What is EOS Coin?
EOS Coin aims to create the world's most powerful infrastructure for decentralised applications. Find out how this is planned in this report. EOS is a blockchain technology platform that focused on the use of EOS Coin tokens. The EOS Coin was launched last summer after a successful ICO.
Today, the token has a market capitalisation of more than 4,500,000,000 US dollars, making it one of the top 20 cryptographic currencies by market capitalisation. The EOS cryptocurrency is similar to Ethereum.
Like Ethereum, EOS cryptocurrency is an intelligent contract hosting platform. The platform was designed for open source projects and consumer-oriented decentralised apps (DApps).
The goal of EOS Coins is to acquire Ethereum's market share while at the same time promising a more scalable blockchain with better user-friendliness for large companies. In short, EOS is a new version of the Ethereum virtual machine.
In contrast to Ethereum's virtual machine, which works like a distributed global supercomputer, EOS is based on a distributed OS-like construct in which developers can create apps. The platform was created by the team at Block.one.
How does EOS work?
EOS is a platform on which developers can create decentralised apps. EOS token holders can perform the EOS mining process to finance application development in the EOS network. In the meantime, users can participate in EOS apps free of charge, without having to buy EOS tokens.
Instead of charging users a fee for actions on the EOS network, EOS's system ensures that the bandwidth, computing power and storage capacity are allocated proportionately to the EOS Mining State quantity in an application.
An important part of the EOS is the Delegated Proof of Stake (DPOS) consensus algorithm. It is designed to meet the performance requirements of distributed apps on the blockchain, including millions of users.
EOS Blockchain produces new blocks every 3 seconds. A producer is entitled to produce one block at any time. If the block is not produced at the scheduled time, the block is skipped.
Blocks are produced in rounds of 21 pieces. At the beginning of each round 21 unique block producers are selected. The first 20 are automatically selected in each round and the last producer is selected in proportion to the number of votes compared to other producers.
The selected producers are moved using a random number (pseudo-random from block time). This mixture ensures that all Stake Miners maintain a balanced connection to all other miners.
One of the unique advantages of EOS Blockchain is that there are no stems. This is because block producers can work together to produce the blocks instead of competing with one another. If there is a stem, the consensus automatically switches to the longest chain.
EOS also has another useful feature called Transaction Proof of Stake, or TaPoS. EOS's software requires that each transaction contains the hash of a recent block header. This hash prevents a transaction from being repeated on the stems that do not contain the referenced block.
The hash also signals to the network that a specific user is on a particular branch. The EOS White Paper discusses further technical details on TaPoS and EOS's unique delegated proof of stakes.
EOS Coin highlights the following core functions:
Scalable: EOS Coin can support thousands of distributed apps on a commercial scale. Parallel execution, asynchronous communication and other functions increase the scalability of the platform. EOS can also separate authentication from execution.
Flexible: EOS Coin offers generalised role-based permissions and the ability to fix and repair corrupted applications. There's also a web assembly platform that's a flexible option for distributed app developers.
Usable: EOS Coin has a web toolkit for the development of interfaces with self-describing interfaces, self-describing database schemata and a declarative authorisation scheme.
Equal Opportunities: EOS Coin tokens have no predetermined price; the price of tokens is determined by the market demand. This is intended to imitate mining without giving large customers unfair advantages. Simply put, it's more democratic.
Broad Distribution: The EOS Coin tokens are distributed over a period of 341 days. This should give the community enough time to familiarise themselves with the project and to participate in the distribution. Since November 2017, around 560 million EOS have been circulating with a total supply of 1 billion EOS.
What problems does EOS Coin try to solve
Why do we need EOS? What unique problems is the blockchain platform trying to solve? In principle, EOS's goal is to create a blockchain that can be used for scalable commercial purposes.
Today's leading blockchains, including Bitcoin, Ethereum, BitShares and others, are known for their scalability and durability, but also have major problems.
These blockchains can support tens of thousands of transactions per second (if not more). However, they are burdened by high fees and limited computing capacity.
In order for the blockchain technology to be widely used, EOS must make certain changes, including support for millions of users:
“Companies such as eBay, Uber, Airbnb and Facebook require blockchain technology capable of managing tens of millions of active users every day. In some cases, applications may only work if they reach a critical mass of users, so it's critical for a platform that can handle a large number of users”.
A problem with today's blockchains is the fact that users have to pay for services on certain platforms. Users of social networks are not used to paying for such services.
Only a few people are willing to pay for online access to a platform – regardless of whether they use flat or cryptocurrencies.
Who is behind EOS?
The development of the EOS project is led by the Block.one under the leadership of Brendan Blumer as CEO. Daniel Larimer, known for creating BitShares, Steem, and delegated evidence for the consensus of the stakes, is CTO.