What is EOS?
Developed and launched by the company block.one, EOS has only recently evolved into a cryptocurrency, after being an ERC-20 token. It was developed to serve as a platform for smart contracts, launching de-centralized apps (dApps) and hosting decentralized storage for enterprise solutions. The aim was to provide feeless transactions and higher throughput. Coin supply is currently limited to roughly 1 billion (increasing by 5%/yearly or as voted by the community) and circulating supply is at 906 million.
Advantages
One of the main advantages of EOS is its scalability. Other pros include:
- Governance model – trust is formed based on how invested a person is in the community
- Adaptability – the platform is easily integrated into other products and serves as the basis for the development of innovative solutions
- Feeless transactions
Disadvantages
As with other solutions on the crypto market, nothing is perfect. One of the main disadvantages is the centralized validator nodes. They are limited in numbers and there is room for speculation regarding the security. However, it’s believed that the consensus algorithm would flush out any potential malicious user. Whether you choose to embrace EOS’s system or not, you’ll have to be content with:
- Early consensus stage – dPoS requires some maturity to work reliably and the coin is at an early stage currently
- No official wallet – so far, only third-party solutions exist, which some may consider disconcerting
History and Evolution
EOS was first envisioned as a competitor to Ethereum by Brendan Blumer and Daniel Larimer, the founders of the company block.one. They launched the first test net back in September 2017. To build up a user base, ERC-20 tokens were released as an ICO on the 31st of January 2018. The initial goal of 1 billion in funding was surpassed and the total amount reached was 4 billion. After 4 test nets, currently there’s an official blockchain up and running from the 1st of June 2018 and the genesis block was generated on June 8, 2018.
EOS Blockchain
The blockchain technology underlying EOS’s ecosystem is decentralized with development efforts concentrated in-house by the block.one company. The primary benefit of this system is that users can expect frequent updates and continuous improvement without worrying about meddling in the blockchain itself. The consensus algorithm used is a modified PoS version. It is called Delegated Proof of Stake with an added Byzantine Fault Tolerance. By using this method, the problem of scalability is solved at the cost of having fewer verification nodes. Block time is 500ms and the size is dynamic (no hard limit), with block producers earning 1% of the entire 5% inflation of coins, as a reward.
EOS Nodes
Despite the lack of mining involved, we still have the need for nodes to confirm transactions. In the case of EOS, there are two types:
- Light nodes – standard type, operating after synchronizing with other higher-ranking nodes, these are how most wallets operate
- Validator nodes (Delegates) – specific to EOS, their number is limited to 21 and they’re chosen at the beginning of the blockchain. Their job is to generate and confirm blocks, while also creating new coins
Noteworthy Features
Something that distinguishes the EOS cryptocurrency from most other coins has to do with its core code and it’s called Parallelism. Block.one have enabled the support for multi-threaded workloads, which means that transactions can be processed much quicker, making use of higher core and thread count CPUs. This, in turn, translates into better scaling of the network at lower costs.
How to Get EOS
Having in mind that EOS coins are only stakeable, yet not mineable, the only way to obtain some is by going through an exchange and buying.
Where to Buy EOS
To get started with staking EOS you’ll first need to obtain some amount of coins. Below you’ll find my top 3 suggestions for exchanges that allow buying the currency for fiat money.
Wallets for EOS
Once you’ve decided on which exchange you’d like to purchase EOS from, you’ll need one more thing to get started – a wallet. With its help, you’ll be able to store, transfer and stake your coins. Currently, there’s no official wallet available, however, I’ve prepared a couple of replacements for you.
Alternative Wallets
Generally, alternative wallets offer more flexibility to the user. Whether that be lower hard drive footprint, increased security or improved user interface, you can always find something that fits your needs.
Desktop Wallets
Online Wallets
Mobile Wallets
Staking EOS
To earn a profit with the EOS cryptocurrency, you should either aim to become a validator node or simply obtain a large as possible quantity of coin and stake it. To learn more about the process of staking itself, I’ve compiled a detailed explanation, including guidelines for other popular coins.
An upcoming opportunity for a return on your investment in EOS is the possibility of renting out computational resources.
News and Useful Links
To stay up to date with all relative information surrounding EOS coins and its developer company block.one, check out the links below, I’ve gathered a list of trustworthy sources.