribution, Block.one completed its initial coin offering of EOS in June 2018 and token distribution of 2 million tokens daily. Over 4 billion dollars was raised from the ICO over-the-year, with 1 billion tokens sold. 80% of which were sold to the ICO participants and 10% sold to the EOS team.
Network Design & Security Model
EOS uses a delegated proof of stake consensus mechanism to secure its network. EOS uses real-time voting as well as a social system of reputation to achieve consensus in order to determine who can create the next block of transactions in the blockchain.
All EOS token holders can determine what happens on the network in proportion to how many token their accounts hold. This voting system has been seen as controversial in crypto circles.
In order to vote, users must first stake tokens for 3 days and users who stake their tokens cannot sell their tokens which puts them at a risk of losing money should the price of the token change within that time.
EOS tokens have no maximum supply limits. The delegated proof-of-stake model utilizes inflation to fund transactions and pay block users.
A 5% cap on the inflation rate has been agreed upon and is expected to exist forever. What this means is that at the conclusion of the ICO, when the 1 billion tokens were issued, a maximum of 50 million new tokens would be created within the year after.
According to the white paper, EOS transactions can be confirmed with 99.9% certainty within an average of 0.25 seconds from when the broadcast started.
The EOS software requires that every transaction should include part of the hash of a recent block header to be able to prevent a replay of a transaction and also to let the network know that a particular user and their stake are on a particular fork.
EOS will be Listing on Atomars
EOS (EOS) has announced that it will be listing on Atomars on the 14th of November and trading pairs will be: EOS/BTC, EOS/ETH, EOS/USDT, EOS/USDC, EOS/PAX, EOS/TUSD, EOS/DAI
Atomars is a new digital assets trading platform on the cryptocurrency marketplace that is currently bridging the gap between fiat and cryptocurrencies. The Atomars platform is a fast, safe, secure and user-friendly platform that seeks to make trading easy for everyone. You can find many of the major cryptocurrencies such as Bitcoin, Ethereum, Litecoin, DASH, USDT and more on the platform. Their web and mobile apps makes it easy and fun trading on the go.