We have seen emerge of multiple Crypto based blockchain projects, where each one of them is competing with each other and among them, EOS is the fast-moving racer, so What is EOS?
Yes, if you are a beginner or an investor looking for the best investment portfolio than in this guide we will talk about what is EOS and how this is going to be an Ethereum Killer.
The most prominent factor on which everyone is working in this blockchain based crypto industry is scalability issues and EOS has a solution for that.
If you will focus on CoinMarketCap than you can see more than 2000+ Cryptocurrency based projects are running on.
But only a few are able to catch the eye of the market and EOS is one of them, currently, EOS is at number 4 in total market capitalization.
What is EOS and why this is special to discuss today, I have all points to bring for you do not miss till the end.
The best part is we will also compare EOS with the second largest leading CryptoCurrency Ethereum.
Table of Contents
What is EOS: Why this is Ethereum Killer?
EOS is the blockchain based Crypto platform is created by Dan Larrimer in the year 2017.
Dan Larrimer was also the creator of Steam and BitShares and well-known person in the blockchain industries.
EOS is developed by the Block.one which is the leader of providing high-performance blockchain solutions.
EOS got popularity, as it was started back in 26th, June 2017 in ICO and its ICO was run for 350 days till 1st, June 2018.
In ICO itself, they have made around 4 Billion USD worth of Ethereum which is amazing and no other ICO till date have made such a massive amount.
EOS is mainly focussed on solving scalability issues which means that how many transactions can a blockchain network clear per second.
While talking about Ethereum, it has the capacity to clear around 15 transactions per second however in case of EOS is around 4000 Transactions per second.
EOS is claiming to increase this transaction speeds to millions of transactions per second.
While talking about the real use case of any blockchain network is, it should allow Smart contract to built upon it.
Same as Ethereum allow to built DApps on Ethereum blockchain network, EOS is mainly created to offer the same services to built smart contract and allowing DApps to build upon it.
Now coming to the Ethereum Killer, why this is so.
The current issue which Etherum is facing is with the Scalability which can clear only 15 transactions per second.
However, EOS has increased its Block size which has currently 4000TPS, which you can check from their official EosNetworkMonitoring.
Which they are claiming that in future it will be capable to clear millions of transactions per second.
Both Platforms allows to built DApps upon them but there is a different way to use both Ethereum and EOS network.
At this point, I can consider that you got an Idea what is EOS and why this is going to big.
We have drafted a separate guide to highlight the differences between EOS vs Ethereum, I hope you will enjoy that as well.
To prove more on how this is going to be the killer of Ethereum, let’s learn the use of Ether and EOS token?
What is the Use of EOS token?
However, XRP and Lumens are the digital assets used on their blockchain network but this is not mandatory to use Lumens and XRP to user Stellar or Ripple network.
Which indicates that adoption of their network won’t mean that the price of their digital assets or cryptocurrency will rise in the future.
But this is not the case with EOS and that is why it is eye-catching for every Crypto Investors and DApps developers.
Let me put some strong point on how EOS could be the Ethereum Killer?
Ethereum allows ERC-20 tokens to build upon its network and they have built upon an idea that to run your applications on Ethereum network you would need Ether token.
Every transaction to happen in Ethereum blockchain network would need GAS (fuel) to be paid.
That means if you are sending money or Ethereum builds DApps are doing some transactions than it will require Ethereum token to pay unless this fee, it is not going to complete.
Means you are renting Ethereum blockchain network by paying their Eteherum token whenever you initiated any transactions.
Which makes you uncertain for use of Ethereum in the future while the price of Eteherum will rise in the future.
However, EOS follow another mechanism of stacking, where instead of renting services like Ethereum you are owning their network.
Yes, to use EOS blockchain network you have to stack specific amount of EOS tokens, the percentage you hold tokens the ownership you will get in blockchain network.
Means EOS blockchain will offer you kind of blockchain based Operating system, where you can own specific amount of CPU, RAM by stacking their EOS tokens to an official wallet.
EOS won’t ask for paying EOS token in transaction fees, it will be completely free to use network if you have stacked the coins and taken ownership of the network.
In summary, it will help DApps developers or EOS blockChain users to plan their estimated budget.
On another way will increase demand of the EOS token.
Another big point is the require coding language to build DApp, EOS allow to use basic language like C, C++ and many more to write your application.
However Ethereum strict to use language call Solidity which reduces flexibility for each individual to build DApp upon it.
It explains, that a network which has the capacity to scale up to millions of transactions per second and network ownership mechanism is far better than Ethereum.
That is why people are debating that EOS is the killer of Ethereum.
How EOS Works?
We have seen that the security and integrity of any blockchain network are maintained by the miners or transactions validators.
This makes transaction confirmation times longer and reduces per second transaction speeds.
EOS is working on Proof of Stack (POS) instead of Proof of Work mechanism which is far better than Ethereum and that is why it has more transaction speed.
EOS is working on delegate Proof of Stack mechanism, where around 21 block producers will be selected by consensus voting mechanism.
Selection of 21 block producer will be done through the voting mechanism where you and whoever has stacked EOS token is eligible to vote for.
In each voting round, the top 20 will be chosen as 20 block producer and rest 1 will be chosen randomly out of vote they have received during voting.
Confused? Let me make this easy.
If you have stacked EOS token than you are eligible to vote or to chose block producer or could become a Block producer.
Like you, everyone will vote in the voting system and based on the vote received in the voting system everyone will get the position.
So first 20 will be automatically chosen as Block producer however 21st will be random.
Random 21st block producer will be chosen based on the amount he stacked and vote he received.
This explains that in each voting round total of 21 blocks generated.
Hence blocks are solved in batches and every 3 seconds a block will be produced by the delegator.
If delegator is unable to produce block or inactive for 24 hours then he will be kicked out and the backup delegate will be the new producer of the block.
Like Bitcoin or Ethereum where transaction fees are given as a reward to block producer this is not the case with EOS.
In EOS every block producer will get new tokens which will be released automatically by the EOS ecosystem with 5% Inflation rate annually.
Here the classification of the rewards will take place, where 4% will go for a work proposal if anyone wants to improve the EOS ecosystem in the future.
Only 1% is distributed among the block producers, which is further classified among the voters and active block producers.
- Top 21 Block producers will get 0.25% of their block reward.
- All other standby block producers including active Block producers will also get rest 0.75% in reward.
It also makes sure that each block producers will get an efficient payment in return, so he would continue participating in a fair voting system.
This is how the transactions got verified by the delegate 21 block producers and they all maintain integrity by consensus mechanism.
- Every time 21 block producers will be identified as the delegate of the network.
- Selection of the block producers will be done by the owner of the EOS tokens which may be like you or me who have already staked coins.
- The more you stack the more voting power you will have.
- Once transaction initiated all the block producers will take every unconfirmed transaction and create a block and confirm transactions.
- Every Block producer will get EOS tokens in reward instead of transaction fees of the network.
Now talking about the use of EOS token on the network, as we already discussed this earlier.
EOS token will be used to rent the EOS network, so let me explain the whole process step by step.
If you want to build an application or want to use EOS network than you have to stack EOS tokens.
Stacking of EOS tokens directly proportional to the ownership of the network. If you stack more you will have more ownership.
In simple if you stack 5% of total coins you would have 5% ownership of the network.
EOS is kind of blockchain based operating system which has its own servers located on blockchain network.
If you want to reserve any specific RAM or CPU of the server, you would need to stack a specified amount of EOS tokens.
This will make you free from the future price increase issues and will help to plan your budget before using this network.
Now I can consider that with What is EOS you also got an idea of how EOS blockchain network works.
Future and Price Prediction of EOS?
We have already seen, how EOS looks promising projects and the way its revolutionized the blockchain based mining problems.
It has solved, the biggest problems of the blockchain based network scalability issues by increasing the potential of millions of transactions per seconds.
Allowing DApps to built upon it makes this true winner of the race. It stood at number 4 in the current market capitalization.
It has a total supply of 100 Billion coins and a total of 90 Billion is in circulation supply however 10 billion of coins are held by Block.one for future project growth.
The mechanism of EOS network to use is stacking, which creating a scarcity of total supply in the market.
Till date, while checking the stacking pool of EOS around 49% of the total EOS is already been stacked, which has already created scarcity in the market and a lot more is about to come.
While referring below screenshot, we can see approx 49 Billion out of 90 billion current circulation supply is already stacked.
EOS is a fully decentralized network where only 10% of the total token after user feedback locked by the Block.one , so they will have the power to take the decision in the future.
While talking the number of DApps developed on the EOS network is increasing day by day, not only gambling but few social media apps also been developed on the EOS network.
While checking DApps on DAppRader, I have found that more than 350+ applications already built upon EOS blockchain network and counting is on.
Applications such as karma, which is like Facebook social media application which requires multiple transactions to happen per second build upon EOS blockchain network.
From the above screenshot, we can see there are multiple applications from gambling, gaming, and social media industries have started building upon it.
Opportunity is countless on EOS network and they are doing tie up with multiple companies and they have a very strong budget to invest in advertising.
From their official site Block.one they have already explained that approx 1 Billion USD funds will be used in marketing only.
Ability to process millions of transactions per second itself explains how big this platform could be in the future if all goes right with the marketing strategy.
Now coming to the price prediction, well no one can guarantee the future price of any cryptocurrency as it is one of the most volatile industries in the world.
What we can figure out is based on technology, team and its wide adoption in the current market.
I have found a few technical analysis done by the experts.
WalletInvestors considering investment in EOS for the 1-year is under high-risk investment and forecasting price down to 0.282 USD by end 2019, but this is technical analysis not considering other market factors.
SmartEreum is another price prediction technical analysis team and they predict EOS price to $143 in next 5 year and quite optimistic about the adoption of EOS.
Well, this is just a prediction only while EOS was launched in ICO its price was around 0.50$ which at the end of ICO reached to 4.5$ and after launch, it dropped back to 0.5$.
It recovered back from there and currently traded back around 4.20$/EOS token so still, this is a beginning and it is just 1-year-old cryptocurrency.
For your confirmation this token has also reached the max price of 21.48$ back in the year April 2018, this explains how much potential this has to grow in future.
Let me brief you on how to Buy EOS tokens.
How to Buy EOS?
Well, there is no direct way to get EOS in exchange for fiat, you have to find some alternative to buy EOS.
EOS will be purchased by exchanging Ethereum or Bitcoin from the EOS listed exchanges.
I prefer to go for Binance, one of the well establish muti cryptocurrency exchange which offers low transaction fees and different ways to buy EOS.
I am not going to explain here in detail, how to buy EOS on Binance because I have already written an ultimate guide on how to buy on Binance, check that in detail.
Let me brief here.
- If you have Cryptocurrency like Bitcoin or Ethereum than first transfer that to Binance ETH, BTC wallet, how? Check our Binance guide.
- If you do not have BTC or ETH to trade on Binance than buy ETH or BTC using fiat currency like USD/EUR, how? Check our Binance Guide.
Now I can assume that you have ETH/BTC in your Binance wallet. I advise having ETH because of low transfer or transaction fees.
Now Go to ETH market and search for EOS and click to the EOS/ETH pair (If BTC than search in BTC market and search for EOS/BTC).
In the middle of the exchange option to buy EOS will display, place your bid as explained in Binance Exchange guide.
Once successful Buy of the tokens completed than your EOS token will be available in EOS wallet balance of Binance.
An easy and simple way to complete the purchase order of EOS coin using Binance.
My View on EOS and is it really killer?
EOS has solved the biggest problem of scalability and the delegate proof of stacks makes this better than others.
Taking the ownership of the network instead of paying or renting resources makes this different than other blockchain based network and ultimately increasing stacking of coins.
Staking will lock the coins in the wallet and every platform to run will need to maintain that specific token to be stack in return of CPU or RAM ownership.
It will ultimately increase the scarcity of the tokens in the market. If supply decrease and demand increase I am sure you know the law of economics that price will increase.
EOS and TRON are competing with each other in building DApps on their blockchain network.
Justin Sun the founder of TRON has already started marketing strategy at a very huge scale and they have done some strong partnership as well.
However, EOS is still waiting for the right time to scale up their marketing strategy.
If you really like this guide than suggest to look for less than 1$ price Best Altcoins, which are emerging as the future of CryptoCurrencies.
Will EOS really going to kill Ethereum or not that time will tell us but yes for me this project looks futuristic and Should I still buy Ethereum check our guide.
What do you think about EOS, let me know in Comment and if you like this then check others Altcoin too.