Cryptocurrencies have in the last ten years become the big thing in the digital world. Since Satoshi launched Bitcoin in 2008, the technology has become the bridging point to designing and running other currencies. As a pioneer, Bitcoin has key flaws that every other new Cryptocurrency seeks to remedy. One such cryptocurrency is EOS. This post is a comprehensive review of EOS Cryptocurrency.
What is EOS?
EOS is a consensus blockchain platform that provides account permissions, databases, authentication, and scheduling communication to enhance smart business efficiency. EOS was established in the second quarter of 2017 by Dan Larimer who is also the creator of Steem and Bitshares.
The ability to address scalability caught the attention of top press such as New York Times and Reuters that pointed its potential. This publicity raised the demand for EOS tokens that pushed the Cryptocurrency to number nine by mid-2017. The Cryptocurrency has a market cap of $747million.
It is the operating system that people were waiting for that allows them to focus on building the apps that users need without getting in the way, forcing gas, or requiring users to purchase anything before use. EOS dramatically accelerates the rate at which developers can build apps.
The main goal of EOS is to address the scalability issues that affect the overall efficiency of most cryptocurrencies. At Bitcoin, there is a limitation of 3 transactions per second because of the large block size. Though Etherium tried to address the problem, it only raised the efficiency to 30 transactions per second (a figure that is still considered too low). However, EOS provides parallel processing of every smart contract via horizontal scalability, interoperability, and asynchronous communication. This mode of operation has made adding more nodes and clusters pushed behind transactions processing to increase the volumes of transactions.
How EOS Works?
EOS operates as a decentralized operating platform. This means that developers are allowed to build apps on it. To start using the platform, you are required to get some EOS coins to have some claim on the network server resources. Therefore, the first step is getting an appropriate wallet; Ethereum compatible wallet where only you have the private keys. Some of the wallets that you can consider include MetaMask that works as a Chrome add-on or MyEtherWallet that does not require downloading.
Unlike other networks such as Ethereum, the EOS coin holder does not need to use the coins. They are simply required to prove they hold them to continue developing various apps. However, people who anticipate trading can buy and sell the coins in top exchanges.
The operating system is hosted on specific servers that generate blocks. To motivate the servers to keep hosting EOS and related apps, they are given the Block rewards or tokens. All the apps running on the decentralized EOS network will communicate with each other.
All applications in the EOS network utilize very common functions including user interfaces, passwords and database management. This means that all apps can share the libraries to hasten the development, secure, and less technical. For example, every app will get a space on the EOS framework.
EOS platform is designed to allow developers create blockchain apps that end users can interact with. This has been an important selling point for EOS because a lot of creative projects will be added. It will be easy to transact fiat currencies for cryptos, evaluate the market, and interact with the community.
Main features of EOS
EOS has a token system that operates on the principles of Steem. Unlike other tokens that charge a fee, EOS tokens do not attract any charges. Users own 1% of the network storage, 1% of the bandwidth, and 1% of computation power. It is this power that one lease to other parties or apply in his/her own app. Note that this power is an ‘own’ model as opposed to ‘rented’ entity that allows holders even to monetize.
Delegated Proof of Stake
Larimer, having worked in other highly successful projects such as Bitshares in 2014 was committed to creating a system that could remedy every small issue he had noted. The delegated Proof of Stake is a special algorithm that allows community members pick witnesses for verifying transactions. As opposed to the transactions relying on anyone in the network which can take longer, the delegated system makes it possible to complete transactions faster. This mode of operation has made EOS get referred as the ultimate crypto to take over Ethereum.
Pros of EOS Cryptocurrency
- The Cryptocurrency has demonstrated its huge potential that could even rival top performing platforms such as Ethereum.
- Because the founder has had a very successful career especially in developing other blockchain projects such as Steem, EOS is seen as a remedy to many flaws in previous platforms.
- When people turn to cryptocurrencies, one of the main expectations is enjoying very low or free transactions. This has not been possible with other cryptocurrencies. However, EOS has very low fees and promises to make all transactions free.
- Larimer succeeded in making the EOS platform extra fast compared to other networks. The founder promises that the network will be able to handle millions of transactions every second.
- The platform makes it very easy for developers to join and start working on new projects. This means that people can anticipate even more creative projects along the way.
Cons of using EOS
While the EOS platform inspires great admiration from users and developers, it has only been developed recently. This means that even people who consider it as an alternative to other top cryptocurrencies might want to take time and assess the stability.
Where to Buy and Sell EOS in Australia?
Crypto Currency for Fun recommends buying EOS at CoinSpot. CoinSpot is a multi cryptocurrency wallet with built-in trading features. Users can store many coins, including EOS and they offer Instant Delivery or your coins right into your account.
EOS has come at a time when more people are starting to accept cryptocurrencies as an alternative to fiat currencies. While the crypto is one of the latest in the market, the founder has brought a new impetus by allowing developers to own a piece of the network resource. Its potential is really huge, and you would rather join it to become part of the emerging shift in the Cryptocurrency world.