Although, its parent company Block.One, did not mention the meaning of EOS, this blockchain technology can be understood as Ethereum Operating System, due to its ingrained characteristics. EOS is built on Ethereum and it is a platform to develop Decentralized Applications. Terming the platform as EOSIO, block.one claims it as “the most powerful platform for decentralized applications.”
From the perspectives of functionality, it is similar to Ethereum. However, the technology promises speed, scalability and flexibility as its groundbreaking features. EOS was launched in June of 2017 by Dan Larrimer, the creator of Steem and BitShare. Now, EOS is operating in two forms, EOS Token and EOSIO. EOS Token is the cryptocurrency and the EOSIO is the platform for app development.
Ethereum Vs EOS
EOS is comparable to a layer above Ethereum. Although the basis of its technology is Ethereum, it exhibits many different facets in terms of design, mechanism, governance, scalability, economic structure as well as response to attacks. Ethereum is based on a broader design philosophy allowing users to create sub-protocols as per their needs.
In fact, it is because of this scalability of Ethereum that made EOS possible. EOS, in contrast, offer functions and cryptography to develop Enterprise level DApps. This is primarily the platform to create private ethereum networks through role based permissions. The blockchain platform even provide unique toolkit for DApp development.
What problem does EOS solve?
EOS emerged in the wake of blockchain’s popularity. Every new ICO in the cryptocurrency ecosystem arrives to solve the existent issues. This is the only way to gain popularity and establishment in the market. While EOS turned as one of the most successful ICOs, it was basically because it addressed some critical issues in the ecosystem.
As DApps grew as a popular trait, its development began to crowd the existing blockchain platforms making them congested with large number of real as well as fake transactions. Such networks began to exhibit slow execution speed getting struck with limited computing power. Thus, EOS came up as a highly scalable and flexible platform to develop enterprise grade and highly complex DApps. It’s unique feature supports it to achieve its claims.
Prime Feature of EOS, Delegated Proof-of-Stake
Parallel processing, asynchronous communication and mechanism based on proof of stake comprises its primary features. EOS uses Delegated Proof-of-Stake mechanism to reach a consensus. This mechanism enables the network to complete millions of transactions per second. In contrast to Proof or Work, EOS is based on Proof of Stake. In this technique, a creator of a new block is chosen depending on its wealth. Whereas, proof of work, mining is the primary way to gain access to the network.
EOS developers do not need to spent the token they has to access the computing power. There is no reward in the system, meaning, any user can get the space and power to create their DApp depending on the amount of EOS Token they has.
In EOS network, block producers are approved through a continuous approval voting system. The opportunity to produce blocks in the EOS ecosystem is dependent on the total amount of votes the user get relative to other users. In this system, there is no mining of coins, they are attained in the form of investments in the ICO.
Prospects of EOS
The amount of EOS Tokens is fixed at 1 Billion EOS. In terms of market capitalization of cryptocurrency volume, it is now the fifth largest currency, with high daily trade volume. The reason of popularity of EOS both as a cryptocurrency and as a development platform is its alignment with the requirements of the industry. As it is possible to create strong and scalable decentralized apps using it as a platform, businesses will invest on the platform to gain more space and computational power.
EOS platform is comparable to computers in the Ethereum platform that has the complete set of features and capabilities to develop large DApps. More EOS Token an user has, more will be the power of the node or the virtual computer. Hence, owning to the rising trend of DApp adoption, EOS will also gain more popularity.
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