What is EOS?

EOS sets out to revolutionize the world of blockchain ecologies, smart contracts and dApps. Based on the concepts that Ethereum first introduced, new standards of performance and scalability are set. If all this succeeds, EOS could become Ethereum 2.0 and outstrip the great role model.

EOS Website

EOS began life in June 2017 and is a cryptocurrency on the one hand, and a general platform for blockchain-based applications on the other. At first glance, the simple geometric logo seems strangely familiar and even a superficial view makes it clear that EOS has more in common with Ethereum than the first letter. In fact, the developers of EOS understand the system as a new or further development of Ethereum. The leitmotif in the development of EOS (Eos is also the name of the goddess of the dawn in Greek mythology) is thus a fresh start, with a steady view of the implementation of a complete system that offers not only room for its own currency tokens on its blockchain but it can also be the foundation for other currencies and blockchain ecologies through smart contracts.

Development and Status Quo

EOS is being developed by Block.one, a company based in the Cayman Islands. Specifically, it is a software called EOS.IO, which combines all the functionality and is therefore referred to by the developers as a blockchain operating system. The fact that EOS also wants to be the basis for other cryptocurrencies and systems is not just a declaration of intent, it manifests itself in the development environment called Dawn, which is named not just to match EOS (Dawn in English), but to developers future cryptocurrencies should be able to implement their own systems as tokens on the EOS Blockchain.

EOS Korea Meetup

EOS is still in development at the moment. Many, if not all, of the ambitious goals of the currency, still need to be achieved. In practice, EOS currently exists only on the Ethereum Blockchain as ERC20 token (the most widely used standard for Ethereum-based tokens). Initially being proposed as 1 billion tokens, EOS will be distributed over the course of a year at the end of June 2017, with 100 million EOS remaining with block.one. The long phase of the launch is explained by the developers’ belief that potential prospects have enough time to get started and also have the opportunity to learn about EOS technology before they get involved.

What does EOS want to do differently?

As mentioned above, EOS compares itself most closely with its own model Ethereum. In essence, there are three new features: One is the freedom of transactions. Ethereum charges a small but ever-increasing amount per transaction for each transaction, but EOS does not. Furthermore, EOS should make it possible to restore the entire system to an earlier state in the event of serious disruptions such as hacker attacks or software errors in EOS.IO and thus restore them in an intact state, so hard forks are largely avoided. Finally, EOS promises scalability and performance that should overshadow Ethereum, the means of choice being the departure from the proof of work.

Benefits of EOS according to website

How does EOS work?

The method used by the Delegated Proof of Stake is the algorithmic basis for the blockchain. In simple terms, proof of stake is based on the participation of all nodes in a network that actually has currency shares, ie EOS assets greater than zero. These proportions are assigned proportions proportional to the value of the stake, on the basis of which those nodes are selected that continue the blockchain. Proof of Stake is a double-edged sword; On the one hand, almost no computational effort is needed, which makes Proof of Stake much more efficient and faster than, for example, proof of work. On the other hand, in this approach, participants with larger shares are preferred for mathematical reasons, which in the long term can lead to an oligarchy (rule of a few) in the network. One way out of this dilemma is Delegated Proof of Stake. Here, a set of representatives is selected from the set of stakeholders by proof of stake consensus for each new round of block generation, in the case of EOS this is 21 knots.

Currently, EOS is still at an early stage of development and its outlined features are far from being fully implemented. So it does not lack a certain irony that the currency EOS is currently still being implemented as a token on the Ethereum Blockchain, so that the new system is technically still based on the older, against which it actually compete and that it may sooner or later surpass should. In fact, EOS uses proof of work as an algorithmic basis through Ethereum itself. (Ethereum is in the process of using Proof of Stake for its own blockchain, but this is currently only happening in small parts and a full conversion to proof of stake is still in the foreseeable future.) The coming months and years will have to show if EOS can fulfill the comprehensive promises it has begun on its way.

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