EOS is an open source cryptocurrency project developed by block.one, designed to allow horizontal and vertical scaling of decentralized applications (dApps). Horizontal scaling allows for increases in the number of connected devices, while vertical scaling allows the actual processing power of the devices to increase. EOS is written in C++ a popular programming language allowing anyone familiar with the language to start building decentralized apps.
While EOS’s mainnet isn’t online yet, the team makes some pretty bold claims about the capabilities of EOS. Here are some of the features they claim the project has:
- Free transactions
- 0.5 second transactions
- 1 million + transactions per second
- Linear scaling
- Free and near unlimited cloud hosting
The mainnet will be out soon which should give proof to these statements.
On the EOS network, all transactions must broadcast a hash of the constitution as a component of the signature, binding the signer to the contract. In order to update the protocol 15/21 block producers must vote on a change for 30 consecutive days. After successfully doing this, the changes are made to the constitution and signalled for another 30 days. If 15/21 block producers can still agree, the changes are made to the EOS code. This ultimately makes it take around 2 months for EOS to update.
Users on the EOS platform can choose usernames up to 12 characters long. These usernames are unique to each user and unchangeable and can be used instead of addresses to send and receive EOS.
Throughout the year, there were 352 periods where users could purchase EOS. ICO participants would then receive EOS proportional to the whole during the contribution period. The price per EOS was determined by the current market rate.
Here is how the supply was distributed:
- 200m (20%) tokens were sold in a 5-day sale between June 26 and July 1, 2017
- 700m (70%) tokens were sold over the year-long ICO
- 100m (10%) tokens are held by block.one
Block.one stated that the community wanted block.one to hold a certain amount of EOS to ensure their interested were in line with ICO participants and token holders. Tokens held by block.one are distributed linearly, every second to members of the team. It will take 10 years for all of the locked up EOS to be released.
EOS has received a lot of criticism for its poor distribution. At the time of writing, 10 addresses held over 496m (49.6%) EOS. That is just about half, for a project that had a “fair distribution”. This can be an issue due to the way governance on protocol occurs.
EOS currently plans to have a 5% yearly inflation. At one billion total tokens, this is equal to 50m (5%) new tokens in the first year. These tokens are compounded, and rewarded to block producers so they are not “working for free.” Users can vote using the method stated above to change the percentage of tokens created, and/or who these tokens go to.
EOS plans to have several airdrops on its platform, allowing users who hold certain amounts of EOS to receive free tokens of projects that run on the platform. This occurred on Ethereum in its early days to increase community involvement on the platform.
How to Buy EOS
EOS can be purchased on several exchanges, including Binance and Bitfinex. US users were banned from participating in the ICO due to laws and regulations but could still purchase the currency on exchanges. While it is not recommended to leave cryptocurrency on an exchange for a long period of time, the lack of mainnet wallets make it a possible choice.
How to Store EOS
EOS was best stored on myEtherwallet and Metamask. The mainnet swap occurred on June 3, 2018, so there are not many supported wallets yet. There is an EOS paper wallet available on GitHub that can be downloaded, but the wallet has not been confirmed to be safe. The EOS team has a command line wallet able to be used but is letting the community create software wallets.
EOS is developed by block.one, with major names being Brendan Blumer, Brock Pierce, and Dan Larimer.
Larimer is also known for the creation of Bitshares and Steemit, two other cryptocurrencies in the top 100 in terms of market capitalization. Bitshares is a decentralized exchange, and Steemit is a social network where the best content rises to the top. Blumer is the CEO of block.one and is the founder of ii5 and okay.com.
Besides being in the Mighty Ducks movie, Brock Pierce is known for starting Blockchain Capital and his involvement in EOS. While once being the projects co-founder, head, and advisor, Pierce had his affiliation with the project removed after John Oliver discussed a past scandal he was involved in on his show.
EOS Consensus Algorithm
EOS uses a version of delegated proof of stake, seen in other big projects such as Neo and Ark. dPoS allows users to vote for block producers (delegates) who have the required infrastructure to verify transactions. In this system, the block producers and voters are rewarded for their efforts. Block producers are encouraged to be on their best behaviour due to them needing a certain amount of votes to be eligible.
EOS claims to be able to confirm transactions with 99.99% of them being legitimate in .25 seconds.
The EOS community can be found on their official Subreddit, Twitter, Discord, and Telegram.
The EOS mainnet launch will have a huge effect on the future of the project giving proof to the team’s claims. Free and instant transactions are difficult to pull off in cryptocurrency. These features combined with smart contracts and decentralized app hosting, make EOS a serious contender with the other major smart contract platform: Ethereum.