Updated: Dec 20, 2019
EOS can be best explained as a blockchain-based decentralized system, which allows the hosting, development, and execution of decentralized applications (Dapps) on its platform. It calls itself one of the most powerful infrastructures currently available for Dapps. EOS is not an official acronym for any large name, and the same simplicity is reflected throughout the framework.
This guide will talk about the reason EOS was designed, makers behind it, the way it works, and the most popular applications.
What is EOS Designed For?
EOS is not the first blockchain-based network allowing the development and execution of Dapps. However, EOS offers two things that the other systems, which Ethereum doesn’t have:
The claim to completely remove the transaction fee, which means developers would be able to build decentralized applications by just owning EOS coins or tokens
The ability to create a network that can easily withstand a million transactions each second.
The reason EOS was designed was to tackle scalable issues with their distributed proof-of-stake consensus mechanism (DPOS). EOS is also designed to be flexible, which is very important after Ethereum’s entire network came to a standstill because of the DAO hack.
Who Is the Team Behind EOS?
The core team behind this state-of-the-art blockchain tech is the organization called “Block.one” based out of the Cayman Islands. The CEO, Brendon Blumer, has been a big name in the blockchain industry since 2014. He has previously been involved with companies dealing in currency exchanges, in real estate and MMORPGs.
The CTO of Block. one, Dan Larimer, is the well-known creator of decentralized autonomous organizations (DAOs) and delegated proof-of-stake. He is also the man behind Steem and BitShares.
How Does EOS Work?
EOS works on Delegated Proof of Stake (DPOS), which makes the entire mining network virtual, and replaces traditional miners with validators. EOS has a native cryptocurrency, like most blockchains, simply called the EOS. You can easily send, hold and receive funds between individual wallets, like with any other cryptocurrency.
However, the primary functioning of EOS is to provide a platform where Dapps can be developed and executed. Unlike Bitcoin, which works on a proof-of-work system, involving miners to solve cryptographic puzzles to mine a “block”, DPOS used by EOS works in the following way:
The validators (miners) lock up some coins as stake
They begin validating by placing bets on those blocks they think are credible and should be added to the chain
The validators get awarded proportionately to their bets when individual blocks get appended
There is no fork or competition involved in the structured DPOS system. Miners or validators are required to cooperate for validating each transaction and have the block appended to the chain, instead of competing with each other on it. In case there is a fork, the consensus shall automatically switch over to the longest blockchain.
What are Current and Future Applications of EOS?
A total of 323 Dapps have been launched using the EOS decentralized platform. The Dapps are versatile and have a broad range, falling into the category of online multiplayer games, social media, advertising platforms, micro-blogging, and other miscellaneous applications.
There is no denying the fact that EOS is one of the most popular blockchain platforms. Out of all the existing decentralized applications on EOS, almost 55% have at least one active user at any given point.
The top two EOS Dapps ranked by volume and number of users include EOS Knights and EOS Dynasty, both of which are games. This is followed by Newdex at #3 (an exchange) and Lumeos at #4 (a social polling app).
Recently, EOS partnered with various other tools that enable the possibility of browsing blockchain content on a low level. Some of the most used partners include:
EOS Tracker, which allows real-time viewing of EOS blockchain
EOSBlock is another real-time viewer for the EOS blockchain
EOSweb allows a user to explore the EOS blockchain for transactions, accounts, addresses, actions, prices, tokens and much more
Cypherblock is the next generation toolkit/block explorer for EOS, which focuses more on the EOSIO user-experience
The EOS token has been doing much better than expected. However, it is trying to compete in the Dapp platform space with Ethereum. The network has always had a very strong team and advanced technology behind it. There is a strong likelihood for EOS to do something special soon.
Already, several companies have migrated from Ethereum to the EOSIO network due to scalability issues. EOSIO is an out-of-the-box, well-rounded solution where all transactions are free. This is because the native EOS utility token, instead of being mined, is traded for resources (such as storage and bandwidth) and to pay transaction fees.