EOS is a decentralized operating system based on blockchain technology. The protocol is developed by block.one. EOS is designed to support commercial-scale decentralized applications through a decentralized autonomous corporation model. The operating system allows the developers to focus on their particular business logic by provides all the necessary core functionalities of computer software including databases, scheduling, accounts with permissions, authentication, and handling communication between the application and the internet. EOS.IO is a blockchain software, powered by EOS, that allows the users (businesses) to build blockchain applications that resembles web-based applications by using the architects that resembles website frameworks.
EOS has two unique features that forms its strengths: elimination of transaction cost and scalability. EOS can process millions of transactions in a second with asynchronous communication and parallel processing. EOS also eliminates transaction fees through ownership model in which users own and are allowed to use resources that are proportional to their stake instead of paying for every transaction. These features enable EOS to bridge some of the two major gaps in the cryptocurrency world: high transaction cost and slow rate of processing transaction (the primary weaknesses of Ethereum). These features make EOS one of the best blockchain development solutions. However, since EOS has not been fully implemented (still largely conceptual), it is still being conducted on Ethereum.
The ownership model of EOS provides d’App developers with predetermined costs hence requiring the developers to retain a given level of stake that allows them to adopt freemium pricing model for the applications. EOS token holders will be allowed to rent or delegate their shares of resources for other developers. Thus, the ownership model ties the value of EOS tokens to the supply and demand of storage and bandwidth storage. Another significant strength of EOS is that it provides the ability to fix bugs and rollback changes with supermajority consensus rather than calling for a hard-fork for the same. This feature is supported by EOS’s use of delegated-proof-of-stake. In this system, the network nominates multiple witness nodes (representatives) to involve in making high-level decisions quickly without pooling the entire network. This feature makes the blockchain less decentralized, however, it contributes to the ability of the mainstream enterprises so as to adopt and interact with blockchain technology.
A Brief History of EOS
EOS.IO was introduced in 2017 based on the white paper that was published in the same year. The EOS.IO was established by a private company called block.one. The platform was launched as an open-source software on June 1, 2018 to ensure a widespread distribution of the native cryptocurrency at the launch of blockchain. Around one billion tokens were distributed as ERC-20 tokens by block.one during this time. The extensive distribution of the tokens would help the EOSIO blockchain to raise approximately $1 billion. Ultimately, block.one raised over $4 billion to support the blockchain during the Initial Coin Offering (ICO) period.
The initial test net, Dawn 1.0, was released on September 3, 2017. Test net versions Dawn 2.0 was released on December 4, 2017 followed by Dawn 3.0 on January 25,2018 and Dawn 4.0 on May 7, 2018. Finally, EOSIO’s Dawn 1.0 was launched on June 1, 2018 on the EOSIO mainnet and its latest version in 1.1.4
The management EOS team
Brendan Blumer is the founder and chief executive officer of Block.one. Blumer is a 31-years old American tech entrepreneur. He is currently based in Asia where he has been working on blockchain technology since 2014. At the age of 15, Blumer launched his first venture, GaMeCLiFF in which he used to sell virtual assets inside massively multiplayer online role-plying games (MMORPGs). In 2005, he sold the venture to Internet Gaming Entertainment (Currently known as IMI Exchange). This deal saw him relocate to Hong Kong.
In 2007, Blumer lunched Accounts.net selling in-game avatars and attaining monthly revenues of over $1 billion. He also launched Okay.com, an enterprise data sharing platform for real estate brokers in Asia. In January 2013, Blumer founded ii5 aiming to attract tech talent from Silicon Valley and the rest of the world to create a competitive technology for the Asian technology industry. The company also provides capital investment for both new and existing companies in Hong Kong.
In 2016, Blumer partnered with Dan Larimer who became the company’s chief technical officer (CTO). Larimer is also a co-founder of other crypto-companies including Bitshare and Steemit, a blog and social network in which users can be rewarded with steemcrypto tokens as a way of appreciating them for posting contents. Blumer and Larimer aims at developing the EOS.IO blockchain platform to pose a serious challenge other crypto companies such as Ethereum.
Ian Grigg is another crucial human resource in the company’s development. Grigg is an advisor to the company. He is a financial cryptographer who has involved in developing cryptographic ledger for over 20 years. He is also the inventor of Triple-Entry Accounting.
EOS Technical Description
EOS.IO platform is designed with a primary aim of providing decentralized application hosting, smart contract capability and decentralized storage of enterprise solutions capable of solving the issue of scalability in blockchains such as Bitcoin and Ethereum. Another primary aim of the platform is eliminating all the transaction costs to the users. To realize these goals, EOSIO is designed to be both multi-threaded – being able to run multiple computer cores, and to use delegated proof-of-stake to conduct consensus protocol. The company is aiming to be the first decentralize operating system (EOSIO) that is capable of providing a development environment for decentralized applications such as Steemit.
EOS is the main native token, which is a utility token that provides both bandwidth and storage on the blockchain in as ratio of the total stake, for instance, owning 1% of the EOS grants the user an access of up to 1% of the total available bandwidth. Owning EOS tokens also allows the owner to participate in the one-chain governance of the blockchain that allows the owner to cast votes during decision making. The power in the governance council is also influenced by the proportion to the owner’s stake. The EOSIO platform is expected to vote for 21 block producers at the time of its launch. These producers are tasked with generating and validating blocks within a block time of 500ms. The general purpose and smart contract language that the producers are expected to build include WebAssembly (Rust, C, C++) which is a portable stack that is developed by World Wide Web Consortium.
The EOSIO software allows the users to create accounts and reference them by unique human-readable names. The names must have a length of more than 12 characters in length. To create the account, the user must preserve the required RAM to store the new account until the new account stakes tokens to purchase its RAM.
EOSIO uses free-market approach to allocate the scarce resources to their primary purpose. In this system, the EOSIO system contract enables the users to trade RAM within the system, that is, buying RAM from the system and selling RAM back to the system to acquire the blockchain native tokens such as EOS. Such trade provides liquidity within the system as well as facilitate the price discovery. For instance, the less the available located RAM to the market, the higher the prices of the remaining RAM as set by the market marker.
The market marker uses an algorithm known as a Bancor Relay. This algorithm does not seek to set the prices of the RAM but rather to trade on (buy and sell) the previously established rates. Bancor Relay traders will buy or sell RAM anytime the current market rate is different from the current price offered by the Bancor Relay. The company has proposed EOS Resource Renting and Rent Distribution to lower the capital costs of using network and CPU resources on EOSIO based blockchains.
EOS is designed to operate on a proposed decentralized file system (storage) that will give every user the ability to permanently store and host files. The files are accessible to any web browser. The users will be able to access the storage system without any upfront or ongoing fees for both storage and bandwidth. The users may also sell the tokens when the storage and bandwidth is no longer needed. The suggested storage system will be built on both the InterPlanetary File System (IPFS) and the EOS software. Therefore, the storage system services will be provided by the block producers for the use by those who hold tokens on a blockchain that adopt the EOS.IO software. The block producers will be required to replicate and host the files so that anyone with an Internet browser to access them anytime. The EOS.IO storage block will enable the producers to provide high bandwidth serving of music, images, and videos. By taking this line, EOS.IO would be competing with other products such as Amazon’s AWS. The difference, however, is that EOS.IO product would be utilizing ownership instead of subscription model.
Everipedia is a for-profit wiki-based online encyclopedia. Everipedia announced plans using EOS blockchain technology. It works on an airdrop of a cryptocurrency known as IQ to encourage generating information. The IQ tokens will be exchangeable for Bitcoin. This company is intended to prevent other countries from blocking the content generated in the system by integration of blockchain model. Countries such as Iran and Turkey that blocks wiki contents will not be able to block the Everipedia once it is decentralized and hosted on the EOSIO platform. Serious investors have shown great interest on Everipedia. For instance, Mike Novogratz, CEO of Galaxy Investment LP – a cryptocurrency investment firm, and block.one led a group of investors that invested over $30 million in Everipedia on February 8, 2018. Novogratz also funds EOSIO Ecosystem. For example, he initiated aa $325 million joint venture between his Galaxy Digital LP and block.one.
Frequently Asked Questions
1. What is EOS.IO software?
EOS.IO is software that introduces a blockchain architecture designed to allow vertical and horizontal scaling of decentralized applications, that is ‘EOSIO software’. The application can be built on an operation system-like construct. The software provides accounts, databases, authentication, asynchronous communication and scheduling of applications across a great number of CPU cores and clusters. These processes result into a blockchain architecture that is capable of scaling millions of transactions per second, eliminating user fees and allowing quick and easy deployment of decentralized applications (Check cryptorated.com for more).
2. What does EOS aim to achieve?
EOS.IO software aims to provide a decentralized operating system that can support thousands of industrial-scale d’Apps by enabling both vertical and horizontal scaling. The software also aims at eliminating transaction costs.
3. Which Company is building the EOS Software?
EOS Software is being built by block.one, a company based on Cayman Islands. The company uses employees and advisors across the world. The company is focusing on business-grade technology solutions such as block chain software development (see block.one)
4. Who are the key team figures behind EOS?
• CEO Brendan Blumer – The founder of Hon Kong based okay.com and ii5. Blumer has been in the blockchain industry since 2014. He started selling virtual assets for online video gaming at the age of 15.
• CTO Dan Larimer – the visionary industry leader who developed Bitshare, Steemit, and Graphene. Larimer is also behind the Decentralised Autonomous Organization Concept as well as the increasing popular Proof of Stake Governance.
• Consultant Ian Grigg – Financial cryptographer who has been building cryptographic ledger for over 24 years. He is the inventor of the Ricardian Contract as well as Triple-Entry Accounting.
(For more information check: The Richest People In Cryptocurrency)
5. Is the EOSIO Software operating under open-source software license?
Yes, block.one developed the EOS.IO software under an open-source MIT software license.
6. What are EOS tokens?
EOS tokens are ECR-20 compatible tokens that are distributed on blockchain and Ethereum to a related ERC-20 smart contract.
7. What are the attributes or use of EOS Tokens? Can the EOS Tokens be used on a blockchain adopting the EOS.IO Software?
Despite building the EOS.IO Software, block.one will not launch or configure any blockchain platform that will adopt the open source EOS.IO Software. Members of the EOS community would be allowed to launch their EOS platforms and have a full control over them. For example, they may launch, modify, or delete their platforms for the EOS.IO Software.
EOS Tokens do not hold rights, functionalities, purposes, uses either implied or express, on the EOS platform.
8. How can I participate in the EOS Distribution?
The deadline for participation in the Token Distribution was June 1, 2018. One cannot currently participate in the EOS Distribution.
9. How was the EOS Token Distribution Conducted?
The EOS Token distribution process began on June 26, 2017 at 1300 UTC and ran for a period of 341 days. A total of one billion EOS Tokens were distributed according to the following schedule:
• The first period: 20% of the EOS Tokens to be distributed were distributed within the 5-day period beginning June 26, 2017 to July 1, 2017 at 12:59:59
• 70% of the total EOS Tokens were split into 350 consecutive 23-hour periods of two million EOS Tokens starting July 1, 2017 at 13:00:00 UTC.
• 10% of the EOS Tokens were reserved for block.one and cannot be traded or transferred to Ethereum network.
At the end of the 5-days and 23-hour period deadlines discussed above, the respective number of EOS Tokens that were set forth were distributed among the authorized purchasers.
10. When will I receive native cryptographic tokens on the EOS Platform?
The community may choose to launch one or more networks based on EOSIO Software and purpose each as an EOS.IO Platform. The EOS.IO is built in a manner that a proposed EOS.IO Platform that adopts the EOS.IO Software will call for approval from the holders not less than 15% of the total issued and outstanding EOS Token before tokens on such a blackchain can be transferred. Generally, if the EOS.IO Software is adopted, it is the responsibility of holders holding at least 15% of the native EOS Tokens to adopt one or more blackchains so that blockchain Tokens received on such blockchains to be transferable. Blonk.one will not configure or launch any of the initial EOS.IO-based Platforms, it will not have control over when, how, or whether the software is adopted or implemented, or how and/or EOS.IO Software is lunched with local tokens. As a result, one should not expect and they are guaranteed to receive any other cryptographic tokens or digital assets now or in future.
11. How can I participate in the EOS Token distribution?
Participating in the EOS Token distribution requires one to have an Ethereum compatible wallet or an application with private keys. Private keys will enable the user to interact correctly with smart contract functions such as transferring cryptographic tokens.
Network and/or wallet DAPPs are independently run by the community. You can do your own community research do identify the most suitable network for you.
You need to beware of applications requesting your private keys since some of them may be scammer who wants to steal your key and illegally access your account.
12. What is the minimum purchase for EOS Tokens?
The minimum contribution accepted during any period of the EOS Token distribution is 0.01 ETH. Anything less than that will rejected.
13. Can I launch a blockchain myself using the EOSIO Software?
Yes, you can build your own blockchain derived from the EOS.IO software by acquiring the company’s respiratory and customizing it for their use for free. The customization may include configuring token supply, default seed nodes, initial distribution, and token symbols.
14. Do block.one provide support to those who would wish to launch a blockchain using the EOS.IO software?
Block.one cannot offer free support to all the potential chains that may be launched or even take responsibility for problems that may emerge during the launching and operation process such as bugs or unapplied patches. Any community-driven chain is a service offered by community members to other community members and block.one has no responsibility for it. However, bock.one may provide support services for free to enterprises and individuals who require development and figuration assistance with their chain. If you or your business has deployed a blockchain based on EOS.IO and you require assistance with the process, contact the support team through email@example.com.
15. Do EOS.IO aid the creation of a private or public permissioned blockchains?
EOS.IO can be used to create both private and public blockchains as the party launching the blockchains to determine the permissions and rules of participation in the network may wish.
16. Is there a warranty to the EOS Software?
The EOS.IO is provided without any expressed or implied warranty. Therefore, the company is not obliged to provide updates and fixes to the EOS.IO Software. If a person or a business chose to adopt and deploy the software, they would take full responsibility for patching and upgrading the software as it may be suitable to them. However, in the process of continuing to enhance the EOS.IO reference software, block.one may find and fix bugs on their schedule. It is upon each EOS.IO-based blockchain community to review, merge, and implement an upgrade strategy.
17. Where can I get an EOS wallet?
EO.Finance provide with EOS exchange and storing. Block.one provides a certain command line wallet (“kesod”) alongside the EOS.IO Software. However, there is no graphical interface for the tool. Various community projects are seeking to create a graphical interface for an EOS.IO wallet and you can refer to them. However, as indicated on the EOS.IO current policy, it does not endorse any of the projects so it is upon you to make your evaluation and determine the best offer for you.
18. What are some of the available hardware I can use?
EOS.IO supports the R1 elliptic curve; therefore, every iMac Pro, MacBook Pro, iPhone and iPad can use the secure enclave as a biometrically-secured hardware wallet. A similar R1 curve is used on several other smart-cards and Android devices. Block.one has not, and has no plan currently, of developing a hardware wallet. The community is at liberty to create and provide a cold storage solution for native token holders.