EOS Wiki ▷ What can the coin do? Cryptocurrency & more!
Our EOS guide gives you everything you need to know about this crypto project. We explain what EOS is, what the project does and give our opinion on the project. We ask that you exercise caution before making cryptocurrency investments and remind you to do your own research.
What is EOS?
How Ethereum EOS is also a decentralized application development platform. This means that developers can build applications on their blockchain and take advantage of this technology.
In contrast to Ethereum, EOS has focused on solving scaling problems from the start and is striving for an enterprise blockchain solution. Ethereum's 15 transactions per second have already proven to be insufficient. The popularity of a single app (Crypto Kitties) meant that the network could not handle the volume of transactions. Since then, Ethereum has been working on increasing the number of transactions per second to increase the load that the network can handle.
EOS took a different path and decided to solve the scaling problem first. It is claimed that EOS will be capable of between 20.000 and Process 50.000 transactions per second. This means that applications like Crypto Kitties would work fine on EOS. This is great news for app developers and users.
The EOS team knows that most companies and app developers want to use server hosting and cloud storage. The platform is therefore also designed for this service and is paid for with EOS.
The ownership model for the EOS project means there are no transaction fees (unlike Ethereum). Once this is coupled with significantly faster transaction speeds, it's easy to see why some are calling EOS an “Ethereum Killer”. Many argue that the project's capabilities make it more attractive than Ethereum for companies to base their blockchain applications on it. If so, the project could really replace Ethereum as the primary application development platform in the crypto space.
In which industries can EOS be used?
With EOS, companies can develop blockchain-based business applications for any niche. Public blockchains like EOS can offer companies the following benefits:
- Accounting: Transactions are stored in the blockchain and cannot be manipulated. This means accurate records and exceptionally traceable bookkeeping.
- More efficient movement: The movement of the products can be safely tracked on the blockchain. This is more transparent than existing systems and also creates efficiency in product tracking, ownership transfer, bookkeeping and payment processing.
- Smart Contracts: Contracts are time-consuming and expensive to create. Digital smart contracts can be created and enforced with the help of the blockchain. This reduces the need for and costs of third parties and saves companies money and time.
- Fast and Global Payment Methods: Traditional banking systems can take 5 days to process a payment. The EOS cryptocurrency can be processed in seconds, free of charge.
The EOS project can benefit a wide variety of companies, and their public blockchain can be applied in ways that we simply cannot currently imagine. However, companies will only use applications based on application developer platforms if they can be sure that they will work properly. This is why it is important that EOS solves scaling problems from the start and many claim that the project can replace Ethereum.
The EOS project is being developed under the name BlockOne. The team is led by Brendan Blumer and the technical magician Dan Larimer.
CEO & Founder - Brendan Blumer
Is a serial entrepreneur with a successful track record. Brendan's business journey began when he was just 15 years old when he found a business opportunity in the online gaming market and started selling virtual assets on a website he created. 4 years later the company was taken over by Internet Gaming Entertainment. Not wanting to miss an opportunity, Brendan moved to Hong Kong to lead the leadership at the age of 18.
Bulmer then moved to Found Accounts.net in 2007, which focused on avatars in the game. Three months later, the company had 75% market share and was generating over $ 1 million in sales per month. Brendan then joined Found Okay.com in 2010. This company offered Asian real estate clients a platform to buy, sell and rent real estate. A year later the business merged with Asia Pacific Properties.
In 2013, Brendan started a new company ii5, a company providing software support services to Indian brokers. In the first 24 hours of the beta release, the company acquired 100.000 properties from over 3500 different brokers.
In 2017, the serial founder founded Block.one and started the EOS project. We think Brendan is a born winner and all evidence suggests he will do the same with EOS.
CTO - Dan Larimer
Dan has held a variety of roles since graduating from Virginia Tech in 2003. In the crypto space, Larimer was responsible for the design, deployment and construction of Steemit. This product was the first social media platform to use blockchain and Dan was CTO of this project.
Larimer also spent time at Cryptonomex and was responsible for the company's technical vision. He wrote technical articles and led the entire development team.
Dan brings a wealth of blockchain experience to EOS and along with Brendan Bulmer we think the project has a very strong team. Both Dan and Brendan have proven their ability to achieve extraordinary things.
The future of EOS
The project already has a large fan base and its main network is scheduled to start in early June 2018. The success of EOS will depend on the number and quality of companies it can convince to build on their blockchain, and not on competitors like Ethereum.
We believe that while Ethereum has an advantage as the first decentralized application development platform, it is not insurmountable. Finally, we need to remember that even Google was the newcomer to the search engine at a time before you overcame Yahoo in the battle for search engine dominance. Ethereum also speaks of the rental fees for mainnet contracts, while these would be free with EOS. This gives EOS a real chance to separate projects from Ethereum while offering better scalability.
EOS has already convinced some of the top 100 cryptocurrencies, such as WAX, to build their marketplace on the EOS blockchain. Since WAX is currently an Ethereum token, one would have expected the project to be based on Ethereum. The fact that they have chosen EOS instead may be a sign that other applications could switch to EOS as well.
EOS has already completed the first phases of its roadmap, including the creation of a test environment and a test network that is as realistic as possible.
The EOS ICO
The project has the longest ICO in cryptocurrency history and was designed to run for 341 days. This approach represents a significant departure from the usual ICO model, where the projects aim to raise as much money as possible as quickly as possible.
Why the different approach of the ICO?
To understand this we need to take the typical approach for ICOs to explain. Typically, projects are funded by setting out 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 achieved, the investor money must be returned and the project team admits the defeat. That means that cryptocurrency projects running an ICO should underestimate their tokens in order to secure the money they need.
This undervaluation of tokens creates a situation where investors are interested in buying as many as possible, knowing that they can sell them for a profit in the secondary market. A wealthy investor looking to buy a large number of tokens can pay a very high transaction fee to put their ICO contribution at the top of the queue and ensure they receive their ICO token allocation. This brings a huge advantage to wealthy investors and penalizes the rest. The result is that ICO projects tend to concentrate their tokens in 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 has recognized this problem and developed a solution.
How does the EOS ICO work?
The ICO began on June 26, 2017 and started with an initial 5-day window in which 200 million tokens were sold. The number of tokens that an investor received was directly proportional to the contribution they made, e.g. Sarah sent 1% of the total contributions and thus receives 1% of the available tokens.
After the first 5-day window, the rest of the tokens are released in 350 consecutive windows (23 hours each). There are 2 million tokens available in each window and the tokens will be distributed to investors in proportion to the contribution made during that period. This means that the tokens sold are close to the market price and wealthy investors do not receive an unfair advantage.
Should I invest in EOS?
It is entirely up to you whether or not to invest in the project. However, we can express our opinion on the project:
- The platform is much more scalable than Ethereum is currently. EOS is lightning fast and can process many more transactions per second than Ethereum.
- Other top 100 projects like WAX are already choosing to build on EOS and not Ethereum.
- We like that the project is focused on business solutions. We believe this strategy will lead to a faster adoption of the platform.
- The project is led by Brendan Blumer and Dan Larimer. We consider these two entrepreneurs trustworthy to lead this project
- The public blockchain won't be released until June 2, 2018. The evaluation of EOS is based on future expectations of success.
- Ethereum has over 500 cryptocurrency projects building on their platform, while only a few have chosen to use EOS. It remains to be seen whether the platform can successfully take over Ethereum's market share.
- The number of transactions per second is only theoretical. We won't know the real speed of the platform until its public blockchain is released.
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We like EOS and we believe the Ethereum project can really offer tough competition. We think there is room for multiple application developer platforms to be successful in the cryptocurrency market and we don't think there will be a case where one platform takes over everything.
Finally, if we look at the traditional technology industry, Windows still has competition from Apple and Linux. We believe that a similar situation will arise in the application development platform space, with dominance shared by some key platforms, and we anticipate that EOS will be among them.