What is EOS? – New Zealand’s EOS Overview
The EOS blockchain was launched in June 2018, by leading blockchain developer, Dan Larimer. EOS has been dubbed an ‘Ethereum killer,’ thanks to allegedly faster and more scalable Ethereum-like capabilities. The EOS blockchain is designed to allow for up to 4,000 transactions per second. However, some controversy surrounds this claim.
What is EOS?
EOS took the cryptocurrency market by storm in 2018. Between 2017 and 2018, the initial EOS ICO raised over $4 billion. This made the EOS ICO the most successful to date.
Fronted by celebrated blockchain developer Dan Larimer, the EOS vision was simple. EOS would take on decentralized application development platforms like Ethereum. Specifically, by promising faster transaction processing, infinite scalability, and improved ease of use.
EOS Blockchain Key Features
Decentralized apps (D’Apps) are the apps (including entirely new blockchain projects) which are developed on platforms like Ethereum. Instrumental in ICOs and Smart Contracts, D’Apps create the foundations of entire cryptocurrency based economies. Sadly, few D’App development platforms are perfect.
Up until the launch of the EOS blockchain, Ethereum was considered the go-to platform for D’App development. However, several issues had begun to frustrate developers.
Weaknesses in the Ethereum blockchain:
- D’Apps can only run on Ethereum when users pay fees in GAS to cover the use of network resources.
- Ethereum transactions take an average of 15-seconds to settle.
- The Ethereum Virtual Machine which makes D’App development possible is often criticized as limited and challenging to learn how to use.
Strengths of the EOS blockchain:
- The EOS blockchain is entirely transaction fee-free.
- EOS can settle thousands of transactions per second.
- The EOS blockchain uses parallel processing to execute.
- D’Apps and Smart Contracts are faster. (For the benefit of end-users).
- EOS offers D’App developers a more user-friendly development platform and free app hosting.
To make free-to-use D’Apps and instant transactions a reality, EOS uses a self-funding delegated proof of stake consensus mechanism. Unlike Ethereum which raises revenues using GAS payments, EOS generates 5% natural inflation each year. Funds are then shared between EOS block producers. (Network participants who process transactions.)
In April 2018, EOS coin prices reached as high as $21. Since then, prices have pulled back sharply to $2 – $3. However, price pullbacks haven’t just been the result of broader bear market conditions.
Just 2-days after launching, the EOS blockchain crashed. This garnered criticism from investors, who argued that EOS had been rushed to completion by developers. Since this time, independent analysts from Whiteblock and ConsenSys, have also argued that EOS is not a blockchain, but a centralized cloud computing platform.
According to Whiteblock and ConsenSys, EOS is only capable of processing 250 transactions per second (not 4,000), is susceptible to Sybil attacks, and uses a centralized core architecture. Naturally, EOS and lead CTO Dan Larimer refute these claims. However, there is a case to be made that EOS might have come to market a little too quickly in 2018.
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