What Is EOS?
Let me tell you about EOS—it's a blockchain-based, decentralized platform you can use to develop, host, and run applications for Web3. The native token, EOS, serves for value exchange, buying network bandwidth and storage, and as a speculative investment.
Key Takeaways
EOS functions as a blockchain platform for value exchanges and decentralized app development. It supports secure access, authentication, permissioning, data hosting, usage management, and communication between dApps and the internet. The EOS token is the network's cryptocurrency, and its main competitor is the more established Ethereum blockchain and virtual machine.
History of EOS
EOS was designed by Dan Larimer and Brendan Blumer of Block.one, who released its whitepaper in 2017. In June 2018, after an initial coin offering that raised $4.1 billion in crypto, the EOSIO open-source software launched on the EOSIO mainnet, and 1 billion EOS tokens were distributed.
In August 2021, Yves La Rose founded the EOS Network Foundation, a community of supporters aiming to make EOS more appealing to users and developers while investing in EOS-based projects.
Initially, EOS tokens were granted to Block.one periodically, but investors like La Rose believed the company failed to deliver after neglecting the project. Core developers left Block.one to join the community, and others were reassigned to different projects, indicating Block.one had essentially abandoned it.
Block.one sold 45 million EOS to co-founder Brock Pierce in November 2021, but didn't have 37 million of those tokens at the time—these were to vest over seven years. The community argued the company didn't own them, as rights belonged to block producers until vesting.
After failed negotiations with Block.one and Pierce, the community voted to stop vesting tokens, forked the blockchain, and started developing it independently.
EOS Blockchain
The EOS blockchain is fully compatible with the Ethereum Virtual Machine, so you can use smart contracts to build applications for various functions. You can also create fungible and non-fungible tokens. It uses a delegated proof-of-stake consensus where users delegate their EOS to validators.
Tokenomics
In May 2024, the EOS community voted to update tokenomics for stability, longevity, and growth. The blockchain now limits total tokens to 2.1 billion and starts a four-year halving cycle, halving staking rewards slowly and continuously.
Blockchain Updates
On September 25, 2024, the EOS network switched to the Savanna consensus algorithm. This upgrade includes Boneh–Lynn–Shacham (BLS) signatures, enabling transactions to verify and finalize in about one second, faster than many other blockchains.
EOS vs. Ethereum
EOS shares similarities with Ethereum—you can program smart contracts, create dApps, and use the EOS token for payments, just like on Ethereum.
The EOS Network claims it handles 100 million transactions per day (1,157 per second), with one-second block intervals and average fees of about 0.01 EOS ($0.004786 as of October 12, 2024) per transaction.
Ethereum processes about 12 transactions per second, or 1.01 million per day, with average fees of 6.8 gwei ($0.061 as of October 12, 2024).
Future of EOS
The EOS Network Foundation is actively developing and maintaining the blockchain, but it lags in popularity and use compared to other cryptocurrencies.
Like most blockchain projects, predicting the future is tough as they compete for Web3 developers' attention. These projects aim to shift away from centralized control of data, information, and finances.
Each project seeks a competitive edge by solving others' issues, so if the EOS community makes its network stand out, it could succeed—otherwise, it might fade into obsolescence like many others.
Is EOS Coin a Good Investment?
EOS is the cryptocurrency for the EOS blockchain, still under active development. Whether it's a good investment depends on your view of the project and token, and if others will share that perspective.
Is EOS a Dead Coin?
EOS is still being developed and competes in the evolving market of internet infrastructure. It could attract enough attention to become relevant, but it's equally possible it fades away like other projects.
Is EOS Better Than Ethereum?
It's hard to say definitively. Both aim to be global virtual machines for the next web evolution. Ethereum is more popular with an established user base and many applications. EOS claims faster performance but needs more users and developers to prove it's a viable alternative.
What Is an EOS Token?
The native token of the EOS blockchain is EOS (EOS). You use it to pay for bandwidth and storage, as a payment method, and some treat it as a speculative investment.
The Bottom Line
EOS has potential to compete in the blockchain market, but as of October 2024, it's still nascent. Its promises of speed, app development, reliability, and safety haven't been tested by a large network yet.
Remember, the comments here are for informational purposes only. Check our warranty and liability disclaimer for details. As of writing, I don't own any cryptocurrency.
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