Crypto tokens, such as Bitcoin, are well-known. They are used to make transactions. But, there are other tokens that can be used to make up an entire blockchain platform. EOSIO is one such platform with a greater purpose. EOSIO was launched in 2018 and is a blockchain-based platform that allows for the development, hosting, and maintenance of dApps. EOSIO is the platform for development and EOS is its native token.
How does EOS work?
Developers can create dApps that look similar to web apps using the platform. It mimics the characteristics of physical computers. These concepts are then used by the software to regulate traffic on a network.
These characteristics include bandwidth, computing power, memory and other parameters. Apps require these resources to function. Developers must purchase more EOS resources. This allows users to use the app without having to pay for transactions. Developers will need to purchase more network resources in order to allow transactions.
EOS uses proof of work, not Bitcoin, to verify blocks. EOS recognizes that proof of work can slow down dApps and make them inefficient. They instead use a system called Delegated Proof of Stake. Every EOS holder is entitled to vote under this system. These rights are used to elect representatives who validate new blocks and add them onto the blockchain.
The community also determines the validation rewards. The community elects the block producers or validators to publish the expected number of tokens that they will receive for adding blocks. The median value of all block producers is used to determine the reward. The maximum increase in block rewards must not exceed 5% per year to prevent abuse of the system.
EOS: Advantages and Disadvantages
EOS has many benefits
Zero Transaction Fees
EOS transactions do not affect your account balance. The platform does not charge transaction fees or gas fees, which allows dApps work seamlessly.
EOS staking can be used to send any transaction over the EOS network. These staked tokens give you access to a portion of the network’s resources. You can send more transactions if you have more resources.
Scalability
Your dApp should always be available, as a developer. EOSIO lets you develop and expand your app for as many users or as you need. Your staked tokens determine the network resources you have available. You can stake more EOS to increase your bandwidth.
This platform offers more transactions per second that many popular crypto platforms.
Security
EOS dApps can be frozen by block producers. Any issue in a dApp that is deployed on blockchains could have serious consequences for the entire network. This could even enable hackers to steal funds from your network. EOS prevents hackers from stealing funds by freezing the faulty dApps while the problem is fixed.
EOS Concept of Accounts & Wallets
EOS allows for different accounts and wallets. A public and private key are linked to an account on the EOS network. These accounts can be controlled multiple times depending on permissions. It is granted two permissions, active and owner.
For daily operations on the Blockchain, active permissions are required. These permissions allow you to vote on network decisions and transfer funds. Owner permissions, on the other hand determine who is the account holder. Owner permissions allow you to perform all active permission tasks. However, they also have additional functionality such as changing the owner or active permissions.
Learn more: What are Blockchain Layers?
Your wallet is used to store your public and private keys to access your account. Except for the keys contained within your wallet, there is no link between your wallet and your account.
Is EOS A Good Investment?
EOS has gained a lot in popularity over the past few years. EOS offers powerful development tools that allow you to create dApps that are seamless, scalable, and fast. EOS allows you to develop unique solutions for logistics and social impact issues.
Due to the governance process, many have doubted the platform. New policies are being developed to address these areas. But, collusion and centralisation remain threats to our system today.
EOS can only be a great investment opportunity once these major concerns are resolved. EOS token investing comes with major limitations. You must decide how important you place decentralization on the platform.
EOS currently trades at $1.54 per token, with a market capital of $1.53 trillion. In April 2018, it reached its all-time peak of $22.89
What is EOS? ZebPay.
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