EOS.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. 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.
|Purpose of Token||TPS||Confirmation Time||Consensus Protocol|
|To become a network validator and to vote for network validators||4,000||1.5 seconds||DPoS|
Token – EOS
EOS tokens have the purpose of supporting the EOS.IO blockchain by distributing resources to token holders. 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)
- 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
- 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
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:
- 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.
- 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.
- 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.
- Low latency: Good user experience demands reliable feedback with a delay of no more than a few seconds.
- Sequential performance: Most applications need enough sequential performance to handle high volumes. Therefore, any blockchain-based platform should support fast sequential performance.
- Parallel performance: Divide tasks among nodes/apps, so more data can be processed.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.