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85. EOS (Published: 29th Dec, 2017)

The EOS.IO software introduces a new blockchain architecture designed to enable vertical and horizontal scaling of decentralized applications. It claims to be the most powerful infrastructure for decentralized applications. This is achieved by creating an operating system-like construct upon which applications can be built.

Since a lot of blockchain platforms have struggled to support functional decentralized applications, application specific blockchains have become heavily used blockchains with many daily active users, and these platforms are burdened by large fees and limited computational capacity that prevent widespread blockchain adoption. For EOS tokens, they are ERC-20 compatible tokens distributed on the Ethereum blockchain pursuant to a related ERC-20 smart contract (the “EOS Tokens”). EOS.IO is a blockchain architecture that scales to millions of transactions per second, eliminates user fees, and allows for quick and easy deployment of decentralized applications, but it will not configure and/or launch any public blockchain platform adopting the open source EOS.IO Software (the “EOS Platform”).

EOS is mainly formed by two teams, and ii5. Brendan Blumer, the founder of both and ii5, is an American technology entrepreneur living in Hong Kong., is building their first product, the EOS.IO Software. With employees and advisors based around the world, the company focuses on business-grade technology solutions, including blockchain software development.

The EOS.IO Software will be released under open source software license at the end of its development stage. The earliest history of EOS dated back in the Summer 2017, the project of Minimal Viable Testing Environment was held successfully to establish the APIs that developers would require to start building and testing applications on EOS.IO.

There are three major features. Firstly, it is scalable. It supports thousands of commercial scale DApps. It also features parallel execution and asynchronous communication. The permission evaluation process is “read-only” and changes to permissions made by transactions do not take effect until the end of a block. This means that all keys and permission evaluation for all transactions can be executed in parallel. It separates authentication from execution in order to maximise parallelisation opportunities and minimise the computational debt associated with regenerating application state from the transaction log. It separates validation logic into three sections: start with validating that a message is internally consistent, then validating that all preconditions are valid; and afterwards modifying the application state.

The second feature is the high flexibility. It can freeze and fix broken applications. The block producers on all blockchains can select which transactions are included in blocks which gives them the ability to freeze accounts. And it generalised role-based permissions. This enables tools to be developed to manage permissions in a general purpose manner and also provide significant opportunities for performance optimisation.

Moreover, it is user-friendly. Web Toolkit is used for the interface development. Self describing interfaces and database schemes are adopted.Declarative permission scheme provided gives accounts fine grained and high level control over who can do what and when. In addition, EOS will allow people to register a username. Users are able to blog, trade, communicate and use any dApp by their own usernames, but not long crypto addresses. This will make things more user-friendly.

Future Development
EOS Dawn 3.0 will re-introduce horizontal scaling of single chains and infinite scaling via secure inter-blockchain communication in 2018. It will be the first proof-of-stake protocol with support for light client validation. More importantly, it will be the only one capable of generating proof-of-completeness. Furthermore, some changes have been implemented to the underlying DPOS framework to support 500ms blocks (2 blocks every second). This change will dramatically increase the responsiveness of decentralized applications.

The idea of EOS is to create a blockchain platform with numerous advantages, such as eliminating the user fees, low latency and parallel performance. Although the concept is not very revolutionary indeed, and it is not a world changing technology, the main point is to enhance the users’ experience of using blockchain platform. Meanwhile, there are constant improvements in EOS updates, they keep improving and following the pace, more and more new users will be brought into crypto. However, there is one prominent thing to be reminded. Majority of trading volumes of EOS comes from only one exchange, Bithumb, trading EOS/KRW. And there are tighter regulations for cryptocurrency exchanges in Korea recently. In conclusion, we do not recommend to invest in EOS under the current circumstances.

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