Everything you need to know about the cryptocurrency EOS, a blockchain-based development platform designed for building decentralized applications.
Learn more: https://crushcrypto.com/eos-analysis/
Project website: https://eos.io/
White paper: https://github.com/EOSIO/Documentation/blob/master/TechnicalWhitePaper.md
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What is EOS?
EOS is a blockchain-based development platform designed for building decentralized applications (dApps). Developers can write and deploy smart contracts that power dApps and decentralized autonomous organizations (DAOs).
The platform has a native token with the ticker EOS. EOS tokens were first released as an ERC20 token on the Ethereum blockchain, but a main-net token swap occurred after EOS Version 1.0 was deployed in June 2018.
- EOS has a huge war chest to fund dApps to build on the network. It was announced that EOS VC has $1 billion, although the number should be lower now that EOS price has dropped substantially.
- EOS uses the WASM virtual machine, which supports different popular programming languages like C, C++, and Rust. This makes it easier for developers to build on the platform.
- The DPoS consensus mechanism used by EOS enables a high transaction throughput, meaning users can see their transaction confirmed almost instantly. It is significantly quicker than most decentralized proof-of-work blockchains and allows for scalable use of dApps.
- EOS has flexibility in the sense that one bug in a dApp will not render it useless or impact the health of the network. The 21 block validators can freeze the application and allow developers to fix any issues before it goes live again.
- Developers must stake EOS tokens to pay for storage, bandwidth, and computational costs associated with smart contracts/dApps, and receive the tokens back if they take the dApp down.
- With transactions being free, users can easily spam the network without much cost.
- It is not easy to create an EOS account to use the token and it requires a fee. This creates friction in user adoption.
- The number of Block Producers for EOS is relatively low at 21. This leads to a considerable amount of centralization, with each block producer holding a significant amount of influence over the network. EOS cannot compare to the level of decentralization associated with other blockchains like Bitcoin or Ethereum.
- The governance of EOS heavily relies on voting but the participation rate among token holders is low, which may lead to ineffective governance.
- The Huobi voting collusion scandal highlights the weakness of a DPoS system.
- Dan Larimer has a tendency to leave current projects and move onto the next one. Steemit, one of Dan’s previous projects, recently announced that it would lay off 70% of its staff.
- Block.one claims the EOS network is flexible in the sense that faulty dApps can be frozen while the bugs are fixed. However, this same power allows for the Block Producers to reverse transactions that have been previously confirmed.
- Essentially any holder of EOS who has not made a transaction within 3 years can have their tokens taken away. This signals more centralization and sets a dangerous precedent.
- The defining feature of success for smart contract platforms like EOS is building a strong developer community. In this respect, EOS is significantly behind Ethereum and other platforms and will have to recruit and retain blockchain developer talent to catch up to or surpass Ethereum.
The information in this video is for educational purposes only and is not investment advice. Please do your own research before making any investment decisions. Cryptocurrency investments are volatile and high risk in nature. Don't invest more than what you can afford to lose. Crush Crypto makes no representations, warranties, or assurances as to the accuracy, currency or completeness of the content contained in this video or any sites linked to or from this video.