EOS is a next-generation blockchain ecosystem that continues to receive heavy media coverage for its record-breaking ICO and unique characteristics. Importantly, the EOS.IO ecosystem entered the market with the goal to simplify the programming and integration of smart contracts and the development of decentralized applications (Dapps).
One of the most amazing aspects of the EOS.IO platform is that it virtually eliminates transaction fees through its unique structuring. Additionally, the platform is hugely scalable. Reports confirm that EOS.IO can outperform major credit cards such as Visa in terms of transactions per second. In this way, EOS provides the perfect foundation for Dapp developers.
Dapps are protocols designed to function across decentralized networks such as tor or blockchains. These applications differ greatly from their centralized ancestors because they require no centralized support to operate. Dapps rely on a set of standards to ensure interoperability within the sector. In this way, Dapps provide the world with a more inclusive approach to the market.
How will EOS work?
EOS (like many other smart contract blockchains) is often referred to as the “Ethereum Killer”. What this means is that it can do everything that Ethereum can, and even more! So, I thought it would be a good idea to compare the two…
Firstly, as we have already established that both Ethereum and EOS are capable of hosting dApps, which are supported by smart contracts. However, the key difference is the amount that each network can process at any given time.
This is called “Scalability” which is one of the most important things to consider when analyzing the potential of a blockchain.
How to Buy EOS?
Purchasing EOS is easy. Once you have purchased Bitcoin, you can then head over to any of the major exchanges that trade EOS such as Binance, Poloniex, or KuCoin.
Here you just need to locate a BTC/EOS trading pair. Then, you can trade as much BTC for EOS as you desire. It only takes seconds to complete this trade and you can store your EOS on a variety of different wallets.
- Less Risk of Hard Forks: During a hack on an Ethereum-based organization called DAO in June, 2016 that led to the theft of tokens, Ethereum’s entire blockchain was temporarily shut down. There was much debate on how to handle the situation and the community ended up splitting in two: one side didn’t want to return lost funds, while the other side did. The result was a hard fork producing two Ethereums (Ethereum and Ethereum Classic). This is not likely to happen with EOS since if a dapp is found to be buggy, it can simply be frozen by block producers until it’s fixed.
- Ease of Use for Developers: EOS incorporates a web toolkit for simplified development of dapps, along with database schemas, role-based permissions, and other built in functions that make creation of dapps easier.
- Governance: EOS has a governance structure based on a constitution of mutually accepted rules that govern the system, along with a process for modifying those rules if needed via voting processes. Many cryptocurrencies have a very difficult time reaching consensus on what to do in a given situation (e.g. the above example with Ethereum), but EOS seems to have an elegant solution to this problem.
- Self-Sufficient: EOS blockchains will generate 5% inflation per year, which will be used to reward block producers for confirming transactions, as well as to fund three community-chosen dapp proposals per year.
- Free Transactions: Ethereum and most other blockchains require users to pay fees to send transactions. EOS, on the other hand, uses the aforementioned block-producer model to determine how fees will be paid depending on services offered and charged for by dapp developers.
- Fast Transactions: As already discussed, EOS will use parallel processing that can perform potentially millions of transactions per second, and at least 50,000 out of the gate according to block.one.
- ICO Friendly: Just as with Ethereum and other smart contract platforms, ICOs can be hosted on an EOS blockchain. Given EOS’s focus on user-friendliness, however, EOS will likely offer dapps to streamline ICO smart contracts and tokens.
- Many Competitors: Besides Ethereum, EOS has many other competitors, including NEO, Rootstock RSK and RChain. There may be room for more than one successful platform of this type, or there might not.
- No Guarantee Tokens Will be Honored: Although it is likely the EOS community will strive to implement a blockchain that supports the Ethereum-based EOS token holders in being credited with EOS tokens on the new chains, this is not legally mandated. Since block.one is not launching an initial blockchain, it will be up to the users to ensure this happens.
- Potential Launch Chaos: No one knows what will happen when EOS launches and how blockchains will form and find their footing. Will competition hurt the community, or help it? Will one central chain form, or will many smaller chains form, with none of them having enough resources to make a useful ecosystem? Nothing like this has ever been done, so nobody knows.
- Potentially More Centralized: Some argue that EOS is more centralized in its DPOS consensus protocol than other platforms such as Ethereum. Since it relies on only 21 block producers to confirm all transactions, this concern certainly seems valid, since ultimately, this would likely lead to a few large resource provider data centers running the network. Another point of concern for some is that regular users can’t audit the system unless they plan to personally run a full node. Finally, EOS relies on voting, which historically has resulted in low voter turnout in other systems, which could lead to further centralization with fewer people giving input on the direction of the platform and blockchain(s).
For their part, block.one have argued that EOS blockchains will still be less centralized than Bitcoin and Ethereum, which have only a few major mining pools that confirm the entire blockchains at the moment.