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What is EOS Cryptocurrency and how does it work?
Our EOS guide will tell you everything you need to know about this upcoming cryptocurrency project. We’ll explain what EOS is, what it does and give our opinion on the project. We do urge caution before making any cryptocurrency investments and encourage you to do your own research.
What Is EOS?
Like Ethereum, EOS is a decentralized application developer platform. This means that developers can build apps on top of their blockchain and enjoy the benefits of this technology.
Unlike Ethereum, EOS has focused on solving scaling problems from the start and aims to be an enterprise blockchain solution. Ethereum’s 15 transactions per second has already been shown to be inadequate when the network ground to a halt in December 2017. The popularity of a single app (Crypto Kitties) meant that the network could not cope with the transaction volume. Since then, Ethereum have been working on increasing the number of transactions per second to increase the load the network can handle.
EOS have taken a different route and have decided to solve the scaling issue first. It is claimed that EOS will be able to process between 20,000 and 50,000 transaction per second. This means that apps like Crypto Kitties would work on EOS seamlessly. This is great news for both app developers and users.
The EOS team understand that most businesses and app developers want to use server hosting and cloud storage. As a result, the platform has been built to offer this service as well and is paid for with EOS coins.
The ownership model for the EOS project means that there are no transaction fees (unlike Ethereum). So once this is combined with significantly faster transaction speeds, it is easy to see why some are labelling EOS as an “Ethereum Killer”. Many argue that the capabilities of the project make it a more attractive option than Ethereum for businesses to build their blockchain applications on. If so, the project could really replace Ethereum as the primary application developer platform in the cryptocurrency space.
Founder Dan Larimer Explains The Project At The Consensus Conference
What Industries Can EOS Be Used In?
With EOS, businesses will be able to create blockchain based enterprise applications for any niche. Public blockchains like EOS can give companies the following benefits:
- Accounting: Transactions are stored on the blockchain and cannot be tampered with. This means accurate records and an exceptionally traceable audit trail.
- More Efficient Supply Chains: The movement of products can be tracked securely on the blockchain. This is more transparent then existing systems and also creates efficiencies when it comes to tracking products, transferring ownership, record keeping and payment processing.
- Smart Contracts: Contracts are time consuming and expensive to draw up. Digital smart contracts can be created and enforced with the help of the blockchain. This reduces the need for and cost of third parties, saving businesses money and time.
- Fast And Global Payment Methods: With traditional banking systems it might take 5 days for a payment to be processed. The EOS cryptocurrency can be transacted in seconds and at no cost.
The EOS project can benefit a wide variety of businesses and their public blockchain may be applied in ways we simply cannot conceive of right now. However, serious businesses will only use apps built on application developer platforms if they can be assured it will work properly. This is why EOS solving scaling issues from the start is such a big deal and why many are claiming that the project can supercede Ethereum.
The EOS project is being developed under a company called BlockOne. Heading up the team are Brendan Blumer and technical wizard Dan Larimer.
CEO & Founder – Brendan Blumer
Is a serial entrepreneur with a a winning track record. Brendan’s business journey started at just 15, when he found a business opportunity in the online gaming market and started selling virtual assets on a website he made. Fast forward 4 years and the business was acquired by Internet Gaming Entertainment. Not being one to pass up an opportunity, Brendan moved to Hong Kong to lead the operation at the age of 18.
Bulmer then went on to Found Accounts.net in 2007, which focused on in-game avatars. Three months later, the company had 75% market share and was bringing in over $1M in sales per month. Brendan then went on to Found Okay.com in 2010. This company provided Asian real estate customers with a platform to buy, sell and rent property. A year later, the business merged with Asia Pacific Properties.
In 2013 Brendan started a new venture ii5, a company offering software support services to Indian realtors. Within the first 24 hours of the beta release, the company acquired 100,000 properties from over 3500 different brokers.
In 2017 the serial founder went on to establish Block.one and started the EOS project. We think Brendan is a born winner and all the evidence suggests he will do the same with EOS.
CTO – Dan Larimer
Dan has held a variety of positions since graduating from Virginia Tech in 2003. In the crypto space, Larimer has been responsible for designing, deploying and building Steemit. This product was the first social media platform that used blockchain and Dan was CTO of this project.
Larimer has also spent time at Cryptonomex and was responsible for the technical vision of the company. He authored technical papers, as well as managing the entire development team.
Dan brings a wealth of blockchain experience to EOS and together with Brendan Bulmer, we think the project has a bit of a dream team. Both Dan and Brendan have proven they have been able to achieve extraordinary things by themselves so together the possibilities are endless.
The Future Of EOS
The project already has a massive following and their main net is set to be launched at the beginning of June 2018. The success of EOS will be determined by the number and quality of businesses it can persuade to build on its blockchain, rather than competitors like Ethereum.
TotalCrypto thinks that although Ethereum has a first mover advantage, this is not insurmountable. After all, we have to remember that Google was the new kid on the block at one point, before going on to crush Yahoo in the battle for search engine dominance. Ethereum is also talking about rent fees for mainnet contracts, whereas these would be free on EOS. This provides EOS with a real opportunity to move projects away from Ethereum, whilst also offering them better scalability.
EOS has already pulled off a coup and have persuaded top 100 cryptocurrency WAX to build their marketplace on the EOS blockchain. Given that WAX is currently an Ethereum token, it would have been expected that the project would build on Ethereum. The fact they chose EOS instead may be a sign of other things to come from other crypto projects.
EOS have already completed the first few phases of their roadmap, including creating a minimum viable testing environment and test network. We will let the team outline the plans for the rest of 2018 and beyond:
The EOS ICO
The project has had the longest ICO in cryptocurrency history and has been designed to span 341 days. This approach is a significant deviation from the usual ICO model, where projects aim to raise as much money as quickly as possible.
Why The Different Approach To ICO?
To understand this, we must explain the typical approach to ICOs. Usually projects get funding by outlining their vision, publishing a white paper and setting the funding goal required to make the project happen. With ICOs, it’s all or nothing; if the funding goal is not met then the investors funds have to be returned and the projects team concede defeat. This means that cryptocurrency projects holding an ICO are incentivised to undervalue their tokens to help secure the funding they need.
This undervaluing of tokens creates a situation where investors are incentivised to buy as many as possible, knowing that they can sell these at a profit on the secondary market. A wealthy investor looking to buy a large number of tokens can pay a very high transaction fee to put his ICO contribution to the front of the queue and ensure they get their ICO token allocation. This gives a big advantage to wealthy investors and disadvantages the rest of us. The result is that ICO projects tend to have their tokens concentrated into the hands of a limited number of very wealthy investors. Token concentration like this is usually bad news for cryptocurrency projects, as these ‘whales’ can have significant control over the price of that cryptocurrency. EOS have seen this problem and came up with an approach to combat it.
How The EOS ICO Works?
The project has tried to solve the usually problems plaguing normal ICOs:
- The advantage wealthy investors get in the usual model.
- Underpricing of tokens.
The ICO started on 26th June 2017 and this started an initial 5 day window, where 200 million tokens were sold. The amount of tokens an investor got was directly proportional to the contribution they made e.g. Sarah sent 1% of the entire contributions for the window and therefore gets 1% of the tokens available in the window.
After the initial 5 day window, the rest of the tokens will be released in 350 consecutive windows (lasting 23 hours each). 2 million tokens are available in each window and the tokens are distributed to investors in proportion to the contribution made in that period. This means that the tokens sold achieve close to the market price and that wealthy investors get no unfair advantage.
The EOS ICO ends on the 1st June 2018, after which the project will move to its own blockchain.
Important: If you bought your EOS tokens on an exchange, you will need to register them before June 2nd 21:59:59 UTC. Failure to do so will result in you losing your tokens. Need help? Our step by step EOS registration guide shows you how.
Should I Invest In EOS?
It’s entirely up to you whether you invest in the project or not. We can give our opinions on the project though:
- The platform is much more scalable than Ethereum is currently. EOS is lightning fast and can process many more transactions per second than Ethereum can.
- Other cryptocurrency top 100 projects like WAX are already deciding to build on EOS, rather than Ethereum.
- The project could be an Ethereum killer and is priced at a fraction of Ethereum’s market cap.
- TotalCrypto really likes that the project is focusing on enterprise solutions. We feel that this strategy will lead to faster adoption of the platform.
- The project is lead by Brendan Blumer and Dan Larimer. We consider these guys to be a cryptocurrency dream team.
- The public blockchain will not be released until the 2 June 2018. The valuation of EOS is based on future expectations of success.
- Ethereum has over 500 cryptocurrency projects building on it’s platform, whereas only a handful have committed to using EOS. It still remains to be seen if the platform can successfully eat into Ethereum’s market share.
- The number of transactions per second is only theoretical. We will only know the true speed of the platform once its public blockchain has been released.
The three main ways of buying EOS are through Binance and Coinbase or using a CFD broker like IQ Option. Fortunately, we’ve put together a nice guide for you on exactly how to buy EOS – Check it out here.
The TotalCrypto Team love EOS and we think the project can really provide stiff competition to Ethereum. We think that there is room for several application developer platforms to be successful in the cryptocurrency market and do not think it’s going to be a case that one platform takes it all.
After all, if we look at the traditional technology industry: Windows still has competition from Apple and Linux. The Total Crypto Team thinks that a similar situation will play out in the application developer platform space, with dominance being shared by a few key platforms and we predict EOS will be amongst them.
Yes, EOS has a lot to live up to when their public blockchain is released in June 2018. However, we are confident that Brendan Blumer and Dan Larimer can deliver a truly amazing product. Will EOS succeed? We will just have to wait and see.
Disclosure: The TotalCrypto Team hold a position in this cryptocurrency.
Below we’ve listed some key resources relevant to EOS Coin.
? Safest EOS Wallets
Hardware wallets are the safest crypto storage solutions available. These wallets store your private keys and do not expose them to the outside world, making your crypto as safe as possible. Maybe you should treat your crypto like the million dollars it could well be worth one day?
Can’t decide if Trezor or Ledger is best for you? Just check out our Ledger Vs Trezor comparison guide.
? Best Free Wallets
As EOS is a ERC-20 token, you can use any wallet that is compatible with Ethereum.
- MyEtherWallet – Struggling? We cover everything in our MEW step by step walkthrough.
- Exodus – Need help? Just check out our dedicated Exodus wallet guide.
? Best Apps To Track Your EOS Investment
Want to learn more about one of the most exciting application developer platforms? Just jump into the EOS white paper.