What is EOS?
EOS is a blockchain-based decentralized platform designed to build hosting, host, and manage applications for businesses, also called dApps.
EOS was introduced in June 2018 following an initial public offering which brought in $4.1 billion in cryptocurrency for Block.one the company that created the open-source software known as EOS.IO, which is utilized on the platform.
EOS cryptocurrency tokens are used to create an option for payment within the Blockchain.
EOS.IO Facts | Understanding EOS
EOS provides core functionality that allows individuals and businesses to develop Blockchain-based applications like a web-based application. EOS allows secure access, authorization, permissions, data hosting, management of users, and communications with dApps and the Internet.
EOS comes with a web-based toolkit store aimed at creating apps that are easy to develop.
The basics Of EOS.IO along with EOS Tokens
The EOS ecosystem comprises two main components, which are the EOS.IO software and EOS tokens.
- EOS.IO is similar to operating systems on computers. It is responsible for managing and controlling EOS.IO, the EOS Blockchain network. It uses blockchain technology to allow the horizontal and vertical scale of DApps.
- The EOS token is the cryptocurrency of the EOS network.
A developer only needs to store EOS coins instead of spending them to utilize the network resources and develop and run DApps. Holders of EOS coins who aren’t running any apps can allocate or lease the bandwidth they have to users who require it.
Also Read: Decred Coin Facts
Now owned by The Block.one firm, EOS, was launched by Dan Larimer, who is also the creator and founder of the established platforms like Bitshares as well as Steem.
What is the difference? EOS is Different
EOS is regarded as a direct rival to Ethereum and has ambitions to be more powerful, better, and speedier. Particularly fast as Ethereum is said to be able to process 15 transactions per second, EOS hopes to handle millions of transactions in a second. This is an ambition and not a reality. 1
With the scale of the DApps community growing each day on Blockchain, insufficient available resources are an important problem. EOS.IO seeks to solve these issues by providing more flexibility, scalable and accessibility through its unique method of operation.
The characteristics of EOS.IO
EOS.IO claims to handle thousands of DApps that are commercially scalable without experiencing performance bottlenecks due to the use of parallel execution and an asynchronous communication method over the network.
The efficiency is further improved by using separate modules integral to the functioning of DApps. For instance, the authentication process separately takes place from the execution.
EOS includes key usability features, including an interface toolkit that can be used on the web for creation, self-declaring interfaces, self-describing schemas for databases, and an explicit permission scheme. These features make the task of developing and maintaining applications more simple.
EOS’s Economy EOS
The EOS system does not employ the well-known mining concept employed by Bitcoin. Instead, block makers create the necessary number of blocks and are paid by creating the new EOS tokens for every Block they create.
Block producers can make public a figure they want for payment. The number of tokens they produce is determined based on the median of the anticipated pay reported from all producers.
Because block producers naturally want more money, this feature could be misused. To prevent this from happening, an incentive mechanism is in place to limit producer-award tokens to ensure that the annual increase in token supply does not exceed 5percent. Token-holders who have the power to vote on the matter can eliminate producers in Block who are demanding more.
The mechanism works to complement EOS storage since every token holder pays for the storage of their files within the EOS network by paying a percentage of their annual inflation. For as long as they’re keeping a file on the network and storing a file on the network, their EOS tokens will be held and lose value with inflation rates.
The more storage is required, the greater number of blocks will be requested from block creators. The creators can demand higher value for their work by gaining higher inflation, which holders of the tokens approve. If demand for storage decreases and inflation is lower, the demand will be less, which will reduce the loss of value of stored EOS tokens.
EOS tokens can be stored in various wallets, including Ethereum Wallet, MyEtherWallet, and MetaMask. They can also be traded through exchanges like Bitfinex or YoBit.
EOS on the News
In September, one of the smaller firms that played a role in the initial development of EOS left the project, stating that it was focusing on different blockchains and EOS.IO application software. According to Coindesk, the main reason for the decision was that the assistance of EOS whales, which included large portfolios of tokens — was needed to earn profits, and these whales were working with blocks producers from China. This was not a good thing for EOS. 3
EOS has been criticized in different ways. Soon after its introduction, the block producers blocked seven accounts with stolen tokens, though EOS did not have the legal authority to take this action. This incident highlights another issue concerning EOS it is that it is not governed by an effective system of governance.
In June, Brock Pierce, an early member of the Block. one team, became a sensation by claiming the idea that a “Chinese Oligarchy now controls EOS.” While it’s true that the majority of block producers are located in China, however, the issue has greater to do dangers centralization can bring. The most common complaint against the current block makers is that they do not prioritize the development of new DApps, which will draw other people to use the Blockchain.
Concerning Governance, EOS has since settled on a governance system for a voting system that is open to the entire pool of EOS holders. However, EOS New York said that it’s “simply an opportunity to measure the holders’ interests.”
In May 2021 in 2021, the EOS price increased by 50% following the announcement that Block. one has created an affiliate called Bullish Global. (The price dropped just as quickly towards the end of that month. ) 4 Bullish Global plans to launch an entirely new cryptocurrency exchange based on blockchain technology. Some of the most prominent Investors of Bullish Global are Peter Thiel, Mike Novogratz, Alan Howard, Christian Angermayer, Louis Bacon, Richard Li, and the financial organizations Nomura and Galaxy Digital.
EOS ranks 29th out of cryptocurrencies according to Coin Market Cap. It was trading at $4.46 on August 6, 2021.
EOS Crypto FAQs
What is EOS Mean in Crypto?
EOS is an abbreviation of the Electro-Optical Systems. EOS is an operating system that relies on blockchain technology.
What is the goal of EOS?
The EOS system was created to enable decentralized applications often referred to as dApps at a commercial scale. EOS is the foundational technology for companies to create blockchain-based applications similar to creating web-based applications.
Can EOS go to $1,000?
At the beginning of the year 2021, EOS began to fall with a price of $2.63. However, it went up to $12 by May 6. Like the other cryptocurrencies, EOS is volatile. However, few analysts think that the EOS price is reaching $1,000 anytime soon.
CoinPedia estimates that EOS’s price could reach $18 to $24 by 2021’s end and possibly around $45 in 2022. With the possibility of startup collaborations to boost its infrastructure for blockchain and transaction speed, CoinPedia suggests that EOS could be as high as $160 in the next five decades. 7
WalletInvestor believes that EOS’s price EOS will not exceed $14 until the end of the year 2025. 8 Digitalcoin predicts that EOS will cost between $19-$24 in 2025. 9 Longforecast estimates a price of $45 by the mid-2025 time frame. 10
The Bottom Line
There is some possibility of EOS as a blockchain-based system. However, it’s in its early stages. Some are skeptical of the bold claims of speeds of 100,000 transactions per second, or the condition that you have EOS tokens to complete transactions could diminish the appeal of EOS.
As with all blockchains that use cryptocurrency, the blockchain space will attract and amuse many investors in the coming years.