Cryptocurrency News, ICO Reviews. Blockchain Features: 100% Ad Free & Independent

What Is EOS? Introduction To The EOS Token

EOS stands for... wait.. they say "we have decided not to formally define it ourselves."

3,987

EOS is a network and platform for applications built on Ethereum that performs many of the same functions, but with much greater capacity — up to millions of transactions per second. The EOS token was issued during the ICO, retains a high market capitalization in the billions of dollars, and is required for one crucial aspect of the EOS system.

The purpose of EOS is to enable highly-scalable applications which can interact with the Ethereum blockchain. EOS stands for Ethereum Operating System (according to some – but the project itself leaves it to your imagination!) and even if this isn’t official, the name helps explain its aim: to provide an operating system-like environment for decentralized Ethereum applications to be built. Such solutions are necessary, and great market interest has been shown in EOS and other Ethereum scaling ideas.

At time of writing, distribution of EOS tokens was still actively going on, the developers having chosen a somewhat unique model for distribution which saw the emission of a small number of tokens each day for 350 days. At its height since trading opened back at the beginning of July 2017, the token has seen a price as high as almost $20.

EOS alleviates problems with scale while improving the user experience when dealing with Ethereum applications. For developers, EOS can be seen as almost as important as Ethereum itself. It enables less expensive execution of smart contracts which in turn enables new kinds of applications to be built. Because lowering or eliminating fees associated with executing code on Ethereum is, in itself, a valuable market opportunity, EOS has consistently found itself among the top cryptocurrencies by market capitalization.

EOS itself provides much of the same functionality as the Ethereum network, and of course relies on Ethereum. But it can scale to potentially millions of transactions per second by comparison to the Ethereum network itself. By bringing both scale and accessibility to developers, it provides inherent demand for its token in that the token is required for other tokens to be launched on the EOS network. As many as a dozen EOS DApps have already been launched.

The Scalability Market in Ethereum

As we’ve described in our article on Ethereum, it can be slow to use directly. In some ways, this situation is a positive because it creates opportunities for solutions to be created, and this can create new economic opportunities. EOS is one solution that has come to the fore, while others such as Raiden Network and Zilliqa have similar aims. EOS uses parallel processing and asynchronous communication to create the potential for millions of transactions per second.

It’s important to understand that demand for Ethereum blockchain applications and beyond is still very new. Yet, even with the nascent nature of the entire blockchain, the Ethereum network experiences congestion. The importance of efforts which achieve greater scaling than the native Ethereum network can’t be understated: the need for EOS and even additional scaling solutions will over time increase, just as demand for the Ethereum network itself will increase.

While EOS interacts with the Ethereum network, it can power applications and even facilitate ICOs in the same way that Ethereum can.

In the meantime, developers can instead to build on solutions like EOS, which enhances development by creating an accessible platform to build on. The important thing to understand about what EOS enables is that while applications built directly on Ethereum might experience delays in transaction time by nature of the crowded Ethereum blockchain, similar actions taken on the EOS blockchain will be done much faster.

EOS has Experienced Developers

EOS is developed by Block.one, which comes with Dan Larimer, who previously invented Bitshares and co-founded Steemit. Larimer has been called a “visionary” and prior to launching EOS had mused about eliminating the need for fees in decentralized applications.

Larimer brings his experience to the fore in EOS, being the second most active contributor. The most active contributor at time of writing was a coder named Kevin Heifner, who has previously worked at Boeing and maintains a title of Principal Software Engineer at Object Computing, a medium-sized industrial software firm based in St. Louis.

Long-Term Importance of EOS

In the early stages of Ethereum and other cryptocurrencies, it can be hard to see why the necessity for third-party applications and platforms enabling scaling as well as easier development of applications will be important. At present, it’s possible for applications to function reasonably even when the network is particularly active. The situation occasionally becomes very different, though, and during these times applications built with scaling solutions such as EOS would have little or no interruption.

Direct access to the network itself could eventually become either too expensive or too slow to be relied on for new applications. Instead, side networks like EOS will be utilized. Eventually the Ethereum network will be in such high-demand that for developers to reliably access it, third-party avenues will be the most sensible way to do that.

 

EOS Summary

  • EOS helps fix the scaling problem in Ethereum by providing an alternative network that can handle millions of transactions per second.
  • It creates a developer-friendly atmosphere for building new, fast Ethereum decentralized applications.
  • The EOS token itself is only required for the registration of new applications. Its demand is based solely on the need for EOS, which grows as more products are built on top of the Ethereum blockchain.
  • It is developed in part by Dan Larimer, who has worked on other successful blockchain projects including Bitshares and Steemit.
  • EOS and other scaling solutions will be important and necessary for the long-term growth of Ethereum. The tokens can make good long-term investments when they are necessary in order for developers to build applications using the scaling technology in question.
News, And Only When It's NEWS
Sign up for occasional updates on whitelists, important news, ICO reviews and more.
You can unsubscribe at any time, and we NEVER sell your info.

Comments are closed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. AcceptRead More

X
X