When Bitfinex were searching for a platform that they could invest in, the prioritized the need for the platform to be fast and transparent. Hence, the $100 million investment in EOS did not come as a surprise. In fact, the exchange stated that EOS has a huge potential to be fundamentally transformative for the cryptocurrency industry. This huge partnership signals a vote of confidence especially for EOS supporters because it is a relatively new platform.
Using this platform, users have the opportunity to launch decentralized applications. However, one of the main reasons that it has gained mainstream attention is because there are no transactions fees to use EOS. Therefore, developers can utilize EOS on a huge scale as many are utilizing Ethereum which is charging transaction fees to use the platform. Despite many criticisms, EOS is seemingly becoming a strong contender for Ethereum’s platform. In the future, EOS wants to differentiate himself from their competitors.
So, what makes EOS unique?
1. Lengthy initial coin offering
At the moment, EOS is still in the midst of their token sale stage. Unlike many other initial coin offerings, EOS’s ICO lasts for 350 days. In the cryptocurrency world, is not unlikely to see an initial point offering that would be over within just a few minutes. For instance, EOS’s partner which is Bancor managed to raise $153 million within just a few minutes.
To justify the long duration, EOS has stated that they want to avoid the high speculation that initial coin offerings typically create. Therefore, the lengthy duration of the initial point offering will ensure that people will receive their fair market value. On top of that, some may worry that the interest in the cryptocurrency will wither throughout the year. However, the developing team believes that they will continue to receive support throughout the year. The initial coin offering for EOS started in June 2018. Within the first five days, they manage to collect $185 million.
To avoid people hoarding these tokens, these coins are sold in periods of 23 hours. On top of that, the price of the tokens is set using market demand. As a result, this stops people from owning unfair advantageous when they want to purchase tokens. Buyers can only purchase the EOS tokens using the ETH tokens.
2. The developing team
The powerful team behind EOS is based in the Cayman Islands. The goal of their venture is to decentralize everything. On top of that, the founder of the cryptocurrency is a serial entrepreneur that has to establish no less than five different ventures. With the capability that this team has, it won’t be a surprise that this project will be a success.
3. The white paper
As it is with any other project, EOS has released their white paper which is a holistic blueprint for any blockchain project. In their white paper, they have recently mentioned that the platform will enable full vertical and horizontal scaling. In other words, EOS is a platform which provides support to build decentralized applications through the blockchain technology. One thing that users will notice when they are going through the white paper is that the developer does not claim responsibility for any claims the right on the paper. On top of that, they also claim that they will not take responsibility for any damages which arises from the use of statements in the paper.
Seeing these statements, this doesn’t exactly inspire confidence in the white paper. However, this doesn’t seem to be a problem for the public as EOS is currently number nine in the world’s cryptocurrency ranking. As EOS recently stated that the platform would not charge users for any transaction fees, the white paper explains how it will do this. On top of no transaction fees, the platform’s claims to be able to support millions of transactions within a second. As mentioned earlier, EOS’s main goal is to be a platform which can launch decentralized applications. EOS wants to be the first platform in the world that can coordinate the delivery of authenticated messages to accounts.
4. Usage of proof stake
With EOS, the platform utilizes a mechanism which is called proof of stake. In comparison, Bitcoin utilizes proof of work. Therefore, EOS effectively avoids the troubles with the centralization of mining power and potential forking. The way that the proof of stake system works is that it will utilize the voting element in which blocks will be produced by representatives through a continuous approval voting system. Using this system, new representatives will be selected after 21 blocks.
Miners will find this system highly useful because they can cooperate with each other instead of competing with each other for blocks. This is different from anything that there are seeing in the cryptocurrency space today especially with people mining Bitcoin. Understandably, there is tension in the cryptocurrency space as the one with the largest computing power tend to be ahead of others. In this case, it means that a fork is less likely to happen with EOS.
5. Implementation of Bancor Protocol
Block.one which is the creator behind EOS blockchain had designed a decentralized autonomous community. They recently teamed up with Bancor to create the Bancor Protocol which will be utilized for their convertible Smart tokens. EOS has announced that the protocol Bancor will be utilized on the platform by 2018. Therefore, this protocol will make it easier for users to convert between any tokens. The decision to select this protocol did not come easy because it only came after months of research.
To provide the public with an idea of how the protocol will look like, they have released the sample code to the public. At the moment, the Bancor protocol is only available on the Ethereum network. At the beginning of the creation of EOS, there has been a tension in realizing the vision of enabling a decentralized platform. Therefore, the creator of EOS articulated his vision to create one of the most secure and accessible blockchains. With this protocol, the team hopes that it will be much easier to use standardized token contracts and hold them without the interference of any centralized figures.
One of the benefits of Bancor offers liquidity. On top of that, this benefits users because it can be utilized together with their smart contracts. On top of that, the protocol utilizes built-in convertibility which can be utilized through their smart contract. It also utilizes an innovative token connector which enables continuous liquidity for all the compliant tokens. Therefore, EOS is on its way to establishing themselves as a future predictable value exchange as it is unnecessary for the platform to match two parties in an exchange.
6. Their platform works
Being able to audit the performance of the project is also essential to prove that a public that they have a working platform. An internal review was recently conducted EOS, and it was found that they can handle 10,000 transactions per minute using the network. In the long run, EOS hopes to achieve their goal of conducting 1 million transactions per second. At the moment, this introduction is already impressive, but they believe that there will be more updates in the future that they can share. Due to recent developments in the platform, the infrastructure can now run applications more conveniently in parallel.
7. Shared database access
Moreover, it is now easy for people to share database access without requiring complex communication between multiple applications. On top of all these development, one of the most attractive features of the platform is how the business allows developers to use horizontal scaling. For people that don’t want to scale their business, EOS also offers a streamlined approach that is tailored to those who don’t want to expand their platform.
8. More account recovery options
For instance, Ethereum has major flaws because it has scalability issues. Therefore, EOS hopes that with all the protocol that it has adopted, the network can help support more developers around the world. They also created community-based security protocols which can help users to recover their account through the help of their friends and family.
What’s next for EOS?
The EOS.IO Dawn 1.0 is scheduled for release sometime is in me, and it is expected to be stable for that everyone can launch a network easily. At the moment, the team is doing good as they are ahead of their schedule and are working hard to transition into the next phase of their roadmap. They hope to be able to reach the third phase of the project and release the EOS Dawn 2.0 by then. The EOS platform represents the next generation of smart contract blockchain technologies which can address the current flaws within the blockchain.
From a whole new perspective, EOS represents the potential in which the platform can grow into something big. Ethereum is an example of a cryptocurrency which has been marketed as a world computer. Meanwhile, EOS wants to be a large-scale decentralized platform which can make it into the commercial world. The steady stream of funds which are coming in for their project signals that their exchange is doing something right.
If anything, we will be continuing to see the benefits of blockchain technology manifesting our day-to-day lives. One of the key benefits of blockchain technology enables each token holder to have full ownership of their assets. In return, the owners will have a greatly reduce counterparty risks, especially when dealing with billions of dollars worth of transactions.