Hailed as the "Ethereum killer", it is time to find out what it is and if EOS could be a worthwhile investment. Let's start from the beginning and learn what the new cryptographic network is about.
What is EOS?
EOS is the native cryptocurrency of the blockchain protocol EOS.IO, a company founded by Block.one. In May 2017, the Cayman Islands-based startup presented the project in its white paper.
In 2018, the company raised over $ 4 billion in an ICO that lasted more than a year, the longest for any cryptocurrency project and also one of the most profitable in technology, with Bitcoin ($ 185 million) and Telegram ($ 1.7 billion) down far behind.
Head of the project is Block.one's managing director, Brendan Blumer, and CTO, Daniel Larimer, the creator of the DPoS (Delegated Proof of Stake) consent mechanism for the verification of cryptographic transactions.
In essence, the network is very similar to Ethereum and many other cryptographic analogs, with a cryptocurrency, blockchain, white paper, a consensus mechanism and all other usual features.
But, what does EOS really do?
EOS uses a blockchain-based architecture, which allows users to horizontally scale decentralized applications (dApps). For users, this means they can focus more on the overall performance of their apps, with the EOS.IO platform that takes care of all the details, including databases, authentication, cryptographic accounts and more, to create a high quality result.
So, what makes it so different?
EOS is Not Mineable
Unlike other cryptographic networks that allow users to get a stake through mining, EOS released all of its coins in a one-year ICO process with about 1 billion coins distributed in total . This release system allows investors to build market demand for the currency and help prevent centralization that has become problematic for many of the established networks. Coins extracted from large companies can create artificial centralization in a decentralized network.
EOS is a free network
Well, not exactly, the company has eliminated transaction fees, which means users do not need to spend their EOS cryptocurrency to use the network – It's free. However, they need to prove that they keep them, making the network inaccessible for some users. Any commissions on the network are decided by the creators of the app during development.
EOS is fast
One of the main drawbacks that the founders of EOS had with other cryptographic networks was the low speed of transactions, so it is not surprising that the company places a huge speed focus. His ambition? Millions of transactions per second. With the platform still in its infancy, performance results are not yet clear. If he can keep his promise, he may turn out to be a difficult contender for other networks.
EOS is a digital democracy
The DPoS consensus system of the platform allows to quickly and democratically validate transactions on the network. The system allows transactions to be assisted by a group of interested parties who verify their authenticity, which means that the community's vote counts.
The team behind the project
The CEO of the company Brendan Blumer is head of the team. The entrepreneur of American origin, who currently lives in Hong Kong, began his journey into the world of technology at the age of 15 by developing a website to sell virtual gaming assets. After joining Crypto in 2014, he met and started working with Daniel Larimer in 2016.
CTO Daniel Larimer is best known as software programmer, founder of the DPoS system and serial encryption entrepreneur. Since joining the encrypted world, he has been involved in numerous projects such as BitShares and Steemit.
Brock Pierce and Ian Griggs are two of the company's partners. Pierce is a venture capitalist and holds positions as president of the Bitcoin Foundation and co-founder of Blockchain Capital. In the meantime Griggs is the creator of the Ricardian Contract, a method for taking legal contact and expressing it in a programmable format, a possible precursor of modern smart contact.
Critics of the ethereal killer
Although the company's ICO was launched a year ago and closed in July 2018 with over $ 4 billion raised, many are not clear on what the 39; company intends to do with investment, causing some skepticism among investors.
Further questions have been raised since the stalled launch. During the launch weekend, a bug in the system caused block production downtime, creating questions about the safety of the platform and how it was tested.