What Is EOS?

27 Jun 2019

EOS is one of the largest blockchain-based platforms for building and deploying decentralized applications (dApps). As outlined in its design specifications, the EOSIO protocol emulates most of the key functions and attributes of an actual computer system. These include managing hardware components such as CPUs, GPUs, hard drives and RAM for storage and memory; and software used to interact with the platform.

Both the hardware and software resources are distributed evenly among EOS cryptocurrency holders. As a smart contract-enabled platform, the EOSIO protocol also outlines the specifications for the development of a decentralized operating system. 

Developing Scalable, Industrial-Scale Applications

The EOS development environment has specifically been designed to facilitate the development of industrial-scale dApps. In order to manage the creation of distributed applications, the EOS platform operates through a “decentralized autonomous corporation” model.

Initially proposed and developed by Daniel Larimer, a computer scientist who’s also responsible for the development of blockchain-powered networks Steem and BitShares, the EOS platform does not require that users pay transaction fees and its founders claim it will scale to process millions of transactions per second (TPS).

EOS Mainnet Launched in June 2018

After its whitepaper was released in 2017, Block.one, a Cayman Islands-registered open-source software publishing firm, introduced the first version of EOS’ mainnet software the following year, and the highly-anticipated crypto platform went live on June 9, 2018.

In order to evenly distribute the platform’s native crypto token, the developers at Block.one distributed 1 billion ERC-20 compliant tokens among the platform’s early adopters. The main purpose behind distributing such a large amount of tokens was to give all network participants the opportunity to launch the EOS blockchain once the mainnet’s codebase had been released.

$1 Billion in Funding Allocated Towards EOS’ Ongoing Development

Brendan Blumer, the CEO of Block.one, had announced (at the time of the mainnet launch) that his firm would support the ongoing development of the EOSIO protocol by allocating $1 billion in funding to the distributed ledger technology (DLT)-based project. The funds came from the $4 billion in capital raised by Block.one through the world’s largest initial coin offering (ICO) in mid-2018. EOS has thus proved very popular with traders. For more info on trading EOS and other cryptoassets, visit TrustedBrokerz.

Prior to releasing the first version of EOS’ mainnet, the protocol’s developers launched several test networks (testnets). These included Dawn 1.0, the original or very first EOSIO protocol-enabled tesnet, which was introduced on September 3, 2017. On December 4, 2017, the second EOS testnet, Dawn 2.0, was released and testnets Dawn 3.0 and Dawn 4.0 were launched on January 25, 2018 and May 7, 2018 respectively.

Decentralized Storage Model Aims to Solve Scalability Problems

The EOS network is mainly used to deploy and host dApps, and the EOSIO protocol also supports smart contract functionality and the capability to implement decentralized storage of enterprise-level software applications. Notably, EOS’ distributed design and storage architecture aims to address the scalability problems that plague major cryptocurrency platforms including Bitcoin (BTC) and Ethereum (ETH).

As explained, there are no transaction fees charged on the EOS network. The developers of the EOSIO protocol claim their platform can maintain a zero-fee model due to its multi-threaded (ability to operate on multiple CPU cores) design. Additionally, EOS’ delegated proof-of-stake (DPoS)-based consensus algorithm helps in achieving a zero-fee transaction model. 

As stated in its whitepaper, the EOSIO protocol specifies how to implement the world’s first decentralized operating system. Existing blockchain-powered social media applications such as Steemit and decentralized cryptoasset exchange (DEX) BitShares may run on the EOS network.

Network Resources Allocated In Proportion to Stake in the Platform

The primary native cryptocurrency, EOS, has been designed to serve as a utility token, which may be used to access EOS network resources such as bandwidth and storage space on the public blockchain network. According to EOS’ technical documentation, users are allocated network resources in proportion to their overall stake in the platform. For instance, a user who owns 5% of EOS tokens would be able to utilize up to 5% of total network resources available.

EOS token holders may also use their cryptocurrency to cast votes and participate in on-chain governance-related matters. A user’s voting power, or influence, is proportional to the size of their stake in the EOS network. The EOS Constitution requires that platform users vote for 21 block producers (BPs) (at the time when the DLT-enabled network went live). 

After the EOS mainnet launch, network participants continue to vote for their preferred delegates or BPs. These full-node operators are tasked with generating and validating blocks - with block times set to 500 ms. 

Developing Apps Using WebAssembly with Rust, C, C++ Support

In order to develop applications using the EOSIO protocol, developers may write general-purpose and smart contract code using WebAssembly - with the option of using the Rust, C, and C++ programming languages. Developers may also use a portable stack machine which will reportedly be developed at the World Wide Web Consortium (W3C) - the main standards organization for the World Wide Web.

Notably, the EOSIO software allows all user accounts to be associated and referenced with human-readable names that may be up to 12 characters in length. To create a new EOS account, users must reserve the RAM needed to keep records associated with their account. EOS tokens may also be staked to acquire RAM for storing account information and other details.

Block.one, Crypto Merchant Bank Galaxy Digital Invest $30 Million in Everipedia

On December 6, 2017, Everipedia, a Cayman Islands-based, private, for-profit developer of an online encyclopedia, revealed it would be using the EOS blockchain network. The Everipedia team also announced it would be conducting an airdrop of a digital asset, called IQ, in order to encourage users to make contributions to the wiki-based information portal.

As explained by its issuers, the IQ tokens are intended to be tradable for major cryptoassets including Bitcoin (BTC). According to Everipedia’s management, one of the main objectives of their online encyclopedia platform is to leverage blockchain technology to prevent governments of certain countries from censoring information.

Once Everipedia’s platform completes its transition to the EOSIO platform, the decentralized nature of the network will allow residents of nations such as Turkey, China, and Iran to access information on their platform. Currently, the citizens of these countries are unable to access several websites like Wikipedia due to restrictions placed by their governments.

On February 8, 2018, Michael Novogratz, the CEO of Galaxy Investment LP, a leading digital assets investment company, and Block.one’s management completed a $30 million investment round in Everipedia. Novogratz has also reportedly made strategic investments in the larger EOSIO ecosystem, which involves a $325 million joint investment fund that is managed by Block.one and Galaxy Digital LP.

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