Since its initial launch in January 2018. EOS has hit the headlines and become a focus of media attention. This is due to its characteristics and its record-breaking ICO (Initial Coin Offering) of $4,197,956,135. Among other things, it stands out because among its initial main goals, it set out to develop decentralized applications (dApps) and simplify the integration and programming of smart contracts. But the most noteworthy aspect is its ability to eliminate virtually all transaction fees. The unique EOS platform is highly scalable.
What is EOS?
EOS is a Blockchain-based decentralized operating software system with a public token that allows you to access EOS.
Its goal is to support decentralized applications on a commercial scale by providing all the necessary basic functions. In other words, their goal is to be able to decentralize everything.
Using the protocols of the operating system, EOS will have all these basic functions built in so that developers can do as much as possible in their craft for dApps. EOS itself is very similar to Ethereum, but has been heavily improved, however.
Why was EOS created?
EOS was created to solve most of the problems posed by Blockchain technology. To this end, it decides to build a decentralized blockchain that can support fast and free transactions. In addition to enabling smart contracts to be built on top of it, which will allow developers to run dApps and more – EOS also hopes to build a platform with features similar to an operating system, making it really easy to use. Another goal for EOS is to surpass other blockchains that can also recognize smart contracts, but cannot execute them quickly.
How does EOS work?
The EOS smart contract contains an exchange contract. It helps users create a transaction, which is an operation between two basic types of currencies.
The function of the smart contract is to cross different currencies (all standard EOS coin types) by each anchor with the value of the main EOS chain, and then initiate a mutual exchange of transactions. At this point we need to clarify that this type of exchange is different from a “traditional” Blockchain exchange.
Moreover, the delegated proof-of-stake process serves as the algorithmic basis of the blockchain. This means that the proof-of-stake is based on the participation of all nodes in the network with coin shares, i.e. EOS assets greater than zero. These shares are assigned probabilities proportional to the value of the share, based on which nodes that update the blockchain are selected.
How secure is the network?
To meet its goals, EOS has proposed a new Blockchain algorithm similar to, but different from, the well-known Proof of Stake. This algorithm has become known as ” Delegated Proof of Stake “. This new algorithm proposes to change the way new blocks are generated on the network. The algorithm assumes that existing token holders themselves can choose who will produce the block. No special requirements are needed to take part in this selection process. Any network user can become a block producer within the same network. However, once a user is selected as a producer, he or she must generate the blocks intended for him or her. If you do not follow these guidelines within 24 hours, you will be fired, and a new delegate will be appointed as producer.
Advantages of EOS
One of the main advantages of EOS is the ability to send and receive transactions anonymously. It’s like paying with cash in the real world. But that’s not the only plus. Other advantages are as follows:
- EOS can be seen as an enhancement of Ethereum.
- Unlike Ethereum, the EOS network is designed to no longer charge for network transactions, and holders of EOS tokens have appropriate rights to use the network.
- Another of the great advantages of EOS is the continuity of continuous innovation of existing properties of other Blockchain platforms.
- It is designed for high performance and high scalability.
- Transactions on the platform are completely free, with no loss of speed.
- If the platform falls victim to hacking attacks, it can be immediately restored to its previous secure system state.
EOS disadvantages
Just as it has advantages that are part of its appeal, the EOS also has some disadvantages , which are part of its nature. For example:
- One of its main advantages can become a disadvantage, because by enabling anonymous operations, it also allows some people to use cryptocurrencies anonymously to commit crimes.
- The procedure in the area of delegated proof-of-stake algorithm is often considered by many to be a disadvantage.
- Network participants with large assets can use their influence and gain an advantage over other traders.
- Many of its functions exist so far only in theory and have not yet been implemented in practice.
- The data of its users is not protected from those who are responsible for creating blockchain blocks.
- The EOS ERC-20 smart contract prevents the transfer of tokens after distribution.
