EOS is a project by a blockchain development company called Block.one, headed by CTO Dan Larimer, who has worked on projects like Bitshares and Steem. The purpose of EOS is to fund EOS.io, a software tool that anyone can use to create decentralized applications and smart contracts on a simple and friendly web interface. Because blockchain is still relatively new, EOS software will make it as easy as Windows does for computers. It provides a simple interface and way to take advantage of the technology.
While I hate to mention Crypto Kitties, Ethereum has been experiencing issues due to the increased traffic in their decentralized applications. With EOS.io, a large amount of information can be transmitted through parallel chains and is designed to look like a regular website interface. With many coins, society will have to evolve before they can be adopted. XRP is a prime example.
We see XCurrent (which does not use XRP) on the rise, but XRapid (which uses XRP) is stagnant. It will take time to transition the world’s largest organizations to digital currency methods. The application currently has a GitHub community and development team, with the target market being such users rather than established organizations.
Development Team / Follow
Dan Larimer: The guy the crypto community loves. He is the CTO of Block.one, with a wealth of experience and skills from various blockchain projects, all of which promote decentralized development. For example, Steem is a website that creates content that is stored on computers via a blockchain instead of on a shared server.
He believes that the decentralized nature of blockchains does not give any organization any profit or power, because humans are inherently susceptible to deception, greed, and bias when power is given to individuals. Steem will never have to deal with content censorship by authors, or a parent company that wants to profit from the success of the network. The EOS.IO project has turned that structure into a complete software product.
Notable Technology
The blockchain they are developing will not be related to their tokens on Ethereum. Dan Larimer himself said that he will no longer be involved with Ethereum as soon as June, once the software system is completed.
Freeze mechanism
This is a direct solution to the DAO (Decentralized Autonomous Organization) problem with Ethereum. It allows the community to “freeze” and fix issues without disrupting any other running applications. There will be no need for updates that disrupt the entire community like we saw with Ethereum/Ethereum Classic. This is very important to me after the ZCL issues, along with the upcoming Monero update. The community will not tolerate interruptions when they are using the blockchain. They will see red on the screen, and eventually sell. Freezing is a good and stable solution that satisfies both the development team and the users.
Parallel Chains
Running different chains in parallel, EOS beta currently supports 10,000 to 100,000 transactions per second, with over a million in the pipeline as more parallel chains are run. In other words, it can support large-scale smart contracts and decentralized applications. These applications can be web-based and not dependent on transaction fees. This allows developers to work on EOS without having to pay for contributions (Ethereum’s GAS is an example of a payment for contributions). Incentives are higher on EOS than on Ethereum – once the software is launched, of course.
Interface
This application allows developers to create an environment that looks like a normal website, so users are barely aware they are using the EOS.io blockchain software. The reason I think it is different from Ethereum is because of the software package. Like Windows Office, this toolkit is designed to be widely used and customized. That’s better than what Ethereum offers you, a loose transaction infrastructure and on top of that, you pay GAS to run your business. In fact, there are two venture capital funds below that are willing to pay you to open on EOS!
Partnerships
This is a cryptocurrency company. One of the most notable investments came recently, when Novogratz invested $325 million in a partnership with Block.one to provide a seed round for developers to work on projects on the EOS.io platform. This is not an investment that we often see, as the project funds will operate as investment capital for an environment to support new businesses to develop exclusively on EOS.
Novogratz has figured out how to not miss out on any new developments in blockchain, and is willing to partner with a software that he believes in. That’s a huge amount of money for a risky project. It seems like he clearly sees the value of a scalable and user-friendly application, so he decided to bet on the future. Note that he did not do the same with Ethereum Tomorrow Blockchain.
This is the first venture capital fund to lay the foundation for EOS to exclusively invest in EOS.io development projects. This is a $50 million investment into the network, again, without a proven product. After the move by these two partners, there are some big players ready to pour their capital into the EOS network.
Ecosystem
This is still a young project, with beta versions being released before the official launch in June. The communities on Github and Telegram are considered the largest for the digital currency. The optimism stems from how the coin is used. You control as much of the network bandwidth as the percentage of EOS tokens you own. This is enough to excite me as a coin holder. As the demand for development on EOS increases, the value of the coin will also increase, meaning there will always be buyers and sellers in this ecosystem.
Conclusion
I like EOS, I really like it. I didn’t think I would like it as much as I thought I would, but it has real reasons to believe. EOS ensures that tokens have value, as well as your vote and development on the network is determined by the amount of assets you own. You don’t have to spend a dime to be a member of the community and contribute to it. There are also large investment firms that have staked their reputations on the ability of this software to provide its developers.
The biggest strength of this coin is that it is a developer coin. It wants to separate the development power from other networks through its own forms of provision. Not forcing developers to pay to run applications is a good move to keep the upper hand for itself. While I don’t develop, I’m not interested in working on something that requires me to pay for it. This industry is so new that the development community is always looking for something that rewards their efforts. I’m sure this offering is very competitive given that it’s fully scalable, has no transaction fees, and doesn’t cost anything to work on. I’m really looking forward to June to see the results.
