If you are reading this, you have probably been lured here by all the buzz around EOS, and you are wondering what is eos, what is eos coin, what is eos crypto, what is it used for, what is eos cryptocurrency and how to get it? Right? Do not pretend, you know we are right. So we might as well get to it.
EOS is one of the relatively new blockchain projects. It claims to have the most powerful platform to handle decentralized applications, that provides means to execute decentralized commercial applications (dApps).
EOS attempts to solve the problem of scalability, flexibility, and speed for blockchain-based systems that often become a bottleneck for steady development. EOS developers claim that their platform can support thousands of demanding dApps relying on asynchronous communication and parallel execution. But their goal to build a network capable of processing millions of transactions per second.
The EOS ecosystem consists of two parts - tokens and EOS.IO. EOS.IO manages the EOS blockchain network that is designed to enable vertical and horizontal scaling of applications. And EOS coin or token acts as the cryptocurrency of this network. To use network resources and to build dApps you need to hold EOS coins instead of spending them, and any token holder can rent his bandwidth to other users if he is not running any apps.
With a new approach to ICO, the EOS project already raised the equivalent of over $4 billion. The first round of ICO was running for five days from June 26, 2016, to July 1, 2017, distributing 200 million or 20% of the planned amount. The second one distributed over 700 million (70%) of tokens during a year-long round. The aim was to spread tokens as much as possible to strip a select few of undue advantage. 10% of the tokens are in an escrow account and will be distributed during a 10-year period at 10 million tokens a year.
Similar to Ethereum, EOS uses tokens to run applications on the network, but Ethereum EOS tries to bring a human element into the system. The EOS platform looks more like a crypto-democracy than an inviolable framework. EOS is designed so that 21 “block producers” can control the entire network, and they are themselves being elected by a form of a democratic voting system called “delegated proof of stake.” These “producers” are responsible for transactions and essentially governance of the network.
This system gives EOS the upper-hand in terms of speed because it is much easier to design a network with 21 trustworthy nodes. The problem is: can you trust those 21 nodes and the election system behind them?
The potential applications of EOS can become a huge game-changer for the blockchain community, but the truth is, at this point, it is hard to tell whether it will succeed.