Developed by the private company Block.One, EOS, an operating system for decentralized applications (dApps) and decentralized autonomous organizations (DAOs), has already become one of key buzzwords of the year 2018. But what’s so special and groundbreaking about EOS that makes it a fertile ground for crypto investors and developers to get involved? Sit back, put your finger on a scroll wheel and read why EOS is now well placed to bring the revolution to the entire crypto market, even with existing pitfalls.
What is EOS?
EOS is a unique blockchain-based platform that combines the best features of different ecosystems, including Ethereum-like computing support and Bitcoin-like security measures. Plus, EOS is the first governed blockchain, as the governance structure is established by the Constitution. This ‘filling’ represents fundamental advancements in fintech sector and fully reflects the developers’ goals – to create a balanced, user-friendly and scalable dApp platform.
It comes with no surprise that the crypto community has supported the project. The EOS project launched its Initial Coin Offering (ICO) on June 26 2017, which has lasted for almost a year and has raised about $700 million.
Being an application platform, EOS provides users with a hosting environment that allows for vertical and horizontal scaling. In addition, system offers a variety of services such as cloud storage, authentication, accounts, hosting, to name a few.
The EOS platform is often compared with its direct competitor, NEO platform, which is also considered to be an ‘Ethereum heir’. But in contrast to NEO, Ethereum and other blockchains, EOS uses the ‘block-producer model’ to determine how fees will be paid depending on services offered and charged for by dApp developers like those using the platform Boosto to create dApps. It means that EOS blockchain architecture is able to scale millions of transactions per second, eliminating user fees and allowing for quick and easy deployment of decentralized applications.
Is EOS a true ledger?
A team behind EOS, with Dan Larimer as a founder, believes that scalability, flexibility and usability are those three pillars EOS platform is based on. However, the recent news relating to the freeze of some EOS accounts tarnished the EOS’ credibility and raised questions about its integrity and decentralization. To cut a long story short, EOS froze around 30 accounts as a counter to potential theft. But it was block producers who enacted the EOS911 safety protocol, which, according to EOS’ Constitution, could only be enacted by EOS Core Arbitration Forum (ECAF). This created an allusion to a possible centralization which gave a rise to an inevitable backlash and negatively affected the growth performance. Moreover, less than in a week after those accounts were frozen, the number of accounts censored raised to 27. That only piqued the community’s interest and inkling about unconventional and centralized approach to governance.
Many argue that EOS’ Constitution is flawed, and the very essence of its existence implies the restriction of users’ freedoms. However, EOS team is only pioneering the on-chain blockchain-enabled governance, so the criticism and possible challenges are something inevitable for developers at this stage.
Now it can safely be said that this high-profile mishap is already history. Obviously, the system will mature on the basis of its experience. EOS is now in uncharted territory trying to protect users’ liberty and property in the safest and unprecedented manner. In fact, EOS is the only ‘big boy’, which implement new approaches in smart contract technology and on-chain governance, despite of possible hoopla with the media and community. That definitely makes EOS one of the most attractive objects of interest in the crypto world.
Drawing a line
Awareness and recognition is growing for the cryptocurrency market. Crypto will soon undoubtedly become a fully-fledged new asset class, taking an important place in the global financial system. Besides, crypto sector is a great space for forward-looking projects to come up with life-changing approaches and applications.
Should EOS be inscribed on the list of future groundbreakers? Most likely, it’s already inscribed. Being a top-five crypto, EOS is now expected to recover its position after the aforementioned hype about ‘fake decentralization’. And, who knows, perhaps in future the ever-improving EOS will be the only cryptocurrency to keep up with a pace of financial and digital development.