What Is EOS? All About the Crypto Currency EOS For Beginners Guide

EOS crypto coin – a serious challenger for Ethereum?

With the statement “We decentralize everything”, EOS made a very provocative and at the same time promising claim in its white paper even before its initial coin offering (ICO). In the following article, we show you whether the attack on Ethereum succeeds, which goals the EOS token pursues and who is behind EOS.

EOS Goals – The Better Ethereum?

EOS is comparable to Ethereum in terms of functionality and objectives. Like Ethereum, EOS wants to create a platform based on the blockchain. Commercial decentralized applications are to be developed on this, by providing the developer with all necessary core functionalities in order to create blockchain applications using libraries, similar to web-based frameworks.

Two features in particular attracted a lot of attention:

  • The transaction costs: There should be no fees.
  • Scalability: Millions of transactions per second should be possible.

Compared to Ethereum, EOS offers a delegated proof-of-stake – DPoS (Ethereum is planning a proof-of-stake in phase 4). Proof of stake algorithm – without “delegated” means that new tokens are unlocked simply by possession in your wallet (staking). The owner also uses the share to validate the transactions on the blockchain, thereby contributing to the security of the network. “Delegated” essentially means that members of the network choose “Witnesses” to validate the transactions. For EOS-based developments, this means that the companies themselves must hold the token to validate transactions, or other EOS token holders can delegate their share to other developers and companies. The transaction itself is free of charge. It’s all about token ownership.

Critical opinions believe that a small group of individuals could control the platform through the DPoS. To what extent this will actually occur remains to be seen.

Another special feature is that hacks and other serious errors in the system as part of the “supermajority consensus” (instead of hard forks) can be remedied by rollback actions, ie by restoring previous databases. This would be a clear advantage over Ethereum.

In all of the explanations, however, it should be noted that EOS is still in the conceptual status. Time remains to be seen to what extent an implementation will actually take place. In contrast, Ethereum has developed a lot. In addition, Ethereum is also likely to manage one million transactions per second with Raiden and Plasma. As of September 2017, Ethereum still has a mile-wide lead that EOS has to catch up with.

The block.one company behind EOS

The company behind EOS is called block.one and was founded by Dan Larimer, who is also the co-founder of the two cryptocurrencies BitShares and Steem. Dan Larimer first founded BitShares in 2014. This project stood out due to its horizontal scalability, which enabled up to 100,000 transactions per second. Steem then followed a kind of decentralized reddit. Dan Larimer has now left both companies.

By the way, Block.one is registered in the Cayman Islands.

The one-year ICO

The token’s ICO started on June 27th, 2017 and ends on June 1st, 2018. The ICO was and is divided into two phases. In the first phase, 20% of the tokens were sold at ETH for about $ 185 million. In the second phase, which is divided into 350 parts by June 1, 2018, each lasting 23 hours, a further 70 percent of the tokens will be sold. 10 percent are allocated to the company and the employees of block.one. The goal behind this unusual ICO is, according to the company, to give interested parties enough time to inform themselves about the project and to make an informed decision.

Since EOS is still largely conceptual, the ICO was carried out on an Ethereum basis. As with OmiseGo, it will have its own blockchain in the future.

That the ICO was so successful is due to the great marketing of block.one. Mainstream media, such as Reuters and the New York Times, have written about EOS before the ICO. Probably because of this, EOS entered the top 10 market capitalization of all cryptocurrencies immediately after phase 1 of the ICO.

Controversial opinions about the EOS coin

Opinions about EOS on the Internet are very controversial. On the one hand, there are supporters who say that Dan Larimer, the founder of BitShares and Steemit, has a lot of experience and reputation in the project. Because of this, according to Larimer supporters, the project “must” inevitably be successful. The implementation of the big goals is only a matter of time.

On the other hand, there are many opinions that say that Dan Larimer should have completed his other two projects before starting the next one. Many see Dan Larimer as a symbol of the ICO madness that raged in 2017. Their opinion: If someone collects hundreds of millions of dollars as part of their third ICO and makes great promises in their white paper, then it cries out for fraud. Then, in the opinion of those, it is only about collecting as much money as possible within the framework of the ICO and not about the project.

Is EOS a good investment?

This question is currently difficult to answer (as of September 2107). After a real mania broke out at the start of the coin, EOS was soon over 5 euros per coin and in terms of market capitalization in the top 10, things have now become calmer around EOS. In the wake of the market turmoil at the end of August / beginning of September 2017, the price of EOS fell again to EUR 0.70. How it will continue with EOS is unclear. According to the white paper, EOS has great potential and could make a lot of talk in the future.

Ethereum has the first mover effect when it comes to decentralized apps. However, there are more and more platforms (such as EOS) on which smart contracts can be programmed on the blockchain. It remains to be seen whether block.one will become a strong competitor with its token.

What do you think about EOS? Rip off or promising cryptocurrency?

We appreciate your opinion in the comments.

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