Cryptocurrency EOS is a newcomer to the blockchain-based cryptocurrency market. The purpose of the creation was to provide support for decentralized applications that were created for commercial purposes. Fundamentally new algorithms allow EOS to conduct millions of transactions per second, which was a real breakthrough in the field of blockchain technology.
Today, it is precisely the speed of processing transfers that is the Achilles heel of such market giants as Bitcoin. It is not yet clear whether the EOS cryptocurrency can become a competitor for market leaders, but the technology on which it is based is very promising.
In essence, EOS is an operating system for blockchain applications. For the implementation of the project, the idea of asynchronous smart contracts executed in parallel was used. This allows the system to achieve the performance of hundreds of thousands of transactions per second. There are no analogs of such bandwidth in the world of blockchain projects yet.
The new blockchain architecture allows the scalability of the EOS platform. And this, in turn, allows you to increase your record-breaking throughput to millions of transactions per second. Also, EOS developers promise an easy and quick deployment of decentralized applications.
EOS development and input history
The father and creator of EOS, Daniel Larimer, despite his youth, is a well-known and very influential figure in the world of cryptocurrencies and blockchain ideas. Larimer had not previously issued his own cryptocurrencies, but for a long time, he worked on the development of other currencies.
It is not known for sure whether the release of the EOS cryptocurrency was specially selected for the start of a crazy rush around cryptocurrencies, or it was a good coincidence. In any case, on the very first day, the EOSs attracted investments worth 170 million dollars.
Such a flow of investment, of course, threw the course up. On the very first day, the rate increase was 300%, which was 90 cents per coin. A few days later, the course began to storm levels of about two dollars per token. After some time in the history of EOS, there were jumps and up to $ 6. Today, the rate is around $ 2.5 per unit.
The main reason experts first call the authority of Larimer. Daniel secured trading on leading exchanges and the attention of major investors.
However, one cannot but note the technical aspect. The system from the start showed stable operation and a high level of security. There are minor flaws, but they are quite actively eliminated and are not critical. Moreover, there are no ideal projects in principle. Any cryptocurrency has similar micro-problems.
So there are all the prerequisites that the capitalization of EOS, which today is already $ 790 million, will continue to grow.
Features of work and characteristics of EOS
At the moment, the EOS platform has not yet been launched in stand-alone standalone mode. Distribution is currently happening on the Ethereum network. Own platform is still in test mode. The launch of the full version is scheduled for 2018. Then it will already be possible to appreciate the technical nuances of the new currency.
To date, only the following EOS mechanics are known:
- parallel processing;
- asynchronous communication.
The developers decided to build the platform based on DPoS protocols, that is, on the basis of delegated shares. The bottom line is that the transaction will not be confirmed by all network participants, but by special delegates. Delegates will be elected by ownership. This approach significantly speeds up the time of confirmation, and therefore the conduct of transactions.
The idea has already been tested on the Steemit network, in which Larimer worked earlier. Thanks to the delegation, they managed to achieve an average transaction approval rate of 3 seconds. EOS will probably be able to run even faster.
Comparison with the strongest competitors
Bitcoin and Ether are, without a doubt, the flagships of the cryptocurrency market. And the easiest way to understand the potential of new coins is by comparing it with the capabilities of this pair of titans.
Since EOS actively uses the ether network and has a number of similar technical developments on its basis, it is most objective to make a comparison with Ethereum.
First, let’s compare the philosophy of the two currencies.
Ethereum prioritizes generalization. Therefore, the developers of the air minimized the application code to achieve its maximum neutrality. Of course, the reduction in volume is always pleasant and gives opportunities for the work of third-party application developers, but often you have to “reinvent the wheel” by writing the code of functions that are used everywhere.
EOS went the other way. Having estimated what functionality developers almost always use in their applications, the authors of Eos immediately included them in the code of their product.
Governance and consensus mechanisms
- risks for investors from forks (dividing the currency into new types);
- forks increase the risks of competition in several similar networks (for example, forking bitcoin into classic and bitcoin cache);
- catastrophic consequences from major application crashes, a hard fork of the entire network may be needed to fix the bug.
But EOS built a consensus and management system like this:
- DPOS – delegation system;
- a mechanism for safely stopping and debugging broken applications is provided;
- this constitution with legal obligations, which will provide a common legal basis for resolving disputes between participants;
- holding elections of applications that will be funded by the system, applications will need to work to improve the system.
Protection against hackers and dos-overloads.
- one smart contract with an inflated commission can stall the entire network, there have already been precedents;
- a high-commission transaction load overloads the network; in the ICO STATUS, a stream of “expensive” transactions overloaded the network and left the usual transfers in a traffic jam state.
- proportional share on computing power;
- spammers can attack only that part of the network, the right to which gives them the available coins;
- attacks on a specific application cannot put the system as a whole;
- even small startups have guaranteed bandwidth and computing power.
Theoretically, it should be much more stable and stable, both in the technical aspect and in the development aspect. The general constitution should help to avoid forks during major updates, and the system of delegation of protection from dos and other types of hacker attacks.