What if Ethereum were free of fees and could process thousands of transactions per second? It’s moving there with its Eth 2.0 upgrade, but there is one project that fits these criteria right now — EOS, a platform for building highly scalable decentralized applications. Let’s see how this competitor to Ethereum works.
How EOS aimed at solving the issues of Ethereum
EOS was introduced in 2017 — two years after Ethereum. Even back then, the drawbacks of Vitalik Buterin’s brainchild were obvious: only 15 transactions per second and gas fees that a user had to pay for any step on an ETH-based dApp posed serious restrictions on the platform’s scalability.
The team behind EOS addressed this problem. They introduced a blockchain and infrastructure for building dApps with no fees for end-users and thousands, even millions of transactions per second. The idea resonated with the crypto enthusiasts, and EOS managed to collect the mindblowing $4 billion in a year-long crowdfunding ICO.
How does EOS work?
So, the goal of EOS was to build a platform where industrial-scale and fee-free dApps could be developed. How did they achieve that?
In EOS, end-users don’t pay anything. But developers and dApps’ owners do. To reserve the computing power of the network, they buy EOS coins and hold them. The more coins they have, the more space on the EOSIO blockchain they have, and the more users they can attract. This looks fair enough, however, this approach has been criticized for creating the risks of centralization.
To attract more developers, EOS offers convenient tools for building dApps. It provides cloud storage, server hosting, and a web toolkit with detailed instructions.
Why buy EOS?
Users who are interested in EOS growth can buy EOS coins, too. If you own some, you can participate in the platform’s governance. This gives you the right to:
- Vote for the block validators. 21 validators confirm EOS blocks and get rewarded, and they are being constantly renewed. The more coins you have, the more power you have to change the validators who you don’t like.
- Change the EOS constitution (yes, there is one). This is a set of rules upon which the project functions. It can be altered if 15/21 validators reach an agreement.
The consensus algorithm that lies behind this mechanism is called the Delegated Proof of Stake. In EOS, DPoS removes the need for cumbersome and energy-inefficient Proof Work like in Ethereum 1.0. Special algorithms allow it to create 2 blocks a second compared to Eth’s 1 block in 10 seconds.
What is EOS staking?
Staking EOS can raise your profits from owning the coin. Staking means locking some EOS coins in your wallet, and that brings you about a 3.2% annual reward. When you lock your coins, you create a stake — and it’s not only the way to raise profits but also gives you the voting rights described above. Only stakes EOS gives you the right to participate in the platform’s governance.
EOS price at the time of writing is $9.35. The number of coins in circulation is 950 billion, and the project’s market cap is close to $9 billion. Currently, EOS takes the 23rd position in the CoinMarketCap list. Like many other coins, it demonstrated substantial growth over the last few months. See this crypto chart EOS.
EOS is waiting for the new all-time high — the previous was hit in April 2018 at the price of $22.89. The overall ROI of EOS is close to 800%.
Seize the moment and buy EOS on ChangeNOW — this will only take you a few minutes. No registration is required.
What dApps are based on EOS?
On EOS, there are dApps designed for gaming, social mechanics, and more, but a significant part of them are decentralized finance applications. Here is the top EOS dApps’ list. If we sort it by volume, the 30-day table will show that most of the apps are in the DeFi segment:
These are decentralized exchanges, lending services, and more.
EOS in a nutshell
EOS was introduced in 2017 as a scalable alternative to Ethereum. It is a platform for building decentralized applications that are free to use and handle thousands of transactions per second. DApps are easy to develop and require EOS coins to reserve space on the blockchain. Users can use EOS coins to govern the project, choose block validators, change the platform’s rules, and stake them to get some passive income.
ChangeNOW doesn’t give financial advice or EOS crypto forecast and encourages you to do your own research before making investment decisions. We hope this EOS crypto info guide was helpful to you, and if you feel ready to buy EOS crypto coin, come over here and see how much you’d like to get!