EOS [EOS] is one of the most hyped cryptocurrencies since the time it was first announced in May 2017 by founder Dan Larimer. A giant advertisement was put up over the Times Square in New York before the ICO was launched on June 26th last year. The EOS ICO was the longest running ICOs of all time which ran for 350 days and completed on June 1st this year. A total of $185 million in ETH was collected in the first 5 days and more than $4 billion was collected throughout the ICO, also making it one of the most successful ICOs of all time.
So, what is EOS? Is it safe for investment? Who is behind this cryptocurrency? All of this and lot more in this post.
What is EOS?
EOS is a blockchain platform whose whitepaper claims it to be the most powerful decentralized applications (dApps) infrastructure. The decentralized network can be used for developing, hosting and executing industrial scale dApps on the EOS platform.
While EOS is somewhat similar to Ethereum and a lot of people are already calling it the ‘Ethereum-killer’, it is actually combining all the best features of many different smart contract technologies, like Ethereum’s computing support, Bitcoin’s security, etc. to build a single, easy-to-use, and massively scalable blockchain platform to empower the blockchain economy of the future.
However, as their ICO ended recently, the development work has just started and there is no working service or product from the EOS [EOS] team yet apart from the mainnet launch.
Why can EOS be an excellent investment opportunity?
The EOS blockchain promises to solve a lot of common problems with other blockchain solutions like Bitcoin and Ethereum. Some of the features of EOS are as follows-
1. Scalability– Scalability has been a major problem for the blockchain community since the time Bitcoin got into the picture. While Bitcoin can only manage 3-4 transactions in a second, Ethereum can process about 20 in one second. Visa, on the other hand, can process 1,667 transactions.
Blockchain platforms are not able to compete with Visa or PayPal (193 transactions/second) for that matter is because of the way they are built. Every single node in the network needs to confirm the transactions to process them successfully.
However, EOS plans to use distributed proof-of-stake (DPOS) which can enable it to process millions of transactions every second.
2. Flexibility- The DAO attack in 2016 made the entire system of Ethereum come to a standstill. Everything just stopped in a matter of days and even the Ethereum community went through a split due to the hardfork which resulted in the creation of Ethereum and Ethereum Classic.
But as EOS wants to use DPOS, the chances of the same happening to EOS are close to none. If any of the dApps are found to be faulty, block producers are elected who can freeze that particular DAPP until the problem is resolved. This is one of the biggest advantages of DPOS systems- every node is not responsible for managing the blockchain.
3. Usability- The EOS blockchain also allows a host of useful permission levels with the help of features like interfaces that can describe themselves, database schemas with self-describing ability, declarative permission scheme, and web tools for developing interface.
4. Governance- Another thing that differentiates EOS from many other blockchain projects is its governance feature which is done by jurisdiction establishment and selecting a choice of law along with other rules that are mutually accepted. All the EOS transactions are required to have the constitution hash in the signature. This feature binds all the EOS users to a single constitution.
What is the role of EOS tokens in the process?
While the EOS blockchain sounds pretty impressive, where do the EOS tokens get into the picture? The tokens actually play an integral role in the EOS ecosystem.
The EOS project can be divided into two elements- EOS tokens and EOS.IO. EOS token is the cryptocurrency of the EOS network. EOS.IO is similar to the OS of a computer which is responsible for controlling and managing the whole network and enabling horizontal and vertical scaling of the dApps.
Developers are required to hold EOS tokens and not spend them to be able to use the resources of the EOS network and build, host and run dApps. The token holders who are not running apps are also allowed to rent or allocate their bandwidth to others.
Who is behind EOS?
It is very important for every successful blockchain project to have an innovative, experienced and knowledgeable team. The team behind EOS is made up of professional venture capitalists and blockchain developers who seem to have the ability and knowledge to develop and market a solid blockchain product. However, there are also a few members who caused a bit of controversy for the project.
EOS is a brainchild of Block.One, a company that offers blockchain solutions to businesses. Brendan Blumer, CEO of Block.One is a well-known name in the blockchain world since 2014. He used to sell MMORPG digital assets in the past and has created a number of several businesses, like okay.com.
Dan Larimar, the CTO of Block.One is the inventor of POS algorithm and also a co-founder of Steemit. His career in the crypto world has been very successful but he is also widely criticized for creating Bitshares. A lot of people in the crypto community agree that Bitshares is a highly deceptive platform. Moreover, Larimar not just created it but also abruptly left the project.
Brock Pierce and Ian Grigg are two popular partners of the EOS project. Brock Pierce is a co-founder of Blockchain Capital and Chairman of Bitcoin Foundation. While he has an excellent reputation as a venture capitalist, there have been a few controversies in the past. For instance, in 1999, he was accused of child sex abuse. Also, his selection as the Chairman of Bitcoin Foundation resulted in the resignation of many of the board members due to this accusation.
Ian Grigg, on the other hand, is a reputed financial cryptographer who has an experience of more than 20 years in developing blockchains and other similar technologies. Ricardian Contract and Triple Entry Accounting are some of his creations and co-creations.
Apart from these, the EOS project also has several notable corporate associates like Bitfinex, Blockchain Capital, Fenbushi Capital, Hyperchain Capital, Aurora Investment Advisors, and Yunbi.
Monthly price analysis
EOS mainnet, a news that significantly spiked its price in the past few weeks, is now live and the hype has somewhat subdued. While the price of EOS token reached $20 on 30th April, it is now trading around $8. As the mainnet is now live, token holders have the right to vote and elect block producer. However, as per the official release from EOS on Medium, at least 15% of all the tokens should be staked to elect the block producer candidate.
As the token holders need to expose their private keys for staking and voting, a lot of investors are not voting. This reluctance is weighing down all the excitement of the mainnet launch and dragging the price of EOS tokens with it. It is now not very difficult to see that the price would keep dragging due to the delays.
Another reason that has affected the price of EOS and almost all the other top cryptocurrencies is the recent CoinRail hack. Since the news of this hack, the price of EOS has fallen a lot.
Once the EOS block producer is elected and the market starts reviving, EOS is expected to rise again in the short-term.
With the mainnet already launched, EOS is well on its way to accomplishing the things mentioned in its whitepaper. It aims to resolve a host of common blockchain problems and can be big in future if the team is actually able to deliver everything that they promised. The team behind the project is an experienced one and is believed to have what it takes to execute a major blockchain project.
The EOS token has already delivered 10x profits since its ICO and is expected to grow significantly as the development continues. If you are looking for a solid blockchain project to invest, EOS can definitely be an excellent choice.
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