Guide (1):

What Is EOS?


EOSIO is the startup that has received the largest Crowd Funding in history ($ 4 billion)

Published on CNBC

  • EOSIO
  • Filecoin
  • Tezos
  • Ethereum
  • Ubuntu Edge (Phone)
  • TRON
  • Lisk
  • Star Citizen (Game)
EOSIOFilecoinTezosEthereumUbuntu Edge (Phone)TRONLiskStar Citizen (Game)

The graph shows the percentage of EOS.IO project raised funds compared to other projects that have received "Crowd Funding". Source


The most important indicator that could be concluded from this graph is that the raised funds by all these famous and large projects did not constitute more than a quarter of what the EOS project has raised. It is a revolutionary project in the full sense of the word! The percentage of the difference between EOS and the secondly ranked project exceeds 93%. Not only that; but also the proportion of all the raised funds for all 171 projects listed in Wikipedia page for highest-funded crowdfunding projects do not constitute 65% of what EOS has raised alone!

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Introduction:


Many technical terms present a barrier hindering non-specialists from understanding important and decisive issues in the area of cryptocurrencies & blockchain, in this article we will try to simplify those terms as much as possible. We will discuss the EOS technology; a matter that is of a higher priority for those interested in cryptocurrencies; in order to know more about one of the important cryptocurrencies latest technologies; if not the most advanced one.

Simply, EOS is a decentralized platform designed to develop and support the ability to build decentralized applications; these applications that can handle massive numbers of users at the same time, rapidly and free of charge. The system was developed by Dan Larimer.

What could EOS offer to the world?!


EOS aims to establish a secure and transparent system; suitable enough to offer a management system for both local and global monetary transactions, providing an alternative to the current banking system.

Not only that, but also it aims to offer itself as an appropriate system capable of running elections and referendums; where the blockchain technology could be used to guarantee its credibility and protection from fraud and rigging. Also, EOS aims to create a global digital identity to be used to travel across countries and enabling the ownership of different properties.

"EOS is very similar to Ethereum, and it is developed to overcome Ethereum disadvantages and to become a viable World Computer that can scale from inception and be suitable for global use to be the “Web 3.0” infrastructure ."

“In terms of market size; the EOSIO was able to position itself in the top 10 cryptocurrencies right after a very short period of its launch.”

EOS main function is to provide easy to use tools for the development of decentralized applications (dApps), as well as to provide a system enabling transactions to be carried out immediately, in addition to the system "scalability"


To familiarize the reader; EOS has disruptively changed the market due to two factors:


EOS requires no fees for Transactions!

Currently EOS is developing technologies that can handle millions of transactions in just one second.

Readable account name EOS is different from any other cryptocurrency, where you can send your tokens to a wallet address without the need of copy it, because these addresses are readable and savable.

eos.io

EOS Blockchain Advantages

Ability to write smart contracts in all WebAssembly-based programming languages such as: Python, JavaScript, .NET, GO And a lot more.

Parallel Processing: EOS platform can handle transactions more quickly because of the ability of distribution and parallel processing, so far this is not possible for any other currency, which provides a limitless scalability expansion.

Multithreading: Parallel processing and Multithreading technologies have existed since the 1990s; however, there is no blockchain system based on it so far! Even these technologies have not yet been applied to EOS, however, it is being developed and will be implemented within few months

**The reason behind this delay in implementation of multi-threaded parallel processing is the detailed and careful work in the developing the cores of the system; to increase the transactions that can be carried in one core as much as possible, before the commencement in developing the multiple cores. There is an urge to complete this work as soon as possible! But on the other hand, there is no need to rush; as there is no blockchain that has exceeded EOS speed so far. You can confirm this via blocktivity.info

Low latency: there are continuous efforts to minimize latency as much as possible, allowing for smooth operation of the decentralized applications (dApps).


The "ideal" decentralized operating system : EOS operating system uses "DPOS" Delegated Proof of Stake consensus algorithm, which gives the voting right to all users on the critical decisions, so everyone has the right to participate in the decision-making process, unlike other blockchains that adopt Proof of Work “POW” and Proof of Stake “POS” consensus algorithms, which gives decision making authority to those with greater mining power or more stake; only.


“DPOS”


is a new consensus algorithm created by Daniel Larimar


Delegated-Proof-Of-Stake


Free transactions: with this feature in EOS; developers will be able to run their applications on the EOS Blockchain using staked EOS, what is more important when addressing used resources to build the applications is that; the EOS token used to build these applications will not be spent!, what is only required is a proof of ownership and then it will be possible to use the EOS network resources. In addition to the above-mentioned feature; application developers shall be able to exchange EOS network resources among themselves.

EOSIO blockchain is the longest blockchain ever, with more than #60,412,674 million blocks so far

“The EOSIO is the first Blockchain network with zero carbon emissions!”

https://eosauthority.com/green/

SSelf-sufficiency and sustainability: under the current model; a 5% inflation is provided and is expended for the sake of continuous network development. (Other blockchains do not have a sustainable, generous and equitable system that guarantees the funding of its development forever, and those who are funding those developments at the moment are independent entities using their own money.. "They are always in disputes over expenses and development.")

Block producers, who they are?!

In EOS, there is no mining process unlike that process in Bitcoin or Ethereum, because the mining process is not fair, useless and It highly consumes electricity; while unlike to what people think: it does not increase the cryptography of the network. The mining concept was introduced initially to solve the problem of equitable distribution; simulating the gold's natural presence; as it was available in abundance then it became gradually scarce due to increased mining. But this is not useful now, as he who possesses a large mining capacity is the one who possesses more money or more sophisticated technology. Gold was geographically distributed, which limited the capabilities of those who have the capacity to control it with the use of advanced technologies. Thus, wealth will not be fairly distributed.

Eventually; PoW miners do not serve the network with useful services.
They spend money to buy mining equipment to mine and sell what they get to have revenue, and they paying high costs of electricity which obstruct them from doing much to the network service. Thus the DPOS algorithm was introduced; to enable voting for those to serve the network and rewarding them for the services they offer; only the services that are well developed and had high appreciation by the community and beneficial to it. And this was a revolutionary way making many programmers take advantage of their experiences and spend their time serving the EOS network; offering professional products that are not available at any other network at all! If you review the block explorer "bloks.io" you can certainly conclude that it has a unique and perfect design, the multiplicity of features cannot be found on any other Blockchain network, this is just a product of an independent developer; those who are not affiliated to any institution or company at all, he programmed it for free before gaining any returns from the block producing!

Additionally, EOS has the largest number ever of wallets for mobile phones, PCs and web browsers, superseding any other currency. It also has 11 different block explores dedicated for EOS network only, more than 9 tools for network data analysis, more than 20 decentralized exchange platform, various tools and sites for developers’ guidance and training, more than 30 dedicated YouTube channels addressing EOS with due care and continuous focus, all of the previously mentioned features are due to the competition to serve the network and gain votes, based on the brilliant URI concept. You may refer to AllThingsEOS.one website to read more and more about the free tools and services provided by developers to serve the EOS community.

What is voting in EOS?



Because EOS network adopts Delegated proof of stake algorithm “DPoS” to proof consensus, therefore everything in EOS resembles a democratic system in terms of governing states and running governments, where decisions are made by a voting process instead of individual decisions.


How is the voting process performed?

Voting is performed from within the portfolios of EOS currency holders; by an authenticated and recorded operation on the blockchain itself, avoiding any suspicion of fraud or error.


What is Voting made for?
Voting is carried out for important decisions concerning the network; such as choosing network operators “the block producers”., Block producers act as representatives for those who voted for them in a similar manner as a congressman represents his constituents. One of the most brilliant features of EOS is the ability to change the vote at any point of time; in case the block producer takes decisions that aren’t aligned with the voters' vision concerning the network’s benefit and future. This great feature could only be created thanks to EOS advanced development; which guarantees the voting validity and credibility ensuring it came from the currency owner himself


**Criticism: many people criticize this voting system, the reason behind that Is relating the voting weight to the number of the owned EOS currencies -Relative weight- rather than the population number, the answer to this criticism is: the population number shouldn’t have the highest consideration with respect to a public property, the network is simply a monetary resource, it is not a state consisting of land, population and civil states; on the other hand, it resembles a company where a decision is affected by those with the highest shares, not the employees nor the little investors, a person with the highest share shall worry about the interest of the network more than a person with a minimal share; who usually won’t care much about the network’s future and has owned limited number of currencies to sell it when prices rise.

***Is it possible to vote on other things?

Yes, Any person with EOS account can create a referendum concerning any topic he/she wants, gaining the same credibility and reliability of voting on the blockchain.

Who are “Proxies”?

Proxies were created to provide a second voting layer, simplifying the follow-up process for the EOS currency holders; instead of having to follow the block producers and study the details of their works themselves, as well as knowing their credibility and real service to the networks.


Currency holders can simply vote for proxies and proxies can vote on their behalf and chose the most efficient block producers, and revoke that voting in case the efficiency drops.


To summarize, EOS aims to combine the features of the best technologies with the best governance models and gather them correctly in a One & Super Fast platform, with limitless scalability, which will be a usable tool for real business needs, unlike the other broken blockchains.

How EOS works?


EOS blockchain is similar to Ethereum in terms of the ability to host dApps, however, it exceeds it by its ability to increase the number of transactions that can be processed per second, which reached more than 50 thousand transactions per second at the peak use of the network, in fact it has a higher capacity, but the usage has not reached more than that so far.

It is also characterized by unlimited scalability; even before the implementation of parallel processing and multi-thread updates, it has outperformed all other blockchain networks in terms of the number of transactions it can perform per second.

EOS adopts an "ownership model" of the network, where the token owners have ownership of the network resources equivalent to the tokens they own; this who owns 1 EOS owns one of billion of network “NET,CPU” resources (because the number of EOS tokens is 1 billion). Hence, He is able to own and use resources based on the stakes he owns instead of paying for each transaction he performs, which helps canceling the transaction fees. Not only that, it also helps users maintain their shares, also it enables them to create "freemium" applications that will ensure easy access for massive numbers of new users to the network!

To familiarize the reader more with the flexibility of EOS, it allows users to rent network resources or delegate their stake usage to other developers in order to use it in developing their own dApps!


"EOS REX" EOS Resource Exchange:

This platform was introduced to be the primary place to trade network resources (CPU, NET) and to make it easy for dApps developers to obtain resources easily and more quickly, as well as provide users with the ability to offer resources they do not need for a rental.


The EOS model of ownership stresses on the fact that the user is the owner of the network, not just a customer paying for the network usage "as if it is owned by someone else." This is what really increases the EOS intrinsic value

Some of EOS Features

User accounts enjoy a complete authentication and identification systems, plus multiple levels of permissions - through which permissions can be set for others or applications - and in the event of a stolen account; the recovery feature can be found in the program.

EOS is developing additional features for server hosting and cloud storage, which helps developers to produce and upload their products online via the EOS system directly.

EOS Blockchain will be able to handle 1 million transactions per second on a single chain, and an infinite number of transactions on multiple blockchains which are connected to the main chain.

EOS do not require micropayments here and there; (such as the user paying to send messages and perform tasks on the block). Instead, developers are free in determining the nature of transactions fees associated with their decentralized applications.



The EOS developers community can develop applications as well as fix bugs in a safe and efficient manner, thanks to the employed governance and management model. This model relies on block producers, who can verify transactions that were made during the downtime; and not to approve it until the maintenance is performed.


EOS can optimise performance, as blocks are designed to be resized according to the volume of incoming transactions.

The EOS ICO was carried out over a year, with 2 million tokens being distributed daily to shareholders based on the amount of the ETH they send to the ICO wallet address.


Who is behind EOS?

It is intuitive that the reader is now wondering who stands behind this great intelligence!, after what was presented regarding the EOS, its advantages and features that have no match in other blockchain networks. It is important for us to learn who planted the first seeds of this project, and how all of this success was achieved.

It is Daniel Larimer, one of the Crypto pioneers, a person with a rare experience in the Blockchain technology construction and development. At the Bitcointalk forum, he has discussed with Satoshi Nakamoto several times regarding the Bitcoin scalability and it’s inability to handle large numbers of transactions if the world decided to adopt Bitcoin.

He has also developed three of the most famous and successful Blockchain projects: Bitshares, Steem, and EOS. He started his journey in 2014 when he started his first project "Bitshares" which was received great hype for its high transaction processing speed, as well as for building the first large-scale decentralized trading platform.


And he developed a technology called "Graphene", which became the fastest blockchain technology ever due to the engineering genius in its construction, where many blockchains networks were built on it.


As mentioned earlier, he is the creator of the DPOS algorithm which used by many other blockchain networks, including TRON, Tezos, Nano, Lisk, ICX and many others.


He did not stop at this point, yet he even created "Steem" in early 2016. It is a blockchain platform that secures income for users who write useful articles, in a mining-like way where content writers are rewarded with monetary revenues in return for the content they provide in their articles. It is a successful platform with large numbers of users. It signifies one of the most successful uses of blockchain technology. Millions of users use it to publish useful articles and earn revenue every day.



Personally, Dan has been a programmer since childhood; with extensive cultural interests that enabled him to understand the global economic system; and therefore simulating it in the EOS project, he is also interested in philosophy, especially the "Game theory" and he has made some good contributions regarding it. (you can find many of his great articles on his Steemit and Medium accounts.)



Last but not least, EOS: the subject of this article; was his third project. EOS has gained great media attention before its launch. EOS was founded by Block.One who developed its code, form the early beginning they have also received considerable funding from famous investors including Mike Novogratz. The success of EOS can be attributed to the experience of Block.One team, They are experienced and knowledgeable in the industry of blockchain applications, without having to mention the fact that they have a group of the best consultants, investors and developers from all around the world.



Block.One EOS

Everything we discussed herein was brought to light by Block.One, the company that laid the foundation for EOS project from the square one. In 2017, they launched EOS publicly. It is no secret that the company "CTO"; and the creative mind behind all of that is: Daniel Larimer. It should be highlighted that this platform "EOSIO" is not managed by Block.One; but by the 121 block producers. Block.One company cooperates with the currency community in developing <eosio> system. It is not the only entity responsible for its development but is supported by a large number of block producers.

It is important to mention the amazing entrepreneur Brendan Blumer, Block.One CEO who has extensive experience in the Tech field, he was one of the first Bitcoin and Ethereum miners. Brendan started his first venture at the age of 15, selling virtual assets inside MMORPGs. His first venture GaMeCLiFF, was purchased by Internet Gaming Entertainment (now IMI Exchange) and in 2005 IGE relocated him to Hong Kong upon finishing secondary education. At IGE, Brendan grew the account sales division to a highly profitable, 5m USD per annum business. After two years at IGE, Brendan started a new venture called Accounts.net which became the world's largest game-account selling website; within three months the company's monthly revenue exceeded 1m USD. In 2010, Brendan founded Okay.com in Hong Kong which builds real estate enterprise software for use by real estate agents directly employed by the company. The in-house software platform combines a proprietary CRM and Property Database to support an entirely mobile virtual office for real estate agents in Asia.

You may also review his interviews with Bloomberg and Forbes


Peter Thiel, the first investor from Silicon Valley in Facebook, who founded PayPal with Elon Musk, was not known that he had invested in any project in Cryptocurrency and Blockchain field except for Bitcoin and Block.One

Rob Jesudason

Rob Jesudason

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It is worth noting that Rob Jesudason; the CFO at Commonwealth Bank, joined the Block.One team to oversee making the project compliant with international economic laws, regulations and other banking requirements.


EOS Disadvantages?!

Nothing is completely perfect; there must be some flaws in everything.

1. Accounts are totally free, however! to open an account you have to buy a certain amount of “RAM” so that you can create the account and register it on the network. And this is a little expensive and could cost more than 1$. **This shall be resolved soon and completely so that it will be 100% free via "vRAM" and after implementing the parallel processing update.


2. Operations are completely free, however! In order to execute operations, you need to allocate a number of your EOS tokens to be able to use the network bandwidth and the processing (NET/CPU). This is also a little expensive. Even if you can do a few operations you have to allocate more than 1 EOS, which might be inconvenient for some. **This will be fully resolved after the implementation of vCPU and vNET, and after the implementation of parallel processing and multi-thread.


3. There is a usage daily limit, if you consume it completely you may not be able to carry out any processes until 24 hours later. **This could be good to preserve the network strength and avoid spamming the network.


4. from the announcement of ICO until the network launch; one of the objectives of EOS is to enable filing a lawsuit at a body called "ECAF" to recover stolen Wallets and Tokens; also to freeze the thieves accounts, but there was a flaw in the organization of this matter and the appointment of the appropriate people for it. The ECAF was shut down and so far there is no complete solution for this matter, current dialogues are being held to arrive at a suitable solution.

5. Many did not like the launching of the network, which was delayed several days; and was considered chaotic, but they did not know that the network does not fully function before the vote of 15% of the token holders; and this was one of the reasons for the delay, also the network launch was decentralized, Which means there is no particular entity behind it, what happened that several networks were launched at the same time and the majority of the audience adopted one of it.


6. EOS network is Centralized! Many people like to describe EOS as centralized blockchain because of its reliance on 21-121 Block Producers are spread around the world. In fact, block producers are extremely similar to the mining pools; such as those in Bitcoin and Ethereum. The mining pools are servers that are selected by Those with large mining power. Similarly, block producers are also selected by the EOS token holders by voting, and they could be changed at any time. They are safer for the network than the miners whom their personal interest comes before the network interest as a whole and the owners of the currencies in general. those who have a greater mining power would control the network and the interests of the primary network owners who are the holders of the currency. Also, the mining pools with the largest mining power in Bitcoin and Ethereum are not more than 7 pools only; while EOS has 21 main block producers and 121 standby producers, so which is more decentralized ?!


Conclusion



Presently, there are a large number of decentralized applications based on the EOS network, exceeding 350 dApp. One of these projects, which made news headlines, is the Everipedia project, a platform with a similar concept to Wikipedia (co-founded by Larry Sanger, a co-founder of Wikipedia) that uses the EOS platform for articles enlisting. By using the Blockchain they will ensure freedom of information dissemination, achieving information credibility and preventing manipulation.


What is the EOS future?

The massive raised fund that EOS managed to secure in Crowd Funding phase enables it to employ the best expertise from all around the world to develop its system, is expected to become the future platform for the launch of tokens, "ICOs", applications, decentralized trading platforms and social networks with unmatched power. Especially as its scalability feature is attractive to investors.

Final Word

We could describe EOS as the most disruptive project in the field of decentralized applications, with features that can change the market rules. Block.One: The team behind EOS development is equipped with a thorough insight, a great a experience and a belief in technology. The growth in the Cryptocurrency market may be the driver behind the initial success of many currencies that do not have a real development team or new technological innovation, however, eventually, only the technically innovative project with a real active developing team shall survive.

So, dear reader what are your thoughts regarding what you have read, and what do you expect to happen in the future, share with us.. In our Group on Telegram or via our Twitter account. And you can visit EOSWriter.io to read more articles about EOS.