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Independent British blockchain and crypto news

EOS Our definitive guide to EOS

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CONTENTS

EOS EXPLAINED 3

THE PURPOSE OF EOS TOKENS 4Token – EOS 4

HOW TO BUY EOS 5

EOS TECHNOLOGY AND USE CASES 6What dApps are and how they’re changing ecosystems 7Common factors 7What are smart contracts? 7How does a smart contract work? 8What are the uses of smart contracts? 8Administration 8Healthcare 8The role of EOS as a blockchain protocol 8

THE FUTURE OF EOS 9A new exchange dedicated to EOS 9A EOS hardware wallet for dApps 9

THE GROWTH OF EOS 10

CONCLUSION 11

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The resulting technology is a blockchain architecture that may ultimately scale to millions of transactions per second, eliminates user fees, and allows for quick and easy deployment and maintenance of decentralised applications in the context of a governed blockchain. EOS.IO operates as both a base-layer blockchain and as a smart contract platform. The protocol works like a decentralised operating system, intended for the deployment of industrial-scale decentralised applications through a decentralised autonomous corporation model. The smart contract platform claims to eliminate transaction fees and also conduct millions of transactions per second.

The chosen consensus algorithm is based on DPoS, or Delegated Proof-of-Stake, meaning those who hold tokens on the platform may select block producers through a continuous approval voting system. Anyone may choose to participate in block production and will be given an opportunity to produce blocks, provided they can persuade token holders to vote for them. The EOS.IO consensus algorithm respects Byzantine Fault Tolerance (BFT) by allowing producers to sign all blocks so long as no producer signs two blocks with the same timestamp or the same block height. Once 15 producers have signed a block, the block is deemed irreversible.

EOS EXPLAINEDEOS.IO is a blockchain architecture designed to enable vertical and horizontal scaling of decentralised applications, by creating an operating system-like construct upon which applications can be built. The software provides accounts, authentication, databases, asynchronous communication, and the scheduling of applications across many CPU cores or clusters.

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There are three broad classes of resources that are consumed by applications:�� Bandwidth and log storage (Disk)�� Computation and computational

backlog (CPU)�� State storage (RAM)

The EOS.IO protocol allows each account to consume a percentage of the available capacity proportional to the amount of tokens held in a three-day staking contract. For example, if a blockchain based on EOS.IO is launched, and if an account holds 5% of the total tokens distributable on

that blockchain, then that account has the potential to utilise 5% of the state storage capacity. An additional use case is to give EOS token holders the power to become network validators and to vote for other validators. Currently, there are about 90% of the total EOS supply in circulation:�� Total supply: 1,006,245,120.00 EOS�� Circulating supply: 906,245,118.00

EOS (about 90% of the total supply)EOS tokens are ERC-20 compatible tokens which are distributed on the Ethereum blockchain.

THE PURPOSE OF EOS TOKENS

Purpose of Token TPS Confirmation Time Consensus Protocol

To become a network validator and to vote

for network validators4000 Max 1.5 seconds BFT-DPoS

EOS tokens have the purpose of supporting the EOS.IO blockchain by distributing resources to token holders.

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If you’re familiar with placing buy and sell orders through stock brokers, you can safely assume cryptocurrency exchanges function in a similar, third-party manner to these brokers. Brokers take your desired cryptocurrency price and order quantity, wait for an order to be completed, and then typically collect a percent commission (plus an upfront fee) on your order. Similarly, a cryptocurrency exchange is usually programmed to accept your digital buy and sell orders (along with price and quantity), waits in a similar manner for your order to be triggered (met by a buyer or seller on the other end), completes the trade, and then updates your on-exchange holdings, all without human brokers.

Another of the unique aspects of cryptocurrency exchanges is the ability to exchange one cryptocurrency directly with another. This is something you can’t do with stocks, where you’d need to liquidate shares to fiat money before using those funds to buy new stock shares. Be aware though that you won’t necessarily be able to trade one cryptocurrency with all other cryptocurrencies under the sun. EOS is available on many exchanges, some of which we list below:

�� Binance�� Kraken�� eToro

HOW TO BUY EOSThe easiest way to buy EOS is to purchase the tokens through a cryptocurrency exchange. The most common pairings available to you if you want to trade for EOS are EOS/ SDT, BTC, and ETH. If you want to purchase EOS tokens with fiat cryptocurrency, you’ll need to set up an account on an exchange that supports fiat to crypto conversions.

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The current EOS.IO business model is to create an ecosystem where developers and users are the agents who benefit the most from its technology. There are six main requirements EOS.IO has identified as the main characteristics for any business to correctly leverage blockchain technology:

1. Support millions of users: In most cases, an application may not work unless a critical mass of users is reached, and therefore a platform that can handle very large numbers of users is paramount.

2. Free usage: Application developers need the flexibility to offer users free services; users should not have to pay in order to use the platform or benefit from its services.

3. Easy upgrades and bug recovery: Businesses building blockchain-based applications need the flexibility to enhance their applications with new features. The platform must support software and smart contract upgrades.

4. Low latency: Good user experience demands reliable feedback with a delay of no more than a few seconds.

5. Sequential performance: Most applications need enough sequential performance to handle high volumes. Therefore, any blockchain-based platform should support fast sequential performance.

6. Parallel performance: Divide tasks among nodes/apps, so more data can be processed.

With all of this technology, developers are fully equipped to contribute to the ecosystem. There are three important use cases that developers can work with. These are:

�� DApps: EOS.IO allows developers to easily and quickly build fully decentralised applications which run on top of the EOS.IO blockchain. These DApps can transform how people use the internet, as value can now be transferred between users and DApps.

EOS TECHNOLOGY AND USE CASESAs you may have already guessed, EOS is much more than your typical crypto. It’s built around an entire ecosystem that looks to challenge some of the issues raised by blockchain in the first place. This includes scalability, flexibility and usability.

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�� Smart contracts: Developers can connect DApps with the EOS.IO blockchain through decentralised smart contracts that can virtually do anything, from holding payments and distributing tokens to managing rules for any given DApp.

�� Digital assets exchange: EOS.IO offers the possibility to exchange any decentralised asset created over the EOS.IO blockchain in a simple and easy manner.

Let’s take a closer look at dApps and smart contracts.

What dApps are and how they’re changing ecosystemsdApps (decentralised applications) are applications that run on a peer-to-peer network. They were designed as a type of software that is not controlled by a single entity and that exists on the internet. Many people are familiar with apps that can be downloaded onto a mobile phone or laptop, such as Twitter or Instagram. However, these are all centralised apps, meaning they put data and content into one main entity. These entities are normally things like data banks or servers. However, dApps are not served from one central server. Instead, they run and live on the blockchain

network, meaning they are decentralised.dApps are open source and autonomous, meaning they can only be altered by consensus and there is no single body that holds the majority of tokens on the network. They were created to connect users with one another without the need for a middleman. There is not one universal definition of a dApp, but there are many characteristics that all dApps have in common.

Common factorsAll dApps are open source, allowing them to give users higher transparency than standard centralised apps. Being open source also means they are available for people to see and edit when they like. They also have the unique ability of not having a central point of failure, making them more robust and resilient to online hackers wanting to steal information. dApps have a consensus protocol for transactions, meaning proof-of-value for a decentralised app is essential if it wants to succeed. For this to happen, a dApp needs to deploy an algorithm that can be implemented and used. Examples of these algorithms include proof-of- stake or proof-of-work used by the Ethereum blockchain.

The majority of dApps on the market incentivise users or miners with tokens. These tokens hold value or utility, allowing a user to have access to the software for free or with discounts. This reward system then encourages users to carry on using the dApp of their choice.

What are smart contracts?Smart contracts are the next logical development from blockchain. A contract outlines the terms of an agreement between two parties. A smart contract does the same but is also able to enforce those terms with cryptographic code built into its platform. With a traditional vending machine, you put in money, and you get a snack or a soft drink. With smart contracts, the basic concept is the same, but the possibilities are endless. They are programmable agreements that can take an input of value or data, and produce the outcome that obeys the terms of the contract both sides agreed upon. Instead of going to a lawyer to mediate the purchase and payment of an asset or service, people can lay out the terms of their agreement in a smart contract without relying on a middleman.

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How does a smart contract work? Let’s imagine you’re selling a house, and you’ve found a buyer. Both of you are technologically savvy and don’t want to go through costly middlemen, but you also want to make sure both parties respect the terms of the purchase.You want to receive the money, and your seller wants you to deliver the property deed, so you turn to a smart contract platform. You lay out the terms of your accord: 50 Bitcoins by 1st June or the agreement is void and automatic delivery of the property deed upon payment. Before the agreed date, the seller sends you the agreed amount using the smart contract which then sends him or her the deed. With a smart contract, ownership is undisputed, and clearing and settlement are automated. Traditionally this type of deal would involve some mix of bankers, lawyers and real estate agents but this won’t last much longer. The benefits of smart contracts include:

�� Trust: your documents are encrypted in the ledger where they can’t be damaged or lost.

�� Autonomy: there is no need to rely on the traditional intermediaries.

�� Accuracy: human error is reduced to the point of insignificance, saving you time and money.

�� Backup: your records are backed up in every node of the network.

�� Speed: smart contracts run on code, so you don’t have to spend hours going through endless stacks of paperwork, and everything runs smoothly, efficiently and quickly.

What are the uses of smart contracts?A significant part of the exciting applications of blockchain technology depends on smart contracts. They can replace intermediaries and clunky business processes in many industries, which will ultimately save a lot of people money and time.

AdministrationBusinesses are often encumbered by slow processes where approval from several departments is required before projects can go ahead. These delays result in real costs that have a negative on the company’s bottom line. They can employ the accuracy, speed and security of blockchain technology to streamline their processes and get rid of inefficiencies in their organisation.

HealthcareCompanies in this field rely on databases of patient information which are too restrictive to allow the sharing of potentially life-saving insights across the globe. If health records were stored on a blockchain where an individual’s private key safeguarded their anonymity, that information would be available to hospitals and research institutions everywhere. With sufficient adoption, that same individual could walk into any hospital in the world for treatment, and as they produced their private key, the hospital would have access to their information in a heartbeat.

The role of EOS as a blockchain protocol Industries such as banking, real estate or automotive stand to gain from this technology. Every scenario where contracts exist can be made more efficient by the use of a smart contract. As shared, distributed ledgers of information on top of which contracts can be deployed, these platforms can revolutionise the way organisations operate. EOS gives greater power and creativity opportunity to developers and helps to create an exciting ecosystem.

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A new exchange dedicated to EOSHuobi Pool, Huobi Group’s cryptocurrency mining arm, is set to launch the company’s first exchange, dedicated to EOS.

“As an EOS super node, Huobi Pool has placed its ecological development high on its list of priorities,” says Cao Fei, Huobi Pool’s CEO. “Launching this EOS exchange is simply the next logical step in our support.”

The company says that it has been working closely with the EOS community since its launch. It has, for instance, collaborated with other block producers to build an EOS test chain, the Crypto Kylin Testnet, where EOS-based projects can be tested. And it has developed a voting platform for EOS holders and set up a community to make them more aware of node elections.

A EOS hardware wallet for dAppsCEOS New York are building the world’s first EOS hardware wallet built specifically for using dApps.hardware wallet for dApps. This matches improving activity of dApps on the EOS network. The decentralised gambling website EOSMax has seen over $18 million worth of bets placed since it launched, and had 833 users in just the past 24 hours – according to data from dApp radar. EOSMax is a gambling application where users can play casino games like virtual slot machines and dice games on the blockchain. Of course, as with most blockchain-based games, all results can be verified, and with EOSMax, 100% of all game profit is distributed to holders of the platform’s native MAX token.

Another very popular dApp on the EOS blockchain is EOS Dice. Over the last couple of months, the application has consistently seen over 2,000 daily users and between $5-10 million in transaction volume.

THE FUTURE OF EOS As explained above, EOS blockchain offers some great opportunities to the cryptocurrency community. dApps and smart contracts are both innovative technologies and they are still in their infancy. So, as EOS continues to evolve it may just become a front runner on the market. Below, we take a look at some of the things we can expect in the near future.

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Of these, its panellists, including Genson Glier, CEO and Co-founder of Blocktoke and Sarah Bergstrand, COO of Bitbull Capital, forecast that on average, nearly all coins will increase by 1st March, with the exception of Litecoin (LTC) and Monero (XMR), which are set to experience drops of 8% and 3% respectively. While most coins are expected to experience growth of between 2% to 10%, the one expected to increase the most is Cardano, with a forecast growth of 54%. All coins are predicted to increase by 31st December, with the panellists picking EOS (727%), Binance Coin (459%) and TRON (449%) to rise the most.

THE GROWTH OF EOS Personal finance comparison site finder.com’s Cryptocurrency Predictions Survey has released its 2019 forecasts for the top 10 coins by market cap, as well as the top three trending coins, Monero (XMR), Binance Coin (BNB) and Ethereum Classic (ETC).

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By giving developers a platform for smart contract, decentralised applications, and general innovation, who knows where EOS could end up? Clearly, the market is buying in. So it’s no surprise that you may want to, too. To keep up-to-date with the latest EOS news and developments, make sure you follow Coin Rivet.

CONCLUSION EOS and its ecosystem is certainly one to keep an eye on for the future.

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