What is EOS (EOS)? | Complete Guide
EOS is a high-throughput blockchain platform for decentralized apps (DApps) and smart contracts to be developed and executed on.
Jump to: EOS ICO | Token Distribution | Token Swap | Team | Features | Partnerships | How EOS Works | RAM | Roadmap | Resources | Buy EOS
EOS is a blockchain platform, similar to that of Ethereum that allows decentralized apps (DApps) and smart contracts to be developed and executed on it. The network, which is developed by Block.one, is designed to be a culmination of the best blockchains and smart contract networks. The network is simple to use, free and not constrained by scalability issues that continue to affect the Bitcoin and Ethereum blockchains.
The EOS blockchain is looking to become the primary decentralized operating system that can support industrial-scale decentralized applications, and by so doing, opening the blockchain and cryptocurrency industry to the rest of the world.
EOS has attracted developers, investors, and traders recently with its claim to develop a platform that wouldn’t have transaction fees while also processing millions of transactions per second. For all its glory, Ethereum, which is the leading DApp and smart contract platform in the world, scalability still remains an issue as gas fees and congestion continue to mount.
The EOS ICO and token sale
|ICO Start date||06-26-2017|
|ICO End date||06-01-2018|
|Team Supply||100,000,000 EOS|
|Investor Supply||900,000,000 EOS|
|Token Issuance||ERC20 token|
A unique ICO structure
EOS came into existence in 2017, headed by CEO Brendan Blumer and chief technical officer Dan Larimer. The ICO was unlike any other project in the cryptocurrency world lasting one entire year.
As the longest ICO in the history of the cryptocurrency world, the team raised a total of $4 billion during that period, making it the most successful ICO in crypto history as well based on funds raised.
The token sale started in June 2017, with a total of 900 million tokens sold between then and June 2, 2018, with another 100 million EOS tokens reserved for block.one. These 900 million were not sold off instantly and they were also not sold at a specific price per token/share/coin. The EOS tokens are sold off in increments (windows or periods) and at market price.
At the time, EOS tokens were ERC20 tokens, implying that the project was first developed on top of the ethereum network until it launched its own network and moved the tokens there. The ICO was divided into two main phases. In the first phase, 20% of the total EOS tokens were sold to investors while another 70% was offered to the investors in the second phase of the ICO.
The first phase lasted for just a day while the second phase was broken down into 349 days with every day 2 million EOS being offered to the investors. During each phase, interested investors sent Ether (Ethereum’s native coin) to the EOS.IO address and the tokens were shared to the investors after the 24 hour period was over.
Token swap and migration to EOS blockchain (June 2018)
At the end of the ICO (June 2018), EOS token holders were told by Block.one to transfer their tokens to some cryptocurrency exchanges like Binance that support token swap, with the tokens migrated to the EOS network afterward.
The platform, which was founded by Block.one, was first launched on the ethereum network but later transferred the tokens to its network following the mainnet launch. However, its mainnet launch had several issues that delayed the network from being launched, with Block.one coming under heavy criticism for failing to secure its network properly and the centralization claims.
The Team behind EOS Blockchain
Brendan Blumer (CEO)
The company behind EOS is “Block.one”, which is based in the Cayman Islands and is headed by CEO Brendan Blumer, who has been involved in the blockchain world since 2014. Blumer has had experiences in the real estate and financial world after he founded The Accounts Network, a company that sold in-game MMORPG avatars, and Okay.com, an enterprise data sharing platform for real estate brokers in Asia.
Dan Larimer (CTO)
The chief technical officer and the brain behind the EOS project is Dan Larimer. He has been obsessed with Bitcoin and decentralization ever since he encountered it in 2009. He is known for creating BitShares and invented BitUSD, a trustless cryptocurrency pegged to the dollar.
Dan Larimer is also the co-founder of Steemit, Inc. and its CTO until March 2017, and he is the main architect of the Steem blockchain and Steem cryptocurrency. Larimer also heads Cryptonomex, Inc. which is a blockchain technology consulting company that was founded with his father, Stan Larimer. He and Blumer started EOS together after the duo met in 2016.
Ian Grigg and Brock Pierce (Partners)
One of the partners of EOS is Ian Grigg, one of the earliest pioneers in financial cryptography. He has been involved in cryptography since 1995 when he built one of the first cryptographically secured systems to issue or trade any kind of asset. He has recently worked with R3, the bank-driven consortium that aims to bring blockchain technology to finance, and is currently a partner at EOS.
Brock Pierce is a former child actor and a very popular figure in the cryptocurrency industry. He is the chairman of Bitcoin Foundation and a partner at EOS. He is popularly known for working with brothers Bart and Bradford Stephens in creating venture capital firm Blockchain Capital (BCC).
Type of coin: EOS was an ERC20 token issued on the Ethereum blockchain until its mainnet launch. EOS isn’t mineable, unlike the other popular cryptocurrencies like Bitcoin, Litecoin, and Ethereum (all EOS tokens were pre-distributed or locked up).
Token platform: EOS operates on the EOS blockchain. The token was originally launched on the ethereum network. However, Block.one has launched and the token swap is now complete.
Transaction speed: The EOS network isn’t fully been used by traders and developers yet but the development team has claimed severally that it has solved the scalability issues affecting most cryptocurrencies. This means that the network would have the fastest transaction speed in the cryptocurrency world.
Throughput (tx/s): Block.one has claimed on several occasions that the EOS network would be able to handle one million transactions per second, making it the fastest blockchain and makes it even faster than Visa.
Technology (DPoS): EOS is popular for using Larimer’s delegated proof-of-stake (DPoS) consensus protocol. This method differs from the usual proof of work (PoW) and proof of stake (PoS) that most cryptocurrencies use. DPoS ensures that no single party is able to control a disproportionate amount of power in the network.
Privacy: EOS isn’t one of the cryptocurrencies that are known for its privacy. Dan Larimer has always been an advocate of radical transparency and believes that real name, birthday and photo should be public. EOS doesn’t have security features.
Security: EOS has performed poorly when it comes to the security of its network. Few days to its mainnet launch, Chinese security firm 360, discovered some flaws in its network that delayed the mainnet launch. More bugs and flaws have been discovered after that, which points to the fact that the EOS network doesn’t have a robust security.
- FinLab AG: earlier this year, EOS signed a $100 million agreement with FinLab AG, a major European fintech firm for a development fund that will support outreach and future EOS projects. FinLab AG is one of the first and largest company builders and investors focused on the Financial Services Technologies sector in the Eurozone.
- Galaxy Digital: EOS also partnered with Galaxy Digital, a full-service digital-assets merchant bank founded by billionaire investor Mike Novogratz. The duo announced a joint venture with Galaxy Digital for a new $325 million fund at the start of the year.
- EOS Global: In April, Block.one signed announces a partnership with blockchain veterans Michael Cao and Winnie Liu that sees the formation of a new $200 million joint venture fund, EOS Global. This partnership will see EOS Global make strategic investments in Asia-focused projects utilizing EOS platform.
- Bancor: EOS partnered with Bancor, creators of the Bancor Protocol standard for automatically convertible Smart Tokens. Bancor protocol will be implemented on the EOS network.
How Does EOS Work?
The EOS network is one that has given a lot in order to gain the ability to scale to millions of users and to conduct millions of transactions per second. The EOS token holders delegate 21 block producers who have been tasked to construct blocks in order to gain rewards for it. They work in the same way that miners do.
EOS blockchain will be able to provide a DApp platform that will smoothly scale to thousands of transactions per second. It would also be able to provide an accessible experience to app developers, entrepreneurs, and users.
The network would provide and complete operating system for decentralized applications by offering them services they can use such as user authentication, cloud storage, and server hosting, which developers pay in RAM.
What is EOS RAM?
RAM represents space on a database (in this case, the EOS blockchain). As a developer on the EOS platform, RAM is the limited resource that is consumed upon storing the database records of your application.
How does EOS RAM work?
In order to ‘buy’ storage capacity (RAM), token holders (app developers) must stake their coins at predetermined rate of RAM/EOS. The RAM is then allocated based on your EOS stake as a proportion of the entire network’s stake.
Issues with EOS RAM
RAM on the EOS blockchain has been tokenized and now trades on a secondary market. This has attracted hoarders and speculators, leading to significant price surges in RAM prices. Block.one is working on various proposed solutions to address the mounting and important issue.
The EOS system also comes with server hosting and cloud storage, which means that app developers can develop and deploy their applications and web interfaces with hosting, cloud storage and download bandwidth that is provided to them by the EOS system.
Developers using the EOS system will be granted access to using analytics for storage and bandwidth directly from EOS. They would be able to set limits for certain applications, depending on the level they chose. These services can be accessed using the EOS tokens.
EOS platform is free for users. An application is built on the EOS network wouldn’t require any micropayment from the end users before sending messages or performing tasks on the blockchain. The app developers will be given the sole power to determine how the transactions fees will be paid, with the transaction fees usually very low.
Companies thus have the power to design their own monetization strategies and offer their users service for free or not.
EOS platform is working to ensure that developers have the freedom to upgrade their DApp as and when they wish. If a bug affects a DApp, then the developers should be able to fix it without affecting the entire platform.
The EOS project has five major milestones:
Milestone 1 – Minimal Viable Testing Environment (Summer 2017)
The main aim of this milestone is to establish the APIs that developers will require to start building and testing applications on the EOS platform. This phase was slated to end in the summer of 2017 but was completed in September 2017. This phase was completed successfully and most features were working.
Milestone 2 – Minimal Viable Test Network (Fall 2017)
This phase was slated for release in the fall of 2017. The milestone showed that the network sustains several thousand transfers per second and 1-second blocks using their single-threaded implementation on average hardware.
Milestone 3 – Testing & Security Audits (Winter 2017/Spring 2018)
This milestone was expected to be released in the spring of 2018. This is the phase where the network would be tested for any security issues. The EOS network was discovered to have some bugs prior to the mainnet launch.
The EOS Mainnet Launch Group (EMLG) worked tirelessly to fix those bugs and ensure that the blockchain was launched successfully.
Milestone 4 – Parallel Optimization (Summer 2017)
This phase will focus on ‘optimizing the code for parallel execution’.
Milestone 5 – Cluster Implementation The Future (no date provided)
No detail provided for this phase.
Helpful EOS community resources
Where to purchase EOS (EOS)
EOS (EOS) is the fifth largest cryptocurrency in terms of market capitalization with a market cap of approximately $8 billion USD and a circulating supply of 896,149,492 EOS.
Buy EOS with USD, EUR, CAD and more
If you are looking to exchange your local currency (fiat) for EOS (EOS) token, you will need to first buy Bitcoin or Ethereum first from any of the following exchanges:
- CEX.IO (global)
- Coinbase (USA, Canada, Europe)
- BitPanda (Europe)
- LocalBitcoins (global)
- QuadrigaCX (Canada, USA)
Buy EOS with Bitcoin or Ethereum on Binance
Since you cannot buy EOS directly with USD, EUR or CAD, Next, go to Binance to buy EOS with Bitcoin (BTC) or Ether (ETH).
Other ways to buy EOS
You can also buy EOS (EOS) using Changelly but you’ll need a wallet first.