EOS is one of the major cryptocurrencies in terms of market capitalization right now. It is ranked at number 5 in terms of market capitalization on CoinMarketCap at the time of writing. So what is it all about? The answer, scalability, and flexibility. Here is you compact insight into the project.
EOS.IO is basically a blockchain-powered platform which the developers can use to develop and deploy dApps. The platform is created by Block.one, a Cayman Islands Company. The EOS platform is based on smart contracts which the developers can use to define the characteristics of their dApp and can code them in whatever way they want. But blockchain technology has a major issue that it presents forward in the form of scalability. EOS aims to solve this issue for good.
The scalability of the major blockchain networks of the world such as bitcoin and ethereum is very low as compared to the scalability of the currently employed global financial framework such as VISA. VISA is able to process thousands of transactions on its network per second (TPS) but for bitcoin and ethereum, this number hasn’t even crossed 100. If millions of people are to use a dApp built on a decentralized platform, its scalability needs to be in the upper end. EOS focuses exactly on this issue and wants to make its platform suitable for commercial scale decentralized applications. It does so by choosing a different consensus algorithm at its core. Instead of deploying the most commonly used consensus mechanism Proof-of-Work (PoW), EOS uses delegated Proof-of-Stake (DPoS). Owing to this mechanism, the platform claims to be handling much more transactions as compared ethereum and bitcoin.
Delegated Proof-of-Stake (DPos)
EOS uses the Delegated Proof-of-Stake (DPoS) at its core which allows one to create blocks within 0.5 seconds. In order to achieve irresistibility, the platform has also tied asynchronous Byzantine Fault Tolerance (aBFT) along with DPoS. Combined, these frameworks make sure the transaction irreversibility within around one second.
Unlike the traditional PoS, where the token holders vote for the validity of the blocks, the token holders vote for block producers in the DPoS ecosystem. Now, the block producer group that is able to get the largest number of votes decides and organizes the generation of the blocks.
The first step of the BFT-DPoS duo is the selection of the group of block producers. This selection is based on some pre-defined rules. The top 21 block producers are selected through continuous voting done by the EOS token holders.
After the group has been chosen, then comes the aspect of achieving consensus between the block producers. Conflicts are resolved within this group of block producers through voting. Two-thirds (2/3) votes are required in order to get an agreement. This means that 15 block producers need to agree on something in order to call it final. All producers can sign all the blocks. Once a block is signed by a 2/3rd majority of the group (15 votes), it is considered irreversible.
The order of generating blocks is also kept into consideration. All the block producers agree on the order in which the blocks will be generated. In order to generate a block, a block producer in the EOS ecosystem is given 0.5 seconds. If a producer is unable to generate the block in this time, it is skipped. The longest chain in the group is considered valid. If a block producer sees a longer chain than the rest, he switches over to that chain.
Transactions are also validated in the EOS ecosystem. All the transactions include the header hash of the last block in the chain. If that block is not there in the chain, the transactions are considered to be incorrect. More details regarding this can be found here.
Initial Coin Offering (ICO)
EOS collected a large amount of money when it raised its yearlong ICO. It raised staggering $4 billion during its ICO. This funding is enough to kick this project in the mainstream if used properly.
Competition in the blockchain world is rising at a rapid pace. Various dApp development platforms are springing up with each passing day, but EOS has managed to make its place the upper league. The platforms that come in competition with it are Ethereum (one of the biggest platform in the blockchain arena), NEO and Cardano. Let’s see who wins this race of becoming the biggest blockchain development platform in the next few years.
You can read the technical whitepaper linked to the project here.