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EOS is a blockchain platform with support for smart contracts and a complete toolkit for creating and managing dApps.

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What is EOS?

EOS is a blockchain platform with support for smart contracts and a complete toolkit for creating and managing dApps. Many participants of the cryptocurrency community call this project Blockchain v.3.0. EOS is similar to Ethereum, but developers say that it solves the network scaling and speed problems much better than Buterin’s project.

After rebranding, the platform’s official name was transformed into EOSIO in 2018. It has since already become one of the leading platforms in the number of daily transactions.

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How EOSIO Works

EOS dApps

EOS creators will remind you that EOS is only a toolkit for creating new blockchain projects. There is no ready-made blockchain on the basis of which the apps will work, only the toolkit EOSIO Dawn. It appeared in the public domain immediately after the completion of the ICO in June 2018. With this toolkit, users can easily create their own blockchains, establishing their own rules for functioning and use.

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EOS Authentication Mechanism

The main difference between the EOS authentication mechanism and other blockchain systems is the presence of many customizable settings, all of which can be used by any participant in the EOS network. Accounts have their own levels of access to specific projects and dApps. If necessary, database exchange is possible from various accounts. There are also several account recovery options, plus a special algorithm allowing users to combine them. Independent developers continue to improve this system.

EOS Cloud Service

DApps developers can use the cloud service provided by the EOS platform, and everyone is free to use the necessary system resources, data transfer channels, etc. with no restrictions.

At the same time, EOS offers the ability to evaluate the resources used. The developer can decide what resources an application needs and set the necessary restrictions. Cloud Service is not free. The more resources you need, the more EOS you must have.

No Fees Service

As was previously mentioned, the main difference between this platform and many other blockchain systems is the absence of transaction fees. The main EOS platform is completely free. with access to the basic set of components for creating your own blockchain and applications costing nothing for all users.

However, if you need to gain access to additional resources, such as using a cloud service, you will have to pay. That being said, the EOS creators claim that the “basic” toolkit is more than enough for most developers. Payment principles are set by the dApps developers. Everyone independently decides how to earn with EOS. In turn, simple users will pay EOS tokens for access to dApps.

Scaling Service

EOS is superior to Ethereum and Bitcoin in scaling issues, as there is no limit on the number of transactions per minute. The main role is played by the principle of the block creation in the blockchain because it differs from the generally accepted scheme.

In classic systems, each block records transaction information, which is first checked by all network participants before being added to the blockchain.

In the EOS-based blockchain, the date of transaction is the only info recorded. Accordingly, a chain of events is recorded and checked, but not the network status. This method requires more time to synchronize with the blockchain, but transaction verification speed increases.

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EOS Staking

EOS blockchain consensus is achieved by DPoS, while users can participate in creating blocks. You can receive passive income with Guarda Wallet.

There are three resources on the EOS network - RAM, CPU and NET.

CPU is used to execute transactions
NET is the amount of information that your transaction takes in a block
RAM is required to store data on the blockchain

Instead of paying a network fee when sending a transaction, you use two resources - CPU and NET. You can stake EOS to increase the amount of CPU and NET. Enter the amount of CPU and NET and confirm it.

About staking: Staking in EOS is called ‘Block Producing’. Block Producers run nodes to maintain the EOS Mainnet. Anyone holding EOS tokens can vote for the Block Producers. The 21 Block Producers with the most votes will become block creators. Each token has the ability to vote for 30 different Block Producers (one token cannot be used to vote more than once for the same Block Producer).

EOS has a fixed 5% annual inflation.

4% goes to a savings fund, which might distribute the funds to the community later on
1% goes to Block Producers and Standby Block Producers
0.75% will be shared amongst all block producers and standby block producers
0.25% will go to the actual 21 producers of the blocks.

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EOS History and ICO

The EOS Initial Coin Offer (ICO) lasted almost a year (350 days), becoming one of the longest in the cryptocurrency projects history. The ICO was carried out in two stages: during the first stage, from June 26 to July 1 2017, 200 million coins were sold with a total value of $170 million. During the second stage, which lasted until June 1 2018, investors bought up 700 million EOS (1 EOS = 1USD). The total initial issue amounted to 1 billion coins, but 100 million of them remained in the property of Block.One, the company that is developing the project. As a result of the fundraising campaign, almost $4.2 billion was raised.

Block.One comprises a team of more than 50 people, including American IT entrepreneur Brendan Blumer as CEO. Another EOSIO co-founder is Daniel Larimer, the CTO of Block.One.

EOS Capabilities

The main principles of the EOS project are scalability, high speed, flexibility, simplicity, and adaptive UI for developers and users.

The key goal of EOS is to create a versatile functional environment that can offer all the available features of smart contracts, reliable hosting for dApps creators, and decentralized storage for corporate solutions.

The project team claims that EOS is not a blockchain. The developers say that they’re not making a specific blockchain - instead only providing a platform for blockchain creation with the necessary tools. Anyone can use the EOS toolkit to create specific blockchain systems for their own needs with EOS acting as the operating system for managing a distributed database. The operating environment is similar to the popular non-blockchain-based applications for working with templates and programming languages.

It is very important that transactions are absolutely free for all dApps users. No transaction fees! The developers instead choose a monetization strategy for their dApps to cover the costs of using the network.

This is made possible thanks to multi-threaded transaction processing, high scalability (which, according to the developers, can process more than a million tps with help of asynchronous communication and parallel processing), and a DPoS consensus mechanism.