New Born Blockchain EOS(EOSIO)
Overview
1.Introduction
2.Consensus algorithm of EOS
3.EOS Architecture
4.Revenue system of EOS
Introduction
Let’s start with the introduction EOS/EOSIO which is a newborn blockchain.if you don’t know about blockchain then refer our blog here. EOS is a blockchain protocol sometimes people also called it “ethereum killer”. Official site of eos is here.
The protocol imitates most of the attributes of a real computing by hardware (CPU(s) & GPU(s) for processing, RAM memory, hard-disk storage) with the computing resources distributed equally among EOS holders.
EOS is a smart contract platform and a decentralized operating system which enables industries and users to perform scalable transactions per second.
The birth date of EOS is 1st June 2018(i mean the mainnet launch of EOS). EOS blockchain system is developed by a private company Block.one and released it as open source. They have got crypto funding by ICO(know more about ICO here) on Ethereum platform and collected $4 billion in crowdfunding. It was one of the longest one year running ICO till the time of writing.
Consensus Algorithm of EOSIO
As you know there is many consensus algorithms are in markets which are a very important part of the blockchain. Consensus algorithm used in EOS is Delegated Proof Of Stake(DPOS).
Do you know about Delegated Proof of Stake(DPoS)?
As we know bitcoin uses Proof of Work(PoW) consensus and there is much waste of energy to mine transactions. To fix this issue Proof of Stake(PoS) came into the picture where energy utilization is very greatly handled because it consumes very less energy comparing to bitcoin or ethereum.
Before understanding, DPoS let’s get clear with Proof of Stake(PoS). PoS doesn’t require computers to perform much computation to mine transactions. It replaces miners with validators which validates the transactions. Validators lockup some of their coin as stake(deposit) and validate and propose new blocks. Validators are chosen based on their stake on the blockchain, for example, one person stakes 50 coins and another person stakes 100 coins so the second person is 2 times likely to be next block validator.
We can say that Delegated Proof of Stake(DPoS) is an upgraded version of PoS as it is more efficient PoS. In DPoS it uses reputation or voting system to achieve consensus. All community members chose a super representative(In EOS they called as Block Producers) by voting and only that super representative has the rights to create a new block. In EOS there are 21 active block producers chosen by voting and they rewarded by EOS for creating new blocks.
EOS Architecture
Here is the basic architecture of EOS.
Cleos is the command line interface to communicate between keosd and nodeos.
Keosd is the component which manages EOSIO wallets
Nodeos is the node component for blockchain.
Users use cleos to interact with EOS blockchain you will learn more about these components in my next blog.
Revenue system of EOS
As a human being, we get excited as much as Tom(shown in pic) when we came to know about someone’s income or revenue! So let’s have a look in the revenue system of EOS.
The yearly inflation rate of EOS is 5% and that 5% is divided into two groups 1% and 4% as shown in below image.in that 1% goes to block producers and 4% will be saved for worker proposal we will cover it later let’s focus on that 1%(block producer’s part).That 1% is also divided in 0.25% and 0.75%.
There are 21 active block producers in EOS and any number of standby producers. That 21 block producers chosen as per voting basis.back to point that 0.25% is rewarded to 21 active block producers proportional to block they discovered and that 0.75% divided into all active and standby producers based on their votes.
Now let’s understand these things as an example by taking data as of may 2018.
The coins created through annual inflation 5% or 133,000 new tokens per day.
5% will be divided into two part 1%(27k tokens) and 4%(107k tokens).
4%(107k) directly goes to worker proposal fund and 1% will be divided to 0.25%(6750 tokens) means 321 tokens per block between 21 active block producers and 0.75%(20,250 tokens) means 202 tokens on voting percentage.
So, if an active producer adds one block per day and having 2% of the vote then it will be rewarded with 321 tokens per block + (2 * 202 voting tokens) = 725 tokens total reward.
For a standby block producer having 1% vote will be rewarded with 0 tokens per block +(1*202 voting tokens ) = 202 tokens total reward.
