EOS – A Beginner’s Guide, Review & More

Written by Adolph Obasogie - Reviewed by Coin Review Team

Published: May 7, 2018 | Last Updated: Jan 16, 2019

2023-12-03T05:57:20+00:00

What is EOS?

EOS aims to be an entirely decentralized operating system on which industrial scale decentralized applications can be hosted. There targeted use-cases are smart contracts, decentralized storage solutions and an environment for DApps. It claims they can efficiently compute thousands of transactions through their dPoS-consensus mechanism.

Table of Contents:

They also aim to implement parallel processing, where program instructions are divided among multiple processors. Due to its unique architecture it claims that it can scale vertically and horizontally, and they aim for transactions to be feeless when their project is finished.

Their native asset is called EOS. It is a utility, which can be used to buy storage and bandwidth inside the network. It also grants voting rights, in proportion to the stake.

The EOS crowdsale started at 26. June 2017 and will end at 3. July 2018. Until the end of the ICO, their native asset EOS will be given out as an interim token (ERC20) on the Ethereum blockchain.

Who founded EOS?

It was founded by the private company block.one in 2017. Dan Larimer, the inventor of delegated proof-of-stake (dPoS) and creator of STEEM and Bitshares, is the CTO of block.one. Block.one is planning on publishing the software open source on 1. June 2018.

To find out insider news, before-the-public, I advise you to bookmark www.blockchainwhispers.com

Can it be mined?

No, the project uses dPoS (distributed Proof-of-Stake) as a consensus mechanism. Instead of mining, block producers will be generating blocks and get rewarded in EOS tokens when the network is live.

Block producers will be voted upon with the dPoS-system.

What differs it from other Cryptocurrencies?

They used delegated-proof-of-stake as consensus mechanism. Also, it aims to be highly scalable through the use of parallel execution and asynchronous communication methodology.

How much is it worth today?

What is the total and the circulating supply?

The total supply is 1,000,000,000 and the circulating supply at the time of writing is 806,764,417. There is an inflation rate of up to 5% annually, so the maximum supply is infinite.

Where can you buy EOS?

The ICO is currently live; you can purchase it here:
https://eos.io/#token-sale You can buy it as well on several cryptocurrency exchanges, most notably Binance, OKEx, Huobi, Bithump and Bitfinex.S

Can it be sold for cash?

You can sell it for cash on several cryptocurrency exchanges that have fiat-pairings, most notably Bitfinex and Kraken.

Future Development

It exists only as an ERC20 token by the time of writing. Once the ICO is finished, these interim tokens will be swapped to tokens on the EOS blockchain. Then the infrastructure will be subsequently built and optimized. There will be 21 nodes to process transactions at the start. And the holders will get airdropped tokens from selected ICOs that are built on top of EOS.

Verdict and Rating

3/10
There are several negative points about EOS. One is the fact that all proceeds from EOS ICO are revenue for a private company which is registered in the Cayman Islands. And the company stated this on her website:

“The Tokens do not have any rights, uses, purpose, attributes, functionalities or features, express or implied, including, without limitation, any uses, purpose, attributes, functionalities or features on the EOS Platform.”

I assume they did this to be free from any liability. Additionally, the supply is very high.

At this point, there is no fully functioning platform, and many people have spoken out critically about the ICO lasting one year.

What worries me the most is the so-called “nothing-at-stake problem.” The punishment for malicious behavior from a block producer is just a downvote for being a block producer and a loss of reputation. I think this is not enough to prevent malicious behavior.

And the fact that the self-proclaimed “Ethereum Killer” is currently only available as an ERC20-token speaks for itself.

3 / 10.0

Page Score:

References

Disclaimer

The writer’s views are expressed as a personal opinion and are for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.