EOS Coin Guide: Full Analysis

/EOS Coin Guide: Full Analysis

EOS; the Blockchain startup promising to beat Ethereum, eliminate fees and offer more.

EOS Coin Guide: Full Analysis 2018-05-24T15:11:25+00:00
EOS Coin Guide: Full Analysis

EOS Coin Review

Quick inner navigation:

  1. What is EOS?
  2. EOS and dApps
  3. EOS ICO
  4. EOS Vs Ethereum
  5. Can EOS Coin be Mined?
  6. How to buy EOS?
  7. EOS wallets

Even though the cryptocurrency hype has gone down a little, these coins are here to stay. With time, the less useful ones will fizzle out and pave way for those that will have an intrinsic value. It is such coins that will completely disrupt the traditional way of doing things. In this article, we take a look at EOS.

What is EOS?

EOS is a decentralized operating system that aims at providing a platform for industrial decentralized applications. This system was developed by Brendon Blumer (Chief Executive Officer) and Dan Larimer (Chief Technology Officer and also the man behind BitShares and steem) which is a controversial programmer accused of abandoning two projects before they got finished. These projects are Bitshares and Steemit. His focus is on innovative technologies like second generation cryptocurrencies and virtual reality simulators. He is behind the technology of EOS. EOS is based in the Cayman Islands, but the company does not have a centralized office. The EOS developers are trying to solve the scalability and the high fee issues that developers have to contend with when creating dApps. It is similar to Ethereum, minus the gas fees and the slow transaction processes.

EOS is a blockchain operating system that transcends the previously known architectural design of the blockchain operating systems by introducing an approach which allows development of high – performance dApp (Decentralized apps) that can be horizontally and vertically scaled. EOS Cryptocurrency operating system provides resources such as databases, ledger accounts, seem less intercommunication and data sharing for development of dApps. The operating system scales and functions using a network of CPU cores of different variations, thereby conferring the ability to process millions of transaction in given seconds at a zero fee rate. 

The system runs on the Ethereum blockchain platform allowing smart contracts and enabling thousands of transactions per second to occur. It will allow user authentication, server hosting, and cloud storage. Let’s look at it in details to see what it has to offer.

EOS will use a Delegated Proof of Stake (DPoW) protocol

DPoW is an altercation of the original proof of work process. In a normal PoW consensus system, everyone with the resource to mine can do so, a DPoW protocol only allows some set of stake-holder elected delegates to perform mining operations, confirm transactions and creation of blocks. These delegates are selected based on their wallet size and mining resources.

EOS makes use of a protocol called Delegated Prove of Work (dPOW) for distribution of blocks and proper representation of every single coin owner. In this system, anyone with tokens on EOS network is entitled to vote for a block producer.

These producers will have the opportunity to produce blocks based on the number of votes they receive. New blocks are produced after every 21 rounds. The first 20 are automatically selected, while the 21st one is selected based on the number of their votes relative to other producers. These producers are then shuffled using a pseudorandom number from the block time to ensure a balance of connectivity among all other producers remains. The protocol is not prone to a fork as the producers have to cooperate rather than compete to find the blocks. This mechanism makes this stem confirm transactions quickly since there is 100% producers’ participation.

EOS Special Features

As we have already established, EOS is an operating system that allows developers to build dApps. It seeks to bring about uniformity and democracy in dApps development and applications. Check out some special features that you can expect from this system. There will be no transaction fees.

Scalability will not be an issue thanks to DPoW. Other altcoins use Proof of Work (PoW) mechanism in which peers have to add blocks on the network for others to confirm. It is hard to produce those blocks but easy to confirm if they adhere to the protocols of the system. It will be easy to upgrade.

What is EOSIO?

The Release of EOSIO dawn 3.0 indicates advancement in blockchain technology. With the release, EOS token would be easily integrated into almost all aspect of life through decentralized apps (dApp). With the release of the platform, most smart contracts have become very simplified and automated. This means anyone with the least or basic knowledge of programming can create a smart contract perfectly using the EOS Platform.

EOS and dApps

To begin with, EOS crypto is a decentralized open source platform that was designed to implement Decentralized apps (dApps) centered on the smart Contract technology. Smart contracts function by allowing individuals exchange and transfer materials in a very transparent but highly secure way, without having to employ the service of a middleman organization. EOS has made it quite possible for developers to overcome most of Etherum shortcomings which are considered the principal DApp development operating system. With EOS server resource, DApp can be developed with more transparency, security and also with zero cost of accessing. One key feature of EOS is its similarity to how the Clouds technology operates.

dApps are decentralized applications. To understand what these applications are, let’s look at some of their features.

  • They are decentralized. All the records of transactions are stored publicly on a ledger that has no central controlling authority.
  • Open source. While anyone can access and make some changes on the network, these changes must be confirmed and approved by others on that network.
  • This is the cryptographic algorithm set by the network that all peers must agree to in order to confirm any transactions.
  • It has to use a digital currency that is native to its blockchain system.
  • There are three types of dApps. Type 1, 2 and 3. Type one uses its own protocol, type 2 uses the protocol of type 1, while type 3 utilizes the protocol of type 2 to create their own protocols.

In this case, EOS operates as two 2 dApp for type 3 dApps. It engages these dApps in the following ways;

  • Provides support for millions of users.
  • Provides a free network in which developers can build these applications.
  • The platform allows developers to upgrade or fix bugs within the network.
  • It provides a low latency allowing apps to run smoothly.
  • Allows parallel performance. This a situation in which workload can be distributed across several processors for faster processing.

The EOS Coin

EOS coins are ERC-20 compatible tokens that are distributed making us of the Ethereum preexisting blockchain. The EOS coin serves as the ticket to making use of the EOS server space for the creation of a smart contract. Instead of being charged a fee for using resources such as storage or bandwidth, a user is allocated all this based on the amount of coin they have. Apart from this, the coins lack any importance on the EOS Platform. The coin is distributed throughout a 355 days period.

1 billion total supply of coin will be distributed following these patterns;

  • 200,000,000 EOS Tokens will be for 5 days starting from June 26, 2017, at 13:00
  • 700,000,000 spread out EOS Tokens distribution will take place, with 2,000,000+ coins getting distributed for 355 days.
  • The leftover 100,000,000 coins belong to the founders, and this can’t be transferred or traded on the Etherum network. The coin grew by about 52% alone in first three weeks of April 2018.

EOS ICO

EOS coin initial coin offering or ICO started on 26th June 2017 and will end on the 3rd of July 2018. The total supply of these tokens is 1 billion EOS. Currently, the ICO has raised $700 million USD and is selling about 2 million tokens a day. The price of a token is determined by market demand. Currently, if you want to buy EOS, you will buy it at $9.81. Its market capitalization currently stands at $6.6 billion in less than a year. This is a circulating supply of 680,831,664 EOS. With the hype about this coin replacing Ethereum as a smart contracts provider, it is set to raise a few more billions before it is officially launched mid this year.

EOS Vs Ethereum

EOS is based on its own blockchain, but its token is based on the Ethereum platform. The EOS tokens are among the most sort after coins on the Ethereum blockchain, and that is why they are considered to be ether’s biggest competitors. EOS is also going to conduct its crowd sale for one full year supporting ether and the Ethereum blockchain throughout that period.

EOS and Ethereum are both networks on which other apps can be built and maintained. They both use the smart contracts technology, allowing as many contracts to be created on their networks.

  • Architectural design and interface

Etherum serves as a neutral structure for the development of dApps without any preexisting or inbuilt feature in place. Developers are being allowed to create their own features and other sub-protocols inside smart contracts. This is to allow a more flexible operation and decrease bloat among applications. EOS, on the other hand, features a lot of options aimed at simplifying the process of dApp development. Rather than having to develop some basic features from scratch, developers can enjoy the implementation features available on the operating system.

  • scalability

In terms of scalability, Etherum networks have recorded up to 25 transactions during a stress test. Various projects are still ongoing to increase this to 50 – 100 transaction per seconds. EOS, on the other hand, has recorded up to 10,000- 100,000 during a stress test and since EOS will be using parallelization for network scaling that number is expected to jump significantly.

  • EOS has a lot more to offer as compared to Ethereum

EOS promises a free network for dApps and faster transactions. It will be easier to upgrade or change the dApps on EOS as compared to Ethereum network. It will be possible to process thousands of transactions per second solving the scalability issue. EOS also allows parallel distribution of workload and sequential performance, it will allow dApps to run smoothly with low latency.

Another contender for the smart contracts creation space is the Stellar. The Coin (XML) has risen to be in the top 10 most traded, and it is showing no sign of slowing down. Steller, unlike EOS or Etherum, is more focused on providing a faster and cheaper decentralized cross-border payments solution. With deals from IBM and other computer giants, the Outlook of this coin seems better than that of EOS. EOS has backing from experts and large organization in the cryptocurrency industry, which has resulted in it contending for the top position.

EOS is expected to significantly grow in 2018 since a lot of major development and news related to it would be released.

EOS Price Growth

EOS was developed late last year and is set to get launched mid this year (2018). In 2017, a token unit retailed at $0.925, which represented just about $629 million in market capitalization. Like all other cryptocurrencies, EOS price is also as volatile appreciating and depreciating rapidly with market demands.

In 2018, the token price rose to a high of 19, capping at more than $9.5 billion. Though there hasn’t been a lot of hype for this coin, it has since seen a gain of about 1300%. Its substantial growth is as a result of its promising features that are set to solve the problems present on the Ethereum blockchain.

Currently, one token of EOS cryptocurrency is trading at about $9.59 and has a market cap of $6.53 billion. If you had bought the EOS token during the ICO for $1000, you would have earned about 1,081 units. These units would now be $10,367, about 937% gain.

The most promising aspect that propels EOS is its scalability, speed and the fact that it will provide its network to dApps for free. These features will draw a lot of investors which is likely to push its price further up. This though is speculative.

There is also the issue of the token sale mechanism. Instead of setting a fixed price and selling all the tokens, the developers adopted a continuous distribution model. In this model, the first 200,000,000 were sold in the first five days and the remaining 800,000,000 distributed over a period of 360 days. The developers plan to release about 2,222,222 per day for the set days.

EOS and Dawn

Dawn 2.0 is the second phase of the EOS network. It is the Minimal Viable Test Network, which aims to show the functionality of various features in this network. These features are:

  • Genesis import testing.
  • P2p network code.
  • Wasm sanitation & CPU sandboxing.
  • Inter-blockchain communication.
  • Resource usage tracking/Rate limiting.

Internal testing on this phase shows that the network can now process a few thousand transactions per second. It takes about 34ms to compile new contracts for the first time.

EOS Dawn 3.0 comes with amazing features.

  • It will reintroduce horizontal scaling of all single chains.
  • It will enable infinite scaling using the inter-blockchain communication

The two functionalities will enable multiple apps to be built on the blockchain and enhance decentralization.

  • It will enable private/public communication. This will be possible with interchain communication. Public and private blockchains will have the ability to communicate directly. Essentially, it will be possible to develop blockchains that can be both public and private. This is currently not possible with the nature of public blockchain.
  • Dawn 3.0 has plans to restore the use of horizontal scaling using about 65,000 different regions. These regions are to have independent memory databases but use the same contract code and accounts. This development will significantly increase the speed of transactions since it will be possible to process a single block producer as a cluster.

Can EOS Coin be Mined?

You cannot mine EOS crypto. The developers released a fixed number of tokens (1 billion) that you can buy every day for 360 days. About 2.2 million tokens are available every day. The price of these tokens is determined by the market. Since the network is based on the Ethereum blockchain, you can buy ether and convert them to EOS using ShapeShift.

How to Buy EOS?

Here is a step by step guide on how to invest in EOS.

Identify a suitable wallet

  • EOS is an ERC-20 token. Identify an ERC-20 compatible wallet such as Jaxx and Exodus and register for an account. You can also use Trezor or Ledger Nano S (in this case, you have to connect the wallet to MyEtherWallet). Jaxx and Exodus have the ShapeShift that allows you to trade cryptocurrencies.
  • You can choose to keep your EOS coins on a web wallet. In this case, the best wallet would be MyEtherWallet. It is an open source wallet that allows you to keep your coins in your own computer rather than in their servers giving more control over your coins.

Choose an Exchange

EOS ERC-20 tokens are available in a variety of exchanges.
Here are a few you can choose to buy your coins from:

Binance >> it is a well-known exchange that supports a lot of digital coins. (You can only fund it using other digital coins, but there is ETH and BTC pairs with EOS).
Kraken >> You can fund your account using fiat currencies like USD, EUR, Canadian dollars and JPY.
Bitfinex >> It has an EOS/USD trading option.
Changelly >> You can fund your account with Bitcoins then trade EOS.
ShapeShift >> this is a feature present in various wallets that allow you to trade cryptocurrencies. You do not need to use any personal details with this exchange. It, however, has high fees.
HitBTC >> this exchange supports various cryptocurrencies. You can fund it with fiat currency like USD or EUR and it’s easy to use, but it has a bad reputation online.

Transfer your Coins to the Wallet you chose

Like all digital coins, don’t leave your EOS in the exchange platform you bought them. They will be safer in a wallet. Simply copy your wallet address and paste it into the exchange platform as a payment option. Follow the simple instructions to transfer the coins to your preferred EOS wallet.

EOS Wallets

Since EOS is an ERS-20 coin, it can be stored in various wallets that are compatible with the ERC20 function. Here are a few of those wallets.

Mist >>

This is the official Ethereum desktop wallet. It was developed by Ethereum developers and thus is not a third-party wallet. It has a friendly and easy to use interface. This wallet features the multi-signature function making it very secure.

Please note that you will be required to download the whole of the Ethereum blockchain (which is almost 1 terabyte) before using this wallet on your desktop. You will, therefore, require a lot of space to use this wallet. This is a disadvantage as most people do not have this space to spare in their personal computers.

MyEtherWallet >>

This is one of the best EOS web wallets and its free. You are completely responsible for your own security as the backend developers cannot access your or recover your keys. They cannot freeze your account so make sure you do not visit any unsecured sites while using your wallet or you may lose all your coins. You cannot also reset your password or reverse completed transactions. This is a client-side interface, open-source wallet.

Jaxx Mobile Wallet >>

This is a multi-currency mobile and desktop wallet. It has the ShapeShift feature that will allow you to trade multiple cryptocurrency pairs. It is compatible with Windows, Apple and Linux operating systems. It can also work on iOS and Android mobile and tablets and is suitable for Firefox and Google Chrome extensions.

Despite its good features, a security bug was reported on June 10, 2017. It is still not clear if Jaxx developers have dealt with this bug. You may want to find out before using it.

Ledger Nano S >>

This is a hardware wallet reputed for its security. You will have to connect it to MyEtherWallet to transfer your coins. It can connect to any USB port and has a nice display that you don’t need a monitor to confirm your transactions. It utilizes a single button tap to ensure that only you can control your coins. Since it is a hardware wallet, it is not possible to lose your coins to hackers online since it stores them offline. Your own your private keys and is also password secure, such that even if it is stolen, your coins remain intact.

Buying EOS

While there are various exchanges from which you can buy EOS coin, we’ve identified a few that we thought are efficient and easy to use earlier in this article. Let’s take an example of Binance and see the procedure you should follow to buy EOS. The process is basically the same on all of them.

  • Set up an EOS wallet and note your password and private key.
  • Note your wallet address. This is the address others are going to use to send you coins.
  • Since Binance does not support fiat currency, buy ether or bitcoin and send to your Binance account.
  • You are now ready to exchange either of the digital currency you have bought for EOS
  • Once you have exchanged either ether or bitcoin with EOS, get the wallet address that you received while setting up a wallet
  • Get into your Binance account and transfer your coins to your wallet. You will paste your wallet address when prompted. The coins will be moved from Binance to your wallet.

Thank you for reading this guide, we hope it was helpful. Make sure to stay tuned.

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