EOS, the youngest of world's top 10 blockchains, currently ranks as the fifth largest in market capitalization.There is no record about the official full form for EOS, as the creators of EOS have not formally decided them yet. Let's break down EOS blockchain a little more and explore its history, goal, and features in this article.
BREAKING DOWN 'EOS'
EOS is a blockchain based decentralized system which resembles Ethereum in terms of functionality. It operates as a smart contract platform which is designed for creating, hosting and supporting decentralized autonomous applications (dApps). EOS builds a decentralized blockchain for fast and free transactions. It works similar to a web-based application along with additional advantages.
Dapps are the future of the internet. A large number of dApps have already been created until now and the number is increasing. Blockchain-based dApps are suitable for both individual and commercial adoption. EOS provides secure access and authentication, data hosting, usage management and communication between dApps and the Internet. It provides an operating-system-like set of services and functions that ease the development of dApps.
One of the main goals of EOS is to build a network that can process millions of transactions per second. This is a huge deal since no other blockchain based networks can perform that quickly currently. For instance, Ethereum, a popular smart contract blockchain can perform only 15 transactions per second. Similarly, EOS claims to eliminate the transaction fee and allow the easy deployment of dApps.
EOS is developed and maintained by Block.one which operates with a slogan ‘Decentralize Everything’. The founder member of EOS was Daniel Larimer, who was also a co-founder at both BitShares and Steem.
The Initial Coin Offering of EOS is very interesting. Block.one launched an Initial Coin Offering (ICO) for EOS tokens which are distributed on the Ethereum blockchain. A total of one billion EOS tokens were made available. Its ICO started on June 26th, 2017 and ended on June 26th, 2018 that made it the longest ICO of all the time. The main motive behind doing this was to involve everyone and increase the purchase of the EOS token.
Comparison of Ethereum and EOS:
EOS is even referred to as an Ethereum killer as it can perform all the functionality that Ethereum can along with additional features.
Both of Ethereum and EOS are capable of hosting their own dApps, which are supported by smart contracts.
Ethereum is more like a decentralized supercomputer but EOS locates itself as an operating system. The key difference is the scalability based on the processing amount of each network at a given time. Ethereum can process only 15 transactions per second which are way too small to achieve the goal of global adoption. EOS aims to process millions of transaction per second.
Features of EOS Blockchain
EOS blockchain provides features like user authentication, cloud storage, server hosting and many more. Let's discuss some of the features of EOS blockchain:
One of the biggest issues faced by public blockchain based application is the scalability. The scalability is based on the processing amount of each network at a given time. Non-blockchain based platform like Visa offers 1667 transactions per second and Paypal offers 193 transactions per second. Compared to this, blockchain based Bitcoin process 3-4 transactions per second and Ethereum offers 15 transactions per second.
EOS gained its popularity with their claim of processing millions of transaction per second. This is made possible by adaptation of Delegated Proof of Stake (DPoS) consensus mechanism. This mechanism attempts to speed up the transactions and block creation without violating the decentralized structure of the blockchain. It allows cheap, fast and environmental friendly transactions. It also allows users to put the coin at stake after which the user gains the right to validate the transactions, forge blocks and earn associated rewards.
Ethereum’s entire system suffered the DAO attack back in 2016. An anonymous person stole $50 million worth of Ethereum coins because of which the system remained standstill and everything stopped. This hack occurred because the blockchain had been forked. A fork occurs when a new blockchain uses original code from an older blockchain but makes changes for improving them.
This attack is unlikely to happen if there existed a mechanism that could freeze the transactions for a certain period of time. The EOS blockchain uses a new consensus model known as Delegated-Proof-of-Stake (DPoS).
The use of DPoS ensures that the attacks like these do not happen in the future. In EOS ecosystem, if any fault is detected, the elected block producers are blocked until the system is maintained.
The EOS blockchain provides a complete operating system like functionality for decentralized applications. It is a ready-made platform for apps that permits developers to use a full-featured authentication system.
It allows well-defined levels of permission by incorporating features like web toolkit. The user accounts have to compete with different permission levels and their locally secured data appears as a feature of the network. In his network, a user gets a lot of features to use their data. They are able to share database access between other accounts as well as store these data on a local machine.
The governance in case of EOS is maintained by establishing jurisdiction and choice of law on which everyone agrees upon. These are linked with every block that has been mined. Every single transaction should include a hash of the constitution to the signature. This is how a user is bound to the constitution.
In case of emergencies like the DAO attack, the block producers can speed up the amending process.
EOS comes with an ability of parallel processing where all the program instructions are divided among multiple processors. This features allows faster transaction and even increase the scalability. EOS provides parallel processing of smart contract using horizontal scalability, asynchronous communication, and interoperability.
The additional resources like computer and systems are included during the horizontal scaling. Asynchronous communication makes it necessary to be present at the same time for making a communication happen. Interoperability is the ability of a computer system to exchange and use information.
Self Sufficiency and Evolution:
Currently, any blockchain based on EOS software will generate a 5% inflation per year which is used for further development of the network. The inflation generated are distributed to the block producers by confirmation of the transaction. Here, only the top three smart contracts or proposals get the distribution that receives the highest amount of votes from token holders.
That is why EOS blockchain does not have to depend on any single one foundation, organization or an individual for its growth, development, and maintenance.
Decentralized Operating System:
The EOS blockchain allows developers for building applications. For using this blockchain, EOS coins are required. By owning the EOS coins, one can claim a server resource. But before using any of those resources, a user needs to prove that they hold them.
EOS blockchain provides accessible experience to the app developers, entrepreneurs, and the users. One thing that is sure about EOS is that it isn't going away anytime soon as it has a huge potential of becoming one of the popular blockchains of the future.