EOS: The Most Successful Pioneer of Blockchain 3.0

Disclaimer: the cryptocurrency industry is extremely volatile and unpredictable. Superorder isn’t responsible for any consequences of your investments. Always do your own research before making a deal.

This guide opens the series dedicated to innovative blockchain projects that can be interesting for users and/or investors. Each week, we will analyze one famous, partially known or completely fresh platform that can be classified as blockchain 3.0 or higher (yeah, no more BTC, ETH, and LTC!). Traditional projects are old but gold. Still, we want to cover more engaging stuff.

Long story short, blockchain 3.0 is considered as the upgrade of previous technologies, i.e. Bitcoin or 1.0 and Ethereum or 2.0. These freshmen focus on higher scalability and compatibility. Often, they utilize other network architectures such as a directed acyclic graph (DAG) that allows connecting non-subsequent blocks.

EOS is probably one of the most discussed and controversial projects from the 3.0 generation. It’s dubbed as an “Ethereum killer”. Let’s find out what is the deal with this coin!

EOS Basics

This crypto project acts like an operating system based on blockchain. And here’s the first notable insight: EOS is similar to Ethereum and other traditional projects because it also utilizes a good old architecture of subsequently-connected blocks, not a DAG. Overall, EOS looks like a more ambitious and tech-savvy Ethereum clone.

The system’s strategy also features decentralized applications (DApps) and smart contracts but tailored to business needs. Thus, companies and individuals can create blockchain-based applications via simple user-friendly interfaces. EOS also opts for high scalability accessible thanks to the delegated Proof-of-Stake (DPoS) protocol.

EOS History and Key Events

Authors (Daniel Larimer and Brendan Blumer) published the white paper in 2017 and opened public access to the testing environment in November of that year. The mainnet Dawn along with the major open-source platform called EOSIO were released in June, 2018 after the end of the project’s ICO during which EOS got more than $4 billion.

Among the latest news related to the EOS system, there is information about a new end user agreement (EUA) that will replace the existing constitution. But the most expected insights will be revealed in early June, according to Dan Larimer. The founder promises to reveal new game-changing details, including a fresh EOS roadmap.

You can read the project’s white paper with all the main development directions or check the official FAQ.

EOS Major Features

• Delegated Proof-of-Stake (DPoS). Only 21 block producers (BPs) form the main EOS decisive power. Other users can act as validators and vote for various changes, including choosing new BPs. This approach increases the network’s performance and scalability greatly.
• Thousands of transactions per second (TPS). The platform aims at a record-breaking number of TPS among all blockchain systems. The current maximum of almost 4,000 TPS was reached at 15.08.2018, before the mainnet launch. Current day averages are between 50 and 100 TPS. Bitcoin has 5 TPS and Ethereum features 15–20 TPS.
• Zero transaction fees. Because of the already mentioned DPoS and multi-threaded nature that allows the platform to run on various cores, EOS is able to get rid of fees. Users can get other benefits for keeping tokens so they aren’t rewarded with new coins. Still, indirect fees are implied via the inflation system of EOS tokens.
• Utility tokens and blockchain democracy. EOS isn’t a crypto trading platform, it’s more development ecosystem and operating system. Thus, users can get various app-related features for EOS tokens, e.g. storage and bandwidth. Plus, participants can vote for major decisions. The more coins you hold the more power you have.

EOS Advantages

• A real working blockchain 3.0 product. EOS is a rare gem because it works! Many skeptics blamed the project because it existed on paper only, without software and apps. Now, everybody can try it.
• Relatively high TPS rate. Despite the platform hasn’t reached the planned 1 million TPS yet, it outpaces the main rivals by this parameter. A stable rate of 50 TPS is a good sign, particularly, because there are no fees.
• Convenient ecosystem for developers. EOS is wonderful for traditional developers that want to try DApps. They can use built-in toolkits and features like WASM virtual machine with different languages.
• Protection from bugs. 21 BPs are always ready to freeze any buggy DApp that threatens the stability of the entire platform. Devs then will be able to fix issues and start the app again.
• Large reserves. The community of authors raised insane sums during the ICO campaign. Now, they can invest this money into the development of EOS. We hope that they will not leave the project.

EOS Drawbacks

• Centralization issues. 21 users can decide on the fate of EOS. The DPoS relates to various problems, including political games and vote buying. BPs have extreme power as they even can reverse transactions.
• Low participation rate. EOS rarely reaches the needed 15% of active voters regardless of the decision’s importance. Thus, the idea of decentralized democracy turns to be ineffective in this case.
• Suspicious past of Dan Larimer. The founder is known for launching projects, getting investors’ money, and leaving his teams to create a new one. No guarantees, as you understand…
• Powerful and diverse competitors. Zilliqa, NEO, IOST, and, surely, Ethereum also focus on the role of the main development blockchain platform. Among all EOS rivals, Ethereum is still the king.

EOS Price, Trading & Investing Tips

As for late May, 2019, EOS is at the 5th place in the global cryptocurrency rating by CoinMarketCap. Its price is around $6.3 and is growing while the overall capitalization is $5.7+ billion.

According to our recent price analysis, now is a good moment to open long positions for EOS/USD trading. Bulls have a strong advantage so they will try to enhance the current uptrend and may reach $10 or even more.

If you don’t consider day trading crypto but want to invest for the long run, EOS also can be a viable choice for your portfolio but you want to combine it with other blockchain 3.0 coins.

Don’t forget to subscribe to our publications, Facebook, and Twitter pages. See you next week in the guide about Cardano!

EOS/USD