EOS was developed by Dan Larimer, the creator of BitShares and Steemit, and will not only compete with other intelligent contract platforms such as Ethereum, but also represent a true third-generation crypto currency platform.
EOS works according to completely different principles than other blockchain projects, since it uses a system known as “delegated proof-of-stake”.
What is Bitcoin Trader?
At its core, EOS should be a highly scalable platform on which decentralized applications can be executed without problems. While competitor Ethereum can be considered a global computer, EOS is more like a global operating system. The intention of the developers for Bitcoin Trader is to enable fast and easy deployment of distributed applications (or dapps).
While Ethereum-based applications have to be built from scratch every time, EOS claims to be able to implement a variety of standard applications with minimal effort.
From a technical point of view, EOS differs greatly from Ethereum in its consensus model. Ethereum still works according to the proof-of-work model (POW). It is likely to move to the proof-of-stake model called Casper POS in the coming months.
The founder of EOS, Dan Larimer, wanted to prevent the formation of mining pools that could theoretically endanger the security of a blockchain by centralizing resources. To prevent this, Larimer introduces a consensus model, which he himself calls “delegated proof-of-stake”.
The EOS consensus model
A “delegated proof-of-stake” means that only 20 units may create new blocks at a time. These 20 miners are called witnesses.
At the end of each 21-block round, the top 20 are automatically selected. The percentage of votes earned determines the number of blocks the witness is entitled to create. Since the unit that digs the block receives the entire block reward, it is a very lucrative and coveted position.
The reason for creating a delegated proof is to prevent the formation of mining pools in order to increase the security of the network. The need for voting and the limitation to 20 units greatly reduces the number of people who are able to influence the block chain in a potentially harmful way.
Similarly, if a witness is elected, he is encouraged to act in the best interest of the blockchain so that he does not lose his position and all potential gains.
Current EOS share price
Millions of transactions per second
In an interview on YouTube with YouTuber Ivan on Tech Larimer stated that a blockchain project can only be accepted if it works smoothly.
Therefore EOS was designed so that no crypto currency unit of any kind is required to participate in or interact with the EOS – Blockchain. The blockchain is designed to handle millions of transactions per second. EOS is still under development and will not be published until later this year.
The ERC 20 token controversy
Eos started his ICO in the middle of last year. However, since the block chain does not yet exist, it was not possible to offer EOS tokens for sale directly. Instead, a bridging measure was introduced. The EOS tokens were published as Ethereum ERC-20 tokens with the expectation that they can later be exchanged for EOS tokens as soon as the platform is released in mid-2018.
Unfortunately, there was also a worrying entry in the white paper. Holders of EOS ERC 20 tokens are not necessarily entitled to the “original” EOS tokens. Investors feel betrayed because they fear that their ERC-20 tokens are worthless.
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Conclusion: EOS Review
What EOS offers is certainly convincing. Although it will not necessarily replace Ethereum, it could prove to be a serious competitor.
In recent months there have been a number of “Smart-Contract” and “decentralized app” focused blockchain projects. For example, Cardano and QTUM could threaten not only EOS, but Ethereum as well.
If EOS is really able to offer free transactions, this could be a decisive advantage over Ethereum. Nevertheless, you should see for yourself whether it is worth the risk of investing in a project that has not yet been published.