As blockchain technology continues to witness massive adoption, several crypto projects have been launched to solve various problems. Among the projects is EOS. In this article, we will explore the EOS ecosystem. Keep reading to understand EOS’ features, its feeless structure, and governance.
Exploring EOS
Previously called EOSIO, EOS is a leading layer-1 blockchain that supports the development of user-friendly and scalable decentralized apps. EOS is one of the few networks that support gasless transactions.
The blockchain was launched in 2018 by crypto gurus Brendan Blumer and Dan Larimer. Before its launch, the team behind EOS had raised over $4 billion through an initial coin offering. To date, EOS’s native token remains to be the biggest ICO in crypto history.
Apps built on EOS can now be moved to Ethereum, thanks to the recently launched EOS EVM functionality, which facilitates interoperability.
How EOS Works
As mentioned, EOS makes the development of user-friendly and scalable decentralized apps possible. Here are some of the features that make EOS a go-to blockchain for many Web3 developers.
A WebAssembly C++ Engine
To allow developers to create fast apps, EOS adopts WebAssembly technology, which enables apps to be built using C++, a well-known programming language.
Scalability
One of the biggest challenges in the blockchain industry is scalability. Most networks process transactions at considerably low speeds. Ethereum, for example, handles just 20 transactions per second. EOS is addressing this issue using DPOS (delegated proof-of-stake). This consensus mechanism enables the blockchain to process over a million transactions per second.
With DPoS, parties allowed to verify transactions (block producers) on EOS are selected through voting by EOS token holders. The voters pick block producers they believe can approve transactions quickly.
Here is How DPoS Functions on the EOS network:
Block producers– Only 21 block producers can take part in validating transactions on EOS.
Transaction Validation – When one block producer validates a certain package of transactions, the other 20 verify it.
Reward system – Any block producer who successfully validates a block of transactions receives the EOS tokens.
User oversight – Voters can vote to remove a block producer from EOS if they are unsatisfied with their performance.
EOS Governance
Through EOS DAO (decentralized autonomous organization), anyone holding EOS tokens can participate in the governance of the blockchain. The power that your vote carries depends on the number of tokens you hold.
What is Special About EOS?
Here are some elements that make EOS special:
Gasless transactions – Unlike on other blockchains, you don’t incur transaction costs while transacting on EOS.
Scalability – As mentioned, EOS has the capability to process more than one million transactions per second, thus significantly reducing transaction time.
Advanced security features – EOS adopts permissioned private keys that come with restricted capabilities. For instance, the keys can post messages but don’t have the ability to send crypto assets, thus boosting the security of the EOS ecosystem.
EVM integration – As stated, EOS EVM allows Web3 developers to transfer their apps from EOS to Ethereum and vice versa without making any adjustments to the apps.
The EOS Token
The EOS token powers the EOS ecosystem. It is used for staking and in the governance process. The crypto asset doesn’t come with a supply cap. As of this writing, there are over 1.14 billion EOS tokens in circulation.
EOS as a Utility Token
Value exchange – You can use EOS tokens to buy products on EOS-based decentralized apps.
DeFi engagement – EOS holders are allowed to participate in the DeFi (decentralized finance) space. They can use the token to lend, borrow, and farm yield.
NFT marketplace – NFTs listed on EOS-based trading platforms are priced in EOS. Thus, the token facilitates the buying and selling of unique digital assets.
EOS Price Prediction
Based on price predictions from various crypto analysts, EOS’s value could reach $2 in 2024 and then shoot to $10 by 2030. It is worth mentioning that these predictions may not always be accurate. So, consider doing your own research before investing in EOS.
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