What is EOS?
EOS is a decentralized blockchain-based platform that enables the development, hosting and execution of industrial-scale decentralized applications. It can provide secure access to businesses and individuals to create their own dApps. EOS has the ability to host data, provide access rights to the data, and manage dApp usage. Link its dApps to the internet and make permission available.
Launched in June 2018, Block.one, which developed the EOS.IO (the open-source software used on the network), raised $4.1 billion in cryptocurrency through the offering.
Development of EOS
The company behind EOS is called Block.one, founded by Dan Larimer and Brendan Bloomer, who are both massive supporters of crypto technology. Among Larimer’s other accomplishments is the creation of Steem, a social blockchain that rewards users for sharing content and BitShares, which is a decentralized peer-to-peer platform for trading cryptocurrencies.
In the EOS.IO, actions work according to the communications model. The user invokes an action by sending a piece of information to nodeos. The term action refers to one operation while the term transaction refers to a group of actions processed together. Once EOS places the code in the blockchain, the smart contracts are made available to all users. Users can initiate changes or correct errors once there is a majority consensus.
As a result of their collaboration with consultants around the world, the EOS team is able to focus on specific business challenges and develop effective solutions on the basis of blockchain implementation in their system.
How does EOS Work?
Similar to Ethereum, EOS facilitates the hoisting of dApps and increases the number of transactions the network is able to process at any given time. EOS’ scalability improves its position in blockchain analysis. To make EOS more viable, a new consensus model called Delegate Proof-of-Stake (DPOS) was used. It works on an ownership model with users owning and using resources proportional to their stake rather than paying a fee for every transaction. The EOS platform makes it possible for users to rent or delegate their share of resources to others.
These resources include:
- Bandwidth – medium for relaying information across the network
- Computation (CPU) – processing power required to run the decentralized dApps.
- Storage (RAM) – where data is stored on the blockchain.
Technological Features of EOS that make it superior
All dApps installed on the EOS blockchain network are upgradeable. This means that users may add or remove features, deliver code patches, and modify the application logic. It’s possible for programmers to upgrade their apps without being constrained by an interminable bug.
Scalability is one of the main issues that the majority of blockchain networks experience. Despite the fact that centralised systems problems were successfully solved by blockchain technology, these systems could not entirely be replaced.
When Bitcoin experienced a surge in popularity in 2017, the network was unable to support it. People began to recognize the scalability issue as the verification time skyrocketed, and eventually, the bull run in digital assets came to an end. Because each node on the network must reach consensus, alternative blockchains have slow transaction speeds. On the EOS network, this is not true. The EOS blockchain can execute millions of transactions per second because of the DPOS (Delegated Proof-of-Stake) Consensus mechanism.
The benefits of blockchain technology can be leveraged by decentralised applications. However, transaction speeds are slow for these applications. EOS has become the ideal network to launch dApps since this blockchain has the capacity to process millions of transactions per second. EOS dApps have been used to build games, gambling platforms, and social media networks.
All blockchains based on the EOS software generate 5% natural inflation per year. The platform block producers will be entitled to this sum as a reward when they confirm transactions on the platform, as well as the three most popular smart contracts and proposals. This is done to ensure that blockchain can grow, develop, and maintain itself independently of any organisation, or individual.
As you consider expanding and adding to your portfolio, invest with caution in EOS. Cryptocurrencies in general are volatile any capital invested could be wiped out. Make sure you do thorough research and fully understand the risks involved.