EOS is a blockchain network that was created to support smart contracts and decentralized applications. It focuses on scalability, transaction speed and requires no transaction fees. The network uses a form of Proof of Stake protocol, with the native coin called EOS. Block one had an EOS coin sale in June 2017, selling more than 200 million coins. Over the next year, 900 million coins were sold for around $4.2 billion. The last 100 million were kept as development funding, linearly released for 10 years after mainnet went live on June 6, 2019.
What is EOS?
EOS is a blockchain network that was created to support smart contracts and decentralized applications. It focuses on scalability, transaction speed and requires no transaction fees. The network uses a form of Proof of Stake protocol, with the native coin called EOS. Block one had an EOS coin sale in June 2017, selling more than 200 million coins. Over the next year, 900 million coins were sold for around $4.2 billion. The last 100 million were kept as development funding, linearly released for 10 years after mainnet went live on June 6, 2019. What Is a Smart Contract? EOS enables smart contracts to run on the blockchain. A smart contract, also known as a “contract”, is a set of instructions to carry out an agreement.
How does it work?
Block one created for EOS represents a "worm" block, containing 3,280,000,000 tokens. The system allows for the distribution of EOS tokens to the nodes, who must devote a certain percentage of their processing time to maintain the system. Nodes compete for contracts, fees and blocks, with the winner rewarded with coins. Nodes are awarded blocks on a 1-to-1 ratio, with the average block reward being about 2.6 coins. When a block is completed, the block reward is subtracted from the amount of EOS left to balance a one-sided risk for nodes. As of June 19, 2018, block one accounts for about 1.79 billion EOS, as all but 0.14% have been mined. Some of this discrepancy is due to EOS tokens being sold to fund development, a common practice in the crypto world.
EOS Tokens
An EOS Token is issued for all accounts in the EOS blockchain network. Each EOS Token is linked to a block, and each block has a specific number of EOS Tokens attached. For every EOS Token held, the owner receives a block reward of one EOS Token per block mined. The more EOS Tokens you own, the more blocks you can get. If you lose or waste your EOS Tokens, you can also burn them for a smaller amount of EOS Tokens. However, they do not lose their value as it is put back into the system. EOS Tokens are transferable, but they can only be held by persons who are in possession of a private key. They can also be transferred with a smart contract to another user or wallet with the intention of adding more EOS Tokens to their account. Token Abstraction Layer Part of the EOS Platform, EOS.
What are the benefits of using EOS?
EOS is an innovative network with a very unique and open approach, placing no barriers for developers to build on the blockchain and creating applications that are decentralized and controlled by the community. EOS enables developers to create their own native application and remove the need to connect with a third party, allowing them to issue tokens, write smart contracts and publish applications to the EOS blockchain. There are 5 application platforms created by Ethereum Foundation and EOS.io team. Each of the platforms are the different computing model where users can create their applications, where smart contracts can be created and deployed on the network. Ripple, the blockchain platform used by financial services company, has also expressed interest in EOS.
Conclusion
Since 2017, Ethereum has become the cryptocurrency of choice for many ICOs. While it is not likely that EOS will completely replace Ethereum as the cryptocurrency of choice for ICOs, there is a definite chance that EOS will take off in the coming months. In 2019, there will likely be a lot of competitive ICOs with the announcement of the second ICO offering. Investors should be watching to see which ICOs succeed with their ICOs.