Top 12 Cryptocurrency Coins

EOS cryptocurrency and blockchain

Image 1: EOS cryptocurrency and blockchain.

5. EOS

Founder: Daniel Larimer (Founder of DPoS, Steemit and Bitshares as well)

Mainnet Launched Date: 9 June 2018


Overview

EOS is a cryptocurrency and blockchain that uses Delegated Proof-of-Stake (DPOS) for its consensus protocol to operate as a smart contract platform on a blockchain that provides decentralized applications hosting, smart contract functions and enterprise storage solutions. EOS was designed to solve the common scalability issues encountered by bitcoin and ethereum blockchain. The end goal of EOS cryptocurrency and blockchain is to eliminate all transaction fees for blockchain users.


EOS cryptocurrency transaction

Image 2: EOS cryptocurrency transactions can be completed in seconds.

EOS Native Cryptocurrency Token

The native cryptocurrency token of EOS.IO blockchain is called “EOS”. EOS cryptocurrency provides both bandwidth and storage on the blockchain as a utility token. Users receive bandwidth and storage on the blockchain in proportion to the total number of EOS cryptocurrency tokens that he/she staked. For example, if you own 5% of all EOS cryptocurrency tokens, you will be able to use up to a total of 5% available blockchain bandwidth. Owners can use their EOS cryptocurrency tokens to cast votes and participate in the EOS blockchain on-chain governance, in proportion to the owner's cryptocurrency stake.


Staking EOS Cryptocurrency Tokens

When users staked EOS cryptocurrency tokens to acquire resources on the blockchain, they will not be able to access those staked cryptocurrency tokens until they unstake them. It will take 3 days for the unstaking process to complete before those EOS cryptocurrency tokens will be returned to the unstaked balance of the EOS users.


Staking EOS cryptocurrency

Image 3: Staking EOS cryptocurrency tokens on the blockchain.

EOS Blockchain Resources

Anyone that needs to perform actions on the EOS blockchain will need 3 types of blockchain resources:

 CPU: CPU is the processing power that users can use on the EOS blockchain by staking EOS cryptocurrency token. If users do not have sufficient CPU resources, every action that they perform on the blockchain may take more time to complete.

 NET: NET refers to the network bandwidth of the EOS ecosystem that users can use by staking EOS cryptocurrency token on the blockchain.

 RAM: RAM cannot be acquired through staking and can only be bought with EOS cryptocurrency coins. RAM is used by users to store and record data on the EOS blockchain. When users create new EOS accounts, they should buy some RAM to store information of their accounts, for example, ownership information of other EOS cryptocurrency tokens that belong to the users. For now, around 5k of RAM should be sufficient for an EOS account creation.


Staking EOS cryptocurrency

Image 4: Buying and selling EOS RAM.

EOS Account Creation

In short, it is true that user needs to pay for the creation of a new EOS account. The price of EOS RAM will change from time to time depending on EOS market supply and demand, so we are unable to tell you exactly how much is the RAM cost to create an EOS account. However, the EOS RAM price is very low as of May 2019 and should be negligible to most EOS users.


The EOS Team

EOS blockchain platform uses WebAssembly (Rust, C, C++) for its smart contract language, a portable stack machine currently being developed by private company Block.one (registered in the Cayman Islands). Block.one is led by their CTO, Daniel Larimer who was responsible for the successful development of the Graphene blockchain technology. Daniel Larimer is also the founder of BitShares decentralized cryptocurrency exchange, Delegated Proof-of-Stake (DPOS) consensus protocol and the Steemit social media platform running on STEEM blockchain.


EOS Founder Daniel Larimer

Image 5: Daniel Larimer.

History

EOSIO platform was released by Block.one to the public as an open-source software on 1st June 2018. One billion EOS cryptocurrency tokens were issued out as ERC-20 cryptocurrency tokens to allow everyone globally to launch EOS blockchain and applications. EOS successfully launched Mainnet blockchain to the public on 9 Jun 2018.


EOS DPoS Voting Mechanism

Users that own EOS cryptocurrency tokens have the rights to choose and vote for active delegates or block producers for the EOS blockchain. EOS account holders need to stake their EOS cryptocurrency tokens to be able to vote and they can vote up to 30 EOS block producers with their cryptocurrency tokens at a time.


Blockchain users will not need to pay any fees for staking EOS cryptocurrency tokens and voting for block producers. EOS users will have more blockchain voting power if they staked more EOS cryptocurrency tokens. For example, Tommy has staked 2000 EOS cryptocurrency tokens on the blockchain, he will be able to cast 2000 votes for up to 30 EOS block producers.


Staking EOS cryptocurrency

Image 6: Voting for block producers on the EOS blockchain.

The top 21 block producer candidates that won the most votes will become the core set of block validators for EOS blockchain. The remaining block producers will be compensated by the blockchain network according to their vote ranking and assigned as standby block producers of EOS blockchain.


Primary Responsibilities of EOS Block Producers

The primary responsibilities of EOS block producers is to validate transactions, place them into blocks, sign off, broadcast those news blocks and lastly ensure their nodes are always running. EOS block producers will get paid for producing blocks on the blockchain but will not get paid if they fail to produce block in time. The failed block producer will have its turn skipped and the next block producer will produce the next block.


EOS block producers have no power to modify blockchain transaction details but they can reportedly exclude transactions since they are the core transaction and block validators of the EOS blockchain. This modification will be temporary because other EOS block producers will eventually include those blockchain transactions in the follow block, the voting users can then exercise their power to vote out the dishonest block producer on the EOS blockchain.


Blockchain Democracy

Users are advised to vote for block producers carefully with the best interest for the EOS blockchain network. This will ensure block producers that misbehaved or not doing their job properly will be excluded from blockchain roles. This is why EOS is regarded by many to be the most democratic and least centralized cryptocurrency blockchain in the world since every EOS cryptocurrency owner can exercise an amount of influence on changes for the EOS blockchain.


Competitor of Bitcoin and Ethereum

EOS reached cryptocurrency market cap of more than $5.4 billion USD and a total cryptocurrency coin circulating supply of around 912 million as of 24th May 2019. Some members from the cryptocurrency community touted EOS blockchain platform as the ethereum killer. Although that prediction remains to be seen, EOS blockchain and its cryptocurrency will undoubtedly be a fierce competitor to bitcoin cryptocurrency and ethereum blockchain for many years down the road.


Bitcoin, ethereum and EOS

Image 7: Bitcoin, ethereum and EOS are 3 well known cryptocurrencies.

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