EOS is a multi-purpose platform for decentralized applications. The crypto community is carefully following the process of EOS development, analyzing the dynamics of its value, and watching with interest its rapid growth. Let’s take a closer look at the EOS blockchain network.
EOS Project Overview
One of the brightest representatives of the cryptocurrency field is EOS. In 2017, the EOS team developed a platform for decentralized applications creation and operation. It has the highest transaction processing capacity, a simple and convenient account security model, and a host of effective technical solutions.
So, what does EOS do? The EOS blockchain will allow users to create decentralized applications quickly and easily. Users will have the ability to create databases on the network and open accounts with low fees, great transaction velocity, minimal risk, and maximum profit.
Distinctive EOS features:
- Free operations. One of the declared principles of EOS is that all transactions should remain free.
- EOS can operate a huge number of transactions per second (1,200) due to asynchronous communication mechanism utilization.
- An operating system for blockchain projects. The EOS team promised to develop a decentralized technology based on smart contracts. This will help teams leading new projects to run and configure their own applications much more quickly.
As we can see, the essence of EOS blockchain resembles Ethereum: it is a platform for application development, information storage, and cryptocurrency account creation. With effective realization of the project’s plans, Ethereum will have a strong competitor that has no problems with scaling; yet it is quite difficult to compare EOS with Ethereum, as they have seriously different structures.
The main goal of EOS is to increase productivity in the development of technology-intensive businesses through the scalability of a distributed database. The developers note that if there are a million of users on the network, their technology will support the implementation of thousands of transactions per second.
The EOS team boasts great support in the crypto community: on its Telegram channel, there are now more than 64,000 subscribers. The team plays an important role in the project’s positive support. It was formed by Block.one company employees, successful and talented specialists with vast experience in similar projects. Because the EOS team is familiar to blockchain enthusiasts and is made up of specialists in the field, it has a positive impact on the reputation of the innovative platform. Block.one has already raised $600 million in joint ventures from investors such as Finlab AG, Tomorrow Ventures ex-Chairman and Google Board of Directors member Eric Schmidt, and the Galaxy Digital fund, managed by billionaire Michael Novogratz.
It is worthwhile to check out the personalities of the most famous team members in greater detail:
- Executive Director: Brandon Blumer is the founder of the real estate startups ii5 and Okay.com. In addition, he has developed a digital-currency exchange platform in the gaming industry and major real-estate projects in India. Since 2014, he has been a notable player in the blockchain field.
- EOS Technical Director: Dan Larimer is a co-founder of several well-known platforms. In addition, his name is mentioned in connection with several successful second-generation digital currency projects (see below). In a relatively short period of time, Dan has proven that he has ideas and the means to implement world-class blockchain projects. As a technical specialist, Dan suggested using the concepts “decentralized autonomous corporations” and “proof of bet.”
- Partner and venture investor: Brock Pierce was one of the first big entrepreneurs to recognize the potential of the cryptocurrency market. He is one of the chairmen of the Bitcoin Foundation and has managed to collect over $200 million for various blockchain projects.
- Cryptographer: Jan Grigg has devoted his life to developing protective technologies for financial systems. He is a recognized specialist with a worldwide reputation and holds many patents in his field.
The co-founder of the platform, Dan Larimer, developed BitShares (decentralized exchange), Steemit (social network), BitUSD (cryptocurrency), and Graphene (blockchain engine), on the basis of which all of the above-mentioned projects were built. The entire market capitalization of Larimer’s developments exceeds $800 million, not taking into account the EOS project.
Daniel Larimer is confident that the whole world will soon move to blockchain, for which an appropriate platform must be created. EOS, like Ethereum, is a platform for hosting smart contracts, but without its Ethereum’s forking capabilities. If what happened to Ethereum in June 2016 happens to EOS, when 3.6 million Ethers were withdrawn from the DAO Ethereum accounts or $43.9 million at the rate of that time, the accounts will simply be frozen, and EOS will deal with the situation separately.
The EOS team employs specialists who cooperate with consultants from different parts of the globe. This allows them to effectively concentrate on business challenges and develop effective solutions based upon blockchain implementation within the system as a whole.
EOS Blockchain Network
EOS was created for:
- decentralized application creation
- large database formation
- the planning and management of various processes (for example, solving logistics problems)
- internet application communication and authentication.
- EOS’s goal is to allow data exchange between two nodes without having to wait 0.5 seconds between each action. To make this possible, EOS.IO software splits each block into cycles. Each cycle is fragmented. These fragments (shards) contain a record of transactions.
This can be visualized as follows:
EOS.IO actions basically function in a communication model. A user appeals to actions by transmitting a piece of information to nodeos. This is implemented by utilizing the cleos command.
Thus, EOS.IO has a wide range of key programs. The interaction between them is portrayed below:
An action is one operation, while a transaction is a unit of one or more actions. Actions can be transmitted separately or can be united if the user wants to operate them together.
A transaction with one action:
A transaction with numerous actions, which must all be successful or the transaction will break down:
EOS places the code into the blockchain to make the contracts available to all users. Thus, it can be seen by everyone. Developers get the opportunity to assemble them on various devices while avoiding consensus disruption. Users can roll back the changes and correct errors with the agreement of a majority of the nodes.
EOS software requires each transaction to have a hash (special number) of the last node header. A hash allows:
- elimination of the replay of transactions on forks that do not include a block with a specific translation
- notification to the platform that this user is on a specific plug, along with his/her stack.
With this approach, all EOS blockchain users immediately confirm the new node directly. This makes it difficult to forge chains since the transaction cannot be transferred from the legal blockchain. Developers use this technology to protect the data of their ecosystem.
As for EOS blockchain speed, the number of transactions in the EOS network has recently increased to 1,200 per second. This became possible due to increased bandwidth: the TPS indicator in EOS grew to 1,275. The project has also decreased the transaction period to 0.5 seconds and completely removed the commission fee, so users of social networks won’t pay for each posted image, rating, or comment, and players in video games won’t pay for each action.
With blockchain technology, developers intend to provide the creators of new distributed applications with all key options. Users will be able to focus on their main goal: making the applications as useful and effective as possible. As a result, the speed of creating new programs will increase.
Delegated Proof-of-Stake Algorithm
Now, let’s explore what is EOS blockchain. EOS utilizes a Delegated Proof-of-Stake (DPoS) algorithm to achieve consensus in a decentralized environment. The essence of DPoS is in the collection of votes: users of the network “vote” for other users (nodes), and choose the ones that will be authorized to confirm the blocks. This consensus confirmation algorithm is an improved PoS idea. Basically, in the DPoS model, each participant in the system chooses a random “witness” that confirms payment. The computing energy of these nodes (block producers) is the essence of the EOS blockchain: together, block producers create blocks for a predictable period of time. The list is managed by votes, utilizing different scenarios to eliminate “bad” block producers and incorporate new ones.
EOS has adopted DPoS as its basis. This reduces the cost of energy associated with the extraction of currency, decreases time spent on the formation of the blocks, and minimizes the risk of concentrating rights in the same hands. It allows maximum productivity in the creation of chains of blocks; millions of users can participate in this process at the same time.
With the DPoS algorithm, owners of network tokens adapted for EOS.IO, and any other participants in the system can take part in the generation of blocks. Users have the right to initiate as many conversations as will be proportionate according to the votes received from other block producers. If a selected participant skips a block (does not generate it within 24 hours), they lose the ability to create a node. In order to regain the right to make a block, the user must send a special notice of intent to continue working in the unit. This approach ensures more stable operation of the network and reduces the risk of a drop in the number of generated nodes.
A new block is formed every 3 seconds. According to the DPoS algorithm, per one period of time, only one producer generates a block. Each round has 21 rounds, and the producer of each round is unique. The system automatically calculates the top 20 candidates in each round, after which they are shuffled in order to have equal opportunities. The system guarantees the fairness of the result and the absence of plugs. All participants in the blockchain cooperate with each other and do not compete, as in similar projects. In controversial situations, a consensus is automatically reached. A hard fork is no longer required for product management, and controversial issues are quickly resolved by legal methods.
When the algorithm is working normally, there should not be any forks of the cryptocurrency in the chain, as the creators of the nodes work together and do not compete with each other. If branching does happen, the system switches to a longer circuit. In a situation where a user starts to form a block simultaneously on two chains, it is excluded from the process of generating new nodes.
EOS Smart Contract
An EOS.IO Smart Contract is filed on the blockchain and performed on EOSIO nodes, creating a semantical “contract” whose record of operations is recorded on the blockchain. EOS private blockchain can be utilized to experiment with smart contracts. Here is how it is done within the EOS network:
Starting a private blockchain:
Creating a wallet:
It is better to lock your wallet when you’re not using it:
Loading a BIOS contract:
Creating two user accounts:
Before we start to consider the creation of the EOS tokens, it is necessary to say that the project utilizes Proof-of-Completeness. In essence, the EOS network simplifies the process of valid transaction-number identification. This is done by assigning sequence numbers to each message. These sequence numbers can be used to prove the data processing in a particular sequence.
EOS digital currency functions on a blockchain-built application. Asynchronous smart contracts, laid in the foundation of the project, can work in parallel, providing the ability to conduct hundreds of thousands of operations per second, and thereby decreasing user commissions and easing the creation of the decentralized network.
To build a new EOS token contract, it is necessary to create an account to deploy it to:
To create a new EOS token, it is necessary to implement the create(…) action with the right argument. This order will utilize the figure of the max delivery to uniquely distinguish this token from other tokens. The issuer has the right to issue and carry out other actions: to freeze, recall, and whitelist the owners.
Calling this method, utilizing positional arguments:
Having created the new EOS token, the issuer can transfer the cryptocurrency to an account (using the positional calling convention):
How to Buy EOS Cryptocurrency?
Due to the popularity of the EOS tokens, you can buy it on many exchanges. They are several dozen of them, but almost 50% of the trade turnover belongs to the South Korean exchange Bithumb, where EOS tokens can be bought for the local national currency (KRW) exclusively. The remaining 50% of the turnover is distributed between the Bitfinex exchanges (bitfinex.com), Binance (binance.com), where you can buy the cryptocurrency for the U.S. dollar and its electronic analog USDT, as well as Bitcoin and Ether.
EOS Advantages and Development Prospects
EOS employs a qualitatively new organizational approach of functionality is provided by one operating system, around which the entire platform is built. This opens wide opportunities for large-scale business projects. For a successful start of a small business, it does not require large financial investments, and this is an undoubted plus. Owners of tokens can make bets and take an active part in the development of decentralized applications. Such manipulations do not require large investments. In addition, there is no commission for transactions on the network. Good throughput is guaranteed by the developers, and storage capacity is distributed proportionally.
EOS network advantages include:
- High scalability: The EOS blockchain operating system allows the support of an incredibly large number of business applications with parallel tasks. It also facilitates asynchronous communication and separation of authenticated transactions. Thus, it offers enormous scalability. The system is capable of supporting several thousand applications at once. There is an asynchronous connection and the ability to perform error-free authentication. Also, there is no compulsory calculation of operations, which greatly simplifies functionality.
- Flexibility: The EOS network is able to stop and repair problematic development and utilize net congregation. A very convenient innovation is the ability to freeze faulty applications and quickly eliminate various kinds of inconsistencies.
- A wide range of possibilities: A declaratory authorization model and the ability to self-describe interfaces and tools allows users to work on the development of a variety of products. A good toolkit guarantees maximum convenience for users. There are self-describing database schemas and declarative permission schemes.
- Universal equality: Big buyers no longer have the advantage, since token pricing is not known in advance. Their price is determined exclusively by the actual demand of the market.
The developers of the project strive for unification, the abolition of overcharged commissions for transactions, and the expansion of computing capabilities. They are trying to create a blockchain that is suitable for carrying out large-scale commercial plans. A large proportion of the work is also associated with the elimination of hacker attacks. The creators have been able to achieve the maximum stable operation of block circuits, and attacks on a specific application are quickly localized and utilized.
In the future, the platform guarantees the implementation of blockchain in the most popular applications and will participate in the daily processing of huge amounts of information to serve millions of users around the world.
According to the developers, today, the EOS blockchain is ahead of Bitcoin and Ethereum in terms of transaction speed. Such high speed — thousands of transactions per second — is achieved by the DPOS algorithm. EOS has dedicated users (nodes) that make decisions, and all others use them, as well. As there is no competition between miners, the intervals between blocks can be reduced, and the transaction speed can be increased. Now, large miners in the Bitcoin network are also trying to increase block distribution time. Empty blocks are closed, the EOS network rolls back to the previous state, and these blocks do not go to the blockchain.
The creators of EOS network did not establish a centralization and therefore managed to achieve high speed for their own blockchain. High speed is necessary to ensure that the EOS operating system is widely used by millions of people. Theoretically, EOS.IO can become not only a payment platform, like Bitcoin, or a platform for implementing smart contracts, like Ethereum but also a platform for creating numerous decentralized applications. The main thing is that EOS is an open-source platform that is being developed by the efforts of the entire community. The latest version of EOS.IO DAWN 3.0, which was released in June, will feature the interaction of various public and private blockchains.
Consumer interest in the project has not disappeared since its launch and is ensured by constant progress. Prospects for EOS development are associated with its novel operating principle (there will not be uncomfortably long addresses for transactions, and, when sending messages within social networks, users will have to specify the recipient’s nickname) and staggering operational speed.
The active dynamics of EOS in terms of project development mean that the product, with a competent approach and maintenance of its rate of advancement, has every chance of entering the global market and taking its niche there. The project offers the user proven concepts and integrated modern technologies that function as an effective model for developing decentralized applications. Simultaneously, the user is not limited in functionality, which provides even greater opportunities for software creation and determines the EOS network as part of the global blockchain technology sphere.
A Final Word
So, what is EOS? EOS is a carefully-created project boosted by the faith of its community and investors, who need an innovative, fresh idea implemented on the blockchain market. We can confidently assume that EOS will accumulate and use the experience of many effective projects. Against this background, the huge amount of funds raised during the ICO does not look like an accident.
The global goal of the EOS team is to create a new future of finance that will be simple, fast, and reliable, taking into account all of the most pressing issues regarding digital money. The project offers the simplest and fastest network, with an operating model that is familiar and clear to every Internet user. EOS solves the issue of scalability, increasing bandwidth hundreds of times over. At least initially, EOS possesses a hierarchical accounting system and a host of management functions available to network members. If all of EOS’s goals are successfully implemented, it will greatly influence the field of digital currency and the global financial system.
If you’re interested in the blockchain development, the Applicature team will be glad to help you!