Early cryptocurrency projects like Bitcoin and Ethereum have often been touted as innovations that will change the world as we know it, and rightly so. However, most enthusiasts fail to recognize the limitations and shortcomings of these projects. You must have come across extreme Bitcoin lovers who call other coins (altcoins) ‘shit coins’. But the reality is that, Bitcoin has scalability, security, and decentralization issues. This is why other projects are springing up to tackle some of these issues, because there is a huge gap between the current state of most blockchains, and what is required for them to go mainstream.
EOS is one of these projects that aims to solve some of the problems of existing blockchain platforms. These problems include:
- Low transaction throughput of 9 and 30 transactions per second for Bitcoin and Ethereum, respectively.
- Proof of work system which relies on mining, and is wasteful with regards to capital and electricity
- Payments of fees to interact with the platforms
- Lack of a governance model which lead to Ethereum DAO hard fork, and Bitcoin scaling deadlock
EOS is a decentralized platform for creating decentralized applications and smart contracts. Sounds like Ethereum, right? EOS has often been dubbed the “Ethereum killer”. Similar to the Casper protocol of Ethereum, EOS uses a delegated proof of stake algorithm to process transactions – 21 blocks work together to validate transactions. Every 3 seconds a block is generated and only one delegate is authorized to produce a block at any time.
EOS also achieves higher performance by using messages, instead of state to represent and execute transactions. Additionally, by supporting asynchronous smart contracts, EOS is able to run cheaper and faster. Executing smart contracts come at a zero cost, and there is no bloat when several smart contracts are executed simultaneously.
Transactions on the network occur in parallel, as opposed to serial processing which is common to most blockchains. What this means is that multiple processes can occur at the same time without being queued. Doing this supports large-scale applications.
All of these upgrades combined makes EOS a largely scalable blockchain, without compromising security, throughput, and speed. Scalability can occur both horizontally and vertically.
Block.one is the founding company of the EOS project and has Brendan Blumer and Dan Larimer as its CEO and CTO, respectively. The team is made up of 35 individuals with experience in business, finance, cryptography, and blockchain tech, making it really interesting.
Noteworthy mentions on the team include:
- CEO, Brendan who is a serial investor and salesman with 15 years of experience in ventures selling.
- CTO, Dan who is a software engineering with prior blockchain experience working on Steemit and Bitshares using Graphene (a tech he developed). With Graphene transactions could hit 100,000 TPS.
- Ian Grigg who is the inventor of the Ricardian contract. He also has 5 years of experience in financial cryptography.
EOS definitely has potentials and the lessons learnt from previous blockchain projects is a huge advantage to the team involved. If the project lives up to its plan, then we should expect an increase in price.