what is EOS Cryptocurrency and how does it work ?

EOS Digital Currency (EOS) is an EOSIO proprietary blockchain token. This token is for paying to run some applications on the EOS network. What affects the EOS is its potential for increased scalability. The network was created in June 2018 by Block.one and co-founded by Dan Larimer and Brandan Bloomer. The coins themselves were launched in June 2017. Larimer, the creator of the blockchain, was famous for helping Bitshares and Steemit before starting the project. He is also one of the people who helped develop the concept of proving the shares transferred.

What is EOS ?

EOS is a platform designed to build decentralized applications. This decentralized platform enables the use of smart contracts and DApps, making this digital currency a competitor to Ethereum. Blockchain operating system was released on January 31, 2018 and has been ranked 13th in CoinMarketCap for more than a few years.

EOS Digital Currency aims to improve the user and business experience. While the project seeks to create more security and less discord for consumers, it also seeks to create flexibility and adaptability for companies.

EOS claims to be the strongest infrastructure for decentralized applications. EOS is basically a blockchain technology that is just like Ethereum. They plan to build their own blockchain with a long list of impressive features. Some even consider EOS to be the main killer of Ethereum. However, with all the excitement of EOS, a lot of pessimism comes from the digital currency community.

In fact, EOS has great apps. This software will act as a decentralized operating system. Developers can then build applications on EOS software. The most notable feature of this digital currency is its horizontal scalability, meaning that the EOS blockchain is able to execute smart contracts in parallel and process transactions simultaneously.

EOS is part of the stake proof algorithm, or PoS developed by one of the founders, Dan Larimer. This system is less focused or consumes much less energy and is very fast. In addition, there will be no commission for the EOS blockchain. It also sets them apart from the competition and can help them make the most of their operating system.

How does EOS work?

EOS management is based on its own consensus mechanism in which 21 people are selected each day to validate transactions. The user community selects these 21 lawyers or deputies. It has several advantages:

The first is that credibility is accountable for their actions, and if society is not satisfied with their performance, it can withdraw its vote. The second is that having a small set of creditors takes very little time to validate transactions. In addition, having a small group of voters solves any potential problems with daily voting.

The supply of EOS digital currency grows by about 5% per year, of which 1% is allocated to block validations at the end of the year. This reward is given to them for their efforts throughout the year to encourage them and thus be effective in maintaining their performance. With the help of the EOS specific consensus protocol, there is a high potential for scalability. No matter how large the network community is, the small number of daily selectors selected to validate blocks keep transaction speeds high. Paying part of the EOS to block creditors also eliminates the need for transaction fees.

The Technology lies beyond EOS

EOS seeks to address many of the problems of speed and comparability that plague first- and second-generation blockchains.

Many believe that Bitcoin and its counterparts are too slow to deliver on their universal promise. Of course, it is understood that Bitcoin has provided a Lightning solution to solve these two problems. Similar to Bitcoin, Ethereum still faces a scalable challenge to serve a huge economy, despite a slight improvement in transaction speed compared to its peers. Ethereum can currently only process 20 transactions per second, and its developers are working hard to increase that speed.

EOS and its token, however, are fundamentally designed to process millions of transactions per second so that they can be a better option for a complex deep ecosystem and decentralized economy.

EOS is working to make depot development easier and more efficient. At present, developers on current depot building platforms have to repeatedly address a number of issues each time they develop their desired depot. Issues such as account retrieval and creation, multi-signature accounts, messaging, location-based permissions, and more.

EOS seeks to address these issues by providing developers with many of these common features so that they do not have to build and develop their desired features from scratch. This feature allows software designers to spend their time on the unique features of their decentralized applications instead of the general features.

The pros of EOS digital currency

The benefits of this digital asset are as follows:

Unlimited scalability

This network has almost unlimited scalability potential. This is due to the agreement mechanism that enables EOS to handle millions of transactions per second regardless of network growth rate. This is because as the network grows, so does the collection or group of creditors.

The most popular decentralized programs

Decentralized applications built on the EOS blockchain are used and traded more popularly than their competitor, Ethereum. This is partly because network ownership is reserved for coin owners.

Responsiveness

The EOS consensus mechanism allows the network to respond more quickly to problems such as Dao attacking the Ethereum network. If the same thing happened to the EOS digital currency network, Blockchain creditors could vote to block the program until the problem is resolved and allow the network to operate normally.

Decentralized EOS operating system

The fact that it is a decentralized operating system software allows token holders to own part of the network in proportion to their share of tokens. This eliminates the need for transaction fees that networks such as Ethereum need to operate.

The Cons of EOS digital currency

Undoubtedly, no project is complete. The EOS blockchain and the EOS digital currency, like other digital currencies, have weaknesses that we will mention below:

Multiple EOS competitors

Like Ethereum, it has several competitors including NEO, Rootstock RSK and RChain. In addition, there is still room for other similar platforms with EOS-like mechanisms.

Support for unsupported tokens

Although the EOS community is working hard to implement the Blockchain so that holders of Ethereum-based EOS tokens can claim their tokens in the new chains, this is not legally required. As Block Datwan, as the executive agency of EOS, has not launched any Chinese blocks for the project, it is the responsibility of the users to ensure this.

Ability to focus on EOS currency code

Some say that EOS is more centralized than other platforms, including Ethereum, because of the DPOS protocol. This is not a far-fetched concern, as EOS relies on only 21 blockchain makers to approve all transactions. Because eventually several large data centers take over the EOS digital currency network. Another issue that worries some is that ordinary users will not be able to calculate the EOS system. Unless they become a complete or complete node. Finally, the EOS relies on voting, which in similar historical systems has seen a decline in participation over time, which in turn can lead to more centralism and fewer people in determining the direction of the blockchain.

It is clear that Block Datwan claims that the EOS blockchain still has a lower degree of centralism than Bitcoin and Ethereum. Because in these two blockchains, a small number of mining pools are responsible for approving all network transactions.

Abuse of EOS

One of the unique features of Currency Password is that it allows users to send and receive transactions anonymously. Just like trading cash in the real world. However, some people resort to currency codes so that they can use them anonymously to commit a crime. Crimes including drug trafficking, weapons and stolen bank cards. For example, in one case, bitcoin was used to pay for private assassinations.

EOS, meanwhile, is no exception. In addition, we should not forget that most blockchain databases, such as Ethereum and Bitcoin, are quite public. This means that anyone connected to the Internet can view all transactions made in the Chinese blockchain, as well as the balance of all accounts.

However, according to Daniel Larimer, former founder of EOS, while the address of the sender or recipient of transactions cannot be hidden from others, the entire balance of the user’s wallet can be hidden.

This feature can be very attractive for those who are looking for tax evasion. Because they can hide their wealth from the tax authorities. Of course, the advantage of this feature is that it provides more security for the holders of rich digital currencies. The important thing to keep in mind is that all technologies can be misused, but only a small minority are looking to do so.

In conclusion

EOS has the potential to turn blockchain technology into a core technology with high-speed transactions, user-friendly development tools and teamwork. However, there is a long way to go to achieve this goal, and there is now strong resistance from activists in the digital currency community and the blockchain against the EOS digital currency. However, if the Datwan Block Institute, as the EOS operator, proves that the Blockchain, like its counterparts, is decentralized and offers many advantages over the traditional Blockchain platform, it could become a major player in the subsequent evolution of the decentralized economy.