What is EOS?
Description
What is EOS crypto: is it a blockchain, a cryptocurrency, or a network? What its mining capabilities are? We will explore what else crypto EOS is in our material.
What Is EOS?
Crypto EOS (or EOS.IO) is a blockchain platform that supports smart contracts from which decentralized applications (Dapps) are created. EOS coin is the platform's cryptocurrency of the same name.
History of the creation of EOS
The starting point in EOS history was in 2013 when the main developer of the platform and cult crypto personality Daniel Larimer came up with the idea of a new DPoS network consensus algorithm (Delegated Proof of Stake) – a delegated ownership right. He initially used his work to create BitShares, a public open surreal-timeline trading platform based on blockchain technology.
In 2017, the privately held block. One company (B1) took over the development of the revolutionary EOS platform. Dan Larimer led the company as CTO and Brendan Blumer as CEO and EOS founder.
From 2017 to 2018, B1 held an ICO (initial sale of platform coins among investors). It is noteworthy that the ICO of the project went into crypto history as having raised the largest amount of funds – $4.2 billion. Over the same period, several test versions of the network and, of course, the final working version of the EOS.IO platform were released.
In the following years, the project grew, scaled, technically improved, and became what it is now one of the top blockchain platforms, which many begin to call the 'Ethereum Killer'. The evolutionary process of the platform, like any other grandiose project, has not been without its scandals and confrontations between the creators. So, in January 2021, Dan Larimer left B1 and focused on the social component of the EOS project. There are currently legal disputes between the new companies set up by Larimer – EOS DAO on one side and B1 on the other – over capital and liquidated damages for certain management decisions. On its part, B1 has completely abandoned development and only uses existing EOS tokens for other purposes – such as creating exchanges and new products unrelated to EOS.
Larimer, the EOS community, and the leading developers who left B1 are, on the contrary, scaling up the project, trying to maintain its innovative exclusivity and revolutionary nature (more on that below in the 'Benefits of EOS' section).
How EOS token works
EOS works – thanks to DPoS! Now let's find out what it is and why. The basic rule for the existence of a DPoS consensus is to delegate the right to create blocks in transactions. This sounds complicated, but we will now look at who, what, and to whom it delegates and what these blocks are:
- What is the difference between DPoS and PoS? In a PoS consensus, everyone who stores coins in an online wallet makes the network work. In DPoS, the operation of the network is provided by validators for whom the majority voted, i.e., delegated to them the right to ensure the normal functioning of the network and the smooth flow of transactions.
- What kind of majority is it? EOS coin holders are a DAO (decentralized autonomous organization) that, depending on the number of coins in their wallets, have a corresponding number of votes. So they dispose of them at their discretion as part of the platform management – they' delegate authority to conduct transactions and ensure their smooth functioning to the 'coolest' network participants.
- To whom do they delegate, anyway? The elective members of the network who become validators do not receive their 'positions' by vote alone. To qualify for the role of a validator (creator of transaction blocks), voters must first confirm their ability to ensure the smooth functioning of the node with their available capacities, and they also have an impeccable reputation among the project community.
Based on the mechanisms of voting and delegation of rights, as well as the receipt of 'positions' based on reputation and contribution to the EOS community, the EOS is often referred to as the 'digital democracy.
EOS Altcoin: forecasts of development on the cryptocurrency market
As mentioned above, EOS is the platform's cryptocurrency of the same namIts relative stability distinguishes itity during periods of large-scale market fluctuations.
The coin is not mined, which is natural for many Altcoins that operate on the PoS algorithm. A total of 1.053 billion tokens (coins) have been issued, with just over 980 million in circulation. The market capitalization as of mid-February 2022 is $2.343 billion.
The coin showed its minimum at the beginning of its trading path in October 2017 and traded at 0.48 for 1 EOS. The coin peaked in April 2018, when it was worth $22.89.
According to analysts' forecasts, EOS meaning grows, Analysts predict that EOS will be a good investment option when diversifying the portfolio, as its steady growth is predicted in the coming years – 2022–2025. For example, many reputable publications argue, almost in unison, that the coin will double in value (to $5) by the end of 2022, will beat its maximum within the next few years, and will cost $85–100 in a decade.
The benefits of EOS crypto
We will not deviate from tradition and so present our readers with several important facts about the project:
- There are no transaction fees on the EOS network. It only uses users' capacities. In simple terms, it is free to use the network.
- Delegation consensus, which we discussed above, is the highest security mechanism for transactions.
- In EOS, users can create their decentralized applications. Its main rival, Ether, does not offer such opportunities.
- Separate mechanisms or system updates in case of failure/inoperability can be 'frozen' and fixed in parallel without affecting the functioning of the network. This flexibility of the system significantly increases its stability compared to competitors.
- Even when the project was still developing, its blockchain was already being used by crypto-sphere whales such as Bancor, Bitfinex, and Everipedia.
- The DAO of the project is one of the most popular communities that has established itself as a cohesive, objective, functioning community that makes the right management decisions. So, together with the EOS Network Foundation (a non-profit organization), the community halted payments to B1 by blocking and canceling the emission of 67 million EOS, which would have been distributed over the next 6–7 years. Dan Larimer and the DAO have long accused B1 of neglecting the interests of the EOS project in favor of their developments. In fact, that is the case, but this is not what this article is about, and the project is doing well now.
- The EOS platform is being developed as an advanced alternative to all existing platforms and blockchains. The throughput of simultaneously processed transactions in the network will be several million operations per second. For comparison, Google now has a speed of 40,000 operations per second, Solana has 50,000, and the main competitor Ethereum has only 15!
Why we need EOS
EOS is very attractive for investors in India and as a blockchain standard to launch all developments in the digital economy segment. EOS cryptocurrency is among the top 50 most promising and largest projects and carries economic value for every user.
EOS is considered one of the leading projects for launching NFT and DeFi services, including in the ranks of Indian developers.
EOS in India
The use of cryptocurrencies within a single state is possible, even necessary, if you want to solve a number of problems and economic issues (for example, within the development of the Indian economy). EOS for India as a country can be eaten into:
- Facilitating the central bank's own digital currency (CBDC) issuance as a key technology solution;
- Making banking and digital economy services more accessible to the population (e.g. for the district of Jodhpur, Rajasthan province);
- Creating accounting registries and supply chains across the country (e.g., from Kanpur to Pune) and other applications.
Conclusion
EOS is a project with a complex but colorful history. According to all forecasts, the network has a great future, and its cryptocurrency is now a promising investment.
Given the market attractiveness of both the project itself and its EOS Altcoin, the EXEX platform allows its clients to trade Altcoin on favorable terms. Our clients are provided with a unique risk management system that protects your deposits from a complete loss of funds, as well as high leverage and indicator signals that help to make trading decisions.
Trade successfully with EXEX! You can find out more about how to trade cryptocurrencies on the platform in a dedicated article on the subject (time to read up to 10 minutes).
