Based on the market capitalization of cryptocurrency, EOS ranks at the ninth place. It has recently reached the valuation of $6 billion with the corresponding price of $8.15. For a cryptocurrency, EOS has reached an impressive feat because the market is currently in a bearish mode. In fact, EOS is proving to be a strong contender for other cryptocurrencies out there because it has shown relative stability through this turbulent period.
EOS was created by Block.One which is a blockchain start-up based on the Cayman Islands. The EOS platform aims to provide a decentralized my contract enabled platform that will make it easier for developers to build their decentralized applications. In fact, many have deemed EOS as a platform that will enable developers to do things they can’t do on the Ethereum platform. This is true to some extent because EOS is offering a fundamental solution is to flaws in issues on the Ethereum blockchain.
EOS is a highly unique cryptocurrency because it utilizes proof of stake which is a technology that uses less energy for mining. On top of that, they are going to be offering the platform with no transaction fees at all. At the moment, there has been an internal audit done on their system which proved that the platform could take up to 1000 transactions per minute. Despite this, the team believes that the platform will be fully ready to take up hundred thousand volumes per second. It also offers a parallel scalability which comes in handy for developers.
The EOS blockchain supports the process of creation verification of several decentralized applications. The proof of stake protocol that the platform adopts will assist in the decentralization of independent organizations. Dan Larimer which is a chief technical officer of EOS has been fully credited as the mastermind behind this concept because he has massive experience with cryptocurrency algorithm. On the EOS software, users can also expect to utilize the new blockchain infrastructure which allows parallel and horizontal scaling. On top of that, EOS also offers users capability to authenticate any use the database to schedule several pounds across the platform. Therefore, the result of EOS is a highly integrated blockchain infrastructure that is useful for developers.
For developers, they may consider EOS as a possible platform for them to develop their ideas and there are no transaction fees, and there is a quick implementation of decentralized applications. Since the creation of Bitcoin back in 2008, this has created opportunities for the blockchain technology to be improved. Therefore, the EOS developers believe that is important to generalize the usage of the technology by diminishing the transaction fees and also providing widescale support throughout the platform.
Despite this, there are still critics that are analysing the potential of EOS within the cryptocurrency space. Therefore, the capabilities of EOS has gained huge attention especially from venture capitalist and large corporations that are interested in the blockchain. In fact, there have been several large-scale partnerships created with EOS which makes it on its way to becoming one of the most powerful blockchain enabled platform.
One of it comes from a cryptocurrency exchange called Bitfinex which recently announced that they would establish a decentralized exchange which will be based on the EOS blockchain. Before you pledge your support for EOS, it is important to understand several key features of the platform.
- It has been accused of centralizing its operations
In the cryptocurrency community, it is important to analyze the developer behind the creation. Underlying the creation of EOS is a man called Dan Larimer. He is one of EOS developing team member and he is popular in the cryptocurrency space, but he has an important point to make. It matters a great deal for cryptocurrency members to know more about an individual will create a cryptocurrency because their vision is reflected in their creation.
When asked to explain more about EOS to the cryptocurrency community, Dan stated that he had no time to explain everything to people who don’t believe in his idea. However, the cryptocurrency community disagrees with the notion brought about by Dan Larimer because the cryptocurrency is all about initial coin offering and creating a community around it. On top of that, EOS is a very new coin any requires the support of the community around to provide feedback and create a solid community for it to grow.
Therefore, cryptocurrency enthusiasts have looked into Dan Larimer’s career very closely and found out that he had two very successful products which are Bitshares and Steemit. In fact, these are his creations before he went on to create EOS. So, people think that Dan brought his capability from his previous creations into EOS because his track record is good. A lot of investors think that Dan can change the cryptocurrency space. However, we may have to think again. In the world of cryptocurrency, it is important that decentralization is a key feature to any coins being released. This is the reason why privacy coins such as Monero and Zcash are gaining mainstream acceptance because it protects the identity of the user’s until the end.
The whole point of the cryptocurrency world is that nobody can gain access information about every other user. The main concern that the cryptocurrency community has about EOS is the fact that it utilizes a proof of stake mechanism. Using this method, it brings the number of nodes which are needed to do calculations to only 21 nodes. Unfortunately, this means that the cryptocurrency could be centralized. For cryptocurrency enthusiast, this is bad news.
Ethereum, which is a strong contender within the cryptocurrency space says that EOS is completely centralized. In a normal cryptocurrency system, the nodes required are infinite, and there is no fixed number. Therefore, it is clear to see that EOS may have some problems there will be upcoming in the future. However, all of this conversation about EOS makes it a much more interesting space for the cryptocurrency community as controversy thrives in the space. Therefore, you need to make your own choice about whether you want to believe in a cryptocurrency that utilizes only and number of nodes compared to others.
- It has brilliant minds in its team
Perhaps one of the greatest supporters of growth in EOS is the fact that it is being spearheaded by a visionary team that has a proven track record of making ideas into execution. For instance, the CEO of EOS which is Brendan Blumer had started selling virtual assets even when he was 15 years old. In fact, he has been actively involved in the blockchain industry for the past four years. As we mentioned earlier, the chief technical officer, Dan Larimer is an experienced blockchain enthusiast that has founded several of his blockchain projects.
- Highly capitalized team
EOS is one of the blockchain projects that is possibly the richest one in the world in terms of funding records. Even before they started out their ICO, they already have a huge amount of fun prepared for an investment. All of the funds that they receive goes back towards progress in the community and the committed $1 billion worth of funds which will be used to support people that develop projects on their ecosystem. On top of that, the fund is managed by a team of venture capitalists in different parts of the world to attract more people to join in the EOS project.
- Strong community
For a cryptocurrency to be successful, it needs to have a strong community built around it. This typically signals an in-depth commitment that is instrumental to the success or failure of the blockchain project. On top of that, EOS already have a strong global community which is pushing for the global adoption of the platform. It is creating hackathons which are hoped to incentivize the growth of the community. At the moment, EOS has about 131,000 active followers on Twitter.
- Can process millions of transactions
On top of having all of these features on their side, an important part of succeeding in the cryptocurrency world is also able to prove the worth of the technology behind a coin. Therefore, EOS excels in this part because they can prove the superiority of their technical features compared to their other rival cryptocurrencies. However, it currently lacks in the smart contracts department. Despite this, EOS remains optimistic that they will be able to process millions of transactions per second. The transaction fees which are being removed is also a huge factor which attracts developers to supporting their platform.