What is EOS?
In the crypto industry, new projects appear one after another. One of the brightest representatives was the EOS platform, developed since mid-2017. The project is a platform for decentralized applications with the highest transaction processing capacity, flexible and convenient account security model and a variety of effective technical solutions.
No less interesting is the Creator of the platform Dan Larimer, he previously created a decentralized exchange BitShares, social network STEEM, cryptocurrency BitUSD, as well as the blockchain engine Graphene, on the basis of which all three of the above projects are built. The total market capitalization of Larimer’s developments, even without EOS, exceeded $800 million.
The crowdfunding company raised $4.2 billion. Before that, the record belonged to the Telegram project created by Pavel Durov: $1.7 billion. But EOS developers broke this record.
EOS was the answer to the difficulties in implementing the capabilities of smart contracts in Ethereum for many promising areas. Bitcoin and Ethereum in their current state is simply unprofitable and inconvenient to use for some areas that require large network bandwidth. Bitcoin, Ethereum and other platforms are clogged with traffic. Ethereum can only process tens to hundreds of transactions per second. For example, the speed of PayPal is about 200 transactions, Visa is about 2000 (with peaks up to 4000). On Twitter, Bing and Facebook — from 500 to 1000 transactions/sec. EOS solves the scalability problem by increasing throughput hundreds of times. But, directly compare this engine with Ethereum is quite difficult, because they have a seriously different architecture. EOS initially has a hierarchical system of accounts and many management functions available to network members. These decisions are made on the basis of voting by stakeholders of the system and can greatly change the parameters of the system.
For the developer of smart contracts, if we leave aside the blockchain, EOS offers, in fact, a database with an account system, access, and logic of which is controlled by the developer of the contract. EOS allows you to focus solely on the business logic of applications, giving the developer almost all the necessary tools to work with accounts and their data. That is why EOS can be called almost an operating system on the blockchain.
EOS inherited graphene’s consensus-building algorithm in a decentralized environment, Delegated Proof-of-Stake (DPoS). DPoS is based on the reputation and voting system. Each round network members “vote” for accounts that are allowed to “close” blocks in the network. The processing power of these nodes (called block-producers) is the core of the EOS blockchain, together they produce blocks in a stable and predictable time. The list is managed by voting using different scenarios to throw out “bad” BP’s and include new ones.
Another protection from the centralization implemented in the mechanism of separation of tokens. The developers kept only 10% of the EOS tokens, while through a smart contract they determined a 10-year period for obtaining their share. 90% of EOS tokens will be distributed among participants. For comparison, in NEO, most of the tokens are held by the developers themselves. New EOS tokens will be created at the rate of no more than 5% per year, called inflation of the system and will become a reward for block-producer and voting for them.
EOS tokens give users a proportional share in network bandwidth, storage, and processing power: if someone owns 1% of the EOS tokens, they will always have access to 1% of the network bandwidth, regardless of the load on the rest of the network. Startups and individual developers can purchase a small part of the network bandwidth, use their own projected bandwidth and computing power, or lease it. This solution allows the network to increase capacity without changing the cost of transactions. Moreover, EOS allows you to transfer the payment of the transaction to the recipient’s contract, which allows you to create free Dapps for the client.
EOS provides developers with cryptographic and communication tools for blockchain applications. The framework includes role-based permissions, web-based interface development tools, self-describing interfaces and database schema, declarative permission schema, a mechanism to freeze and fix broken or frozen applications. It also solves the problem of transaction speed — it reaches tens of thousands of operations per second. In addition, parallelization is used to scale the network, which allows you to achieve an amazing speed of a million transactions per second. In the future, this will support thousands of Dapps.
EOS is a carefully calculated project that is fueled by the faith of the community in need of a qualitatively new product in the blockchain market. Already now we can confidently assume that EOS accumulates and uses the experience of many successful products. Against this background, the huge amount collected on the ICO does not look accidental.