What is EOS?
Most of us are familiar with popular crypto tokens such as Bitcoin and Ethereum. These crypto tokens are commonly used as a store of value and for building various applications, But there are several crypto tokens with great applications. One such platform is EOSIO, which has a larger purpose. EOSIO is a decentralized blockchain platform launched in 2018. EOSIO is used for hosting, maintaining, and developing dApps. EOS is the platform’s native token.
How does EOS work?
The EOSIO platform enables developers to create dApps. This platform mimics the characteristics of a physical CPU. Traffic is regulated on the network by the software using these concepts.
CPU characteristics like computing power, memory, and bandwidth are used to create dApps. Developers have to buy these resources using EOS as dApps require these resources to function. As a result, developers must purchase more network resources to enable transactions, and users can enjoy using the app without any hassle or payment for transactions.
EOS does not use proof-of-work for block verification like Bitcoin, as the proof-of-work system can be inefficient and slow. This verification system can prevent dApps from working smoothly. Instead, EOS uses a delegated proof-of-stake (DPoS) system to verify transactions. Every EOS owner has voting rights in this system. These voting rights are used to elect representatives to add and validate new blocks on the blockchain.
The EOS community also decides the rewards for validation. The elected representatives, or block producers, publish the number of tokens they want to receive for adding new blocks on the blockchain. The median value quoted by all block producers is usually the reward for validation. The total reward hike cannot exceed 5% in one year to prevent misuse of this system.
EOS Advantages and Disadvantages
Benefits of EOS
All developers want their dApps to be up and running at all times. EOSIO enables developers to expand and develop applications for as many users as needed. The network resources are available to developers depending on their staked tokens. So they can always stake more to increase the bandwidth of the network.
The EOSIO platform offers more transactions per second compared to other blockchain platforms.
Zero transaction fees
Your account balance is untouched for transactions in EOS, there are no gas or transaction fees on the EOSIO platform. Zero transaction fees enable dApps to work seamlessly.
EOS staking is used to send transactions on the EOS network. Developers can access a part of the network’s resources using these staked tokens. More resources enable developers to send more transactions.
EOS accounts and dApps can be frozen by block producers. Any issue in a dApp deployed on the blockchain can affect the whole network. Any flaw can be exploited by hackers to steal funds from the blockchain network. EOS freezes the faulty apps until the issue is resolved to prevent criminal activity.
Wallets and accounts in EOS
In EOS, wallets and accounts can be different. Public and private keys are connected to an account on the EOS network. Depending on the permissions granted, these accounts can be handled by multiple users. Owner and active are the two levels of permission on the network.
Active permissions are used for day-to-day operations on the blockchain network. These permissions grant users the right to vote on network decisions and allow users to transfer funds. Meanwhile, the account holder has the owner’s permission. Users with owner permissions can perform all active permission tasks but have additional purposes, such as changing active or owner permissions.
The public and private keys used to access your account are stored in wallets. Except for the keys stored in wallets, there is no other link between wallets and accounts.
Is EOS a good investment?
Over the past few years, EOS has been gaining a lot of popularity. EOS offers incredible development tools that enable developers to create dApps that are scalable and fast. EOS also allows users to create unique apps to solve issues related to social impact and logistics.
Some critics are skeptical about the platform due to its governance process. There are new policies to be deployed to solve the areas of concern. However, collusion and centralization are still issues in this system even today.
EOS has the potential to be a popular investment opportunity once these issues have been resolved. Investing in this token now comes with some concerns. Users must decide for themselves how much they value decentralization on this platform.
Currently, EOS is trading at $1.04 per token, and the total market cap of EOS is $1.47 billion at the time of writing. In April 2018, EOS hit its all-time high of $22.89 per token.
You can now buy EOS tokens on ZebPay. Visit ZebPay blogs and stay informed about everything happening in the Crypto world.