Based on the market capitalization of cryptocurrency, EOS ranks at the ninth place. It has recently reached the valuation of $6 billion with the corresponding price of $8.15. For a cryptocurrency, EOS has reached an impressive feat because the market is currently in a bearish mode. In fact, EOS is proving to be a strong contender for other cryptocurrencies out there because it has shown relative stability through this turbulent period.
EOS was created by Block.One, which is a blockchain start-up based in the Cayman Islands. The EOS platform aims to provide a decentralized my contract enabled platform that will make it easier for developers to build their decentralized applications. In fact, many have deemed EOS a platform that enables developers to do things they can’t do on the Ethereum platform. This is true to some extent because EOS is offering a fundamental solution to flaws in issues on the Ethereum blockchain.
EOS is a highly unique cryptocurrency because it utilizes proof of stake, which is a technology that uses less energy for mining. On top of that, they are going to be offering the platform with no transaction fees at all. At the moment, there has been an internal audit done on their system, which proved that the platform could take up to 1,000 transactions per minute. Despite this, the team believes that the platform will be fully ready to take up hundred thousand volumes per second. It also offers a parallel scalability, which comes in handy for developers.
The EOS blockchain supports the process of creation verification of several decentralized applications. The proof of stake protocol that the platform adopts will assist in the decentralization of independent organizations. Dan Larimer, a chief technical officer of EOS, has been fully credited as the mastermind behind this concept because he has massive experience with cryptocurrency algorithm. On the EOS software, users can also expect to utilize the new blockchain infrastructure, allowing parallel and horizontal scaling. On top of that, EOS also offers users the capability to authenticate any use of the database to schedule several pounds across the platform. Therefore, the result of EOS is a highly integrated blockchain infrastructure that is useful for developers.
For developers, they may consider EOS as a possible platform to develop their ideas. There are no transaction fees, and there is a quick implementation of decentralized applications. Since the creation of Bitcoin back in 2008, this has created opportunities for the blockchain technology to be improved. Therefore, the EOS developers believe that is important to generalize the use of the technology by diminishing the transaction fees and providing widescale support throughout the platform.
Despite this, there are still critics who are analyzing the potential of EOS within the cryptocurrency space. Therefore, the capabilities of EOS have gained huge attention, especially from venture capitalists and large corporations that are interested in the blockchain. In fact, there have been several large-scale partnerships created with EOS, which puts it on its way to becoming one of the most powerful blockchain-enabled platforms.
One of it comes from a cryptocurrency exchange called Bitfinex, which recently announced that they would establish a decentralized exchange based on the EOS blockchain. Before you pledge your support for EOS, it is important to understand several key features of the platform.
- It has been accused of centralizing its operations
In the cryptocurrency community, it is important to analyze the developer behind the creation. Underlying the creation of EOS is a man called Dan Larimer. He is one of EOS developing team members and he is popular in the cryptocurrency space, but he has an important point to make. It matters a great deal for cryptocurrency members to know more about the individual creating a cryptocurrency because their vision is reflected in their creation.
When asked to explain more about EOS to the cryptocurrency community, Dan stated that he had no time to explain everything to people who don’t believe in his idea. However, the cryptocurrency community disagrees with this notion because the cryptocurrency is all about initial coin offering and creating a community around it. On top of that, EOS is a very new coin and requires the support of the surrounding community to provide feedback and create a solid community for it to grow.
Therefore, cryptocurrency enthusiasts have watched Dan Larimer’s career very closely and found out that he had two very successful products, Bitshares and Steemit. These were his creations before he went on to create EOS. So, people think that Dan brought his capability from his previous creations into EOS because his track record is good. A lot of investors think that Dan can change the cryptocurrency space. However, we may have to think again. In the world of cryptocurrency, it is important that decentralization is a key feature of any coins being released. This is the reason why privacy coins such as Monero and Zcash are gaining mainstream acceptance because it protects the identity of the users until the end.
The whole point of the cryptocurrency world is that nobody can gain access to information about another user. The main concern that the cryptocurrency community has about EOS is the fact that it utilizes a proof of stake mechanism. Using this method brings the number of nodes which are needed to do calculations to only 21 nodes. Unfortunately, this means that the cryptocurrency could be centralized. For cryptocurrency enthusiasts, this is bad news.
Ethereum, a strong contender within the cryptocurrency space, says that EOS is completely centralized. In a normal cryptocurrency system, the nodes required are infinite, and there is no fixed number. Therefore, it is clear to see that EOS may have some problems that will be upcoming in the future. However, all of this conversation about EOS makes it a much more interesting space for the cryptocurrency community, as controversy thrives in the space. Therefore, you need to make your own choice about whether you want to believe in a cryptocurrency that utilizes only and number of nodes compared to others.
- It has brilliant minds in its team
Perhaps one of the greatest supporters of growth in EOS is the fact that it is being spearheaded by a visionary team that has a proven track record of making ideas into execution. For instance, the CEO of EOS, Brendan Blumer, began selling virtual assets when he was 15 years old. In fact, he has been actively involved in the blockchain industry for the past four years. As we mentioned earlier, chief technical officer Dan Larimer is an experienced blockchain enthusiast who has founded several of his blockchain projects.
- Highly capitalized team
EOS is one of the blockchain projects that is possibly the richest one in the world in terms of funding records. Even before they started out their ICO, they already had a huge amount of fun prepared for an investment. All of the funds that they receive goes back toward progress in the community and the committed $1 billion worth of funds, which will be used to support people who develop projects on their ecosystem. On top of that, the fund is managed by a team of venture capitalists in different parts of the world to attract more people to join in the EOS project.
- Strong community
For a cryptocurrency to be successful, it needs to have a strong community built around it. This typically signals an in-depth commitment that is instrumental to the success or failure of the blockchain project. On top of that, EOS already have a strong global community, pushing for the global adoption of the platform. It is creating hackathons, which are hoped to incentivize the growth of the community. At the moment, EOS has about 131,000 active followers on Twitter.
- Can process millions of transactions
On top of having all of these features on their side, an important part of succeeding in the cryptocurrency world is to be able to prove the worth of the technology behind a coin. Therefore, EOS excels in this part because they can prove the superiority of their technical features, compared to their other rival cryptocurrencies. However, it currently lacks in the smart contracts department. Despite this, EOS remains optimistic that they will be able to process millions of transactions per second. The transaction fees, which are being removed, are also a huge factor, attracting developers to support their platform.