EOS Cryptocurrency Overview: What’s the Connection Between EOS and Ethereum?

What is EOS?

EOS is a blockchain platform that works similarly to Ethereum for the development of decentralized applications (DAapps). It is designed to make DApp development easier by providing an operating system-like set of services that can be used in the development process.

The platform is often referred to as the “Ethereum Killer” and aims to improve some things about Ether.

One of the main developers behind the EOS project is Dan Larimer, who has worked on similar projects and is also known as the creator of successful applications such as Steemit and Bitshares.

The idea behind EOS is to bring together the best features and benefits of the various smart contract technologies (e.g. Bitcoin security, Ethereum computer support) on one platform so that users can easily use their tools and freely create DApps.

System elements

The EOS ecosystem consists of two main elements: EOS.IO and EOS crypto assets. The EOS.IO is a structure on which the platform is based and which works in a similar way to an operating system. EOS is the native token for the network, which grants its holders access to network resources such as storage or additional bandwidth.

Delegated Proof of Stake (DPOS)

The EOS blockchain uses a decentralized consensus algorithm called Delegated Proof of Stake (DPOS). According to this algorithm, the token holders in the blockchain, using the EOS software, select the block creators through the continuous approval system, and each network participant can participate in the process of generating blocks according to the votes received. Management can use tokens to add and remove IT staff in the case of a private blockchain.

Delegated proof-of-stake permissions only allow 21 companies (whether individuals or institutional-sized miners) to create new blocks. These 21 units are known as witnesses. In order to become a unit, people who have EOS tokens must cast their vote for which they wish to witness.

Ultimately, the top 21 will be selected automatically in every 21 block round. The number of votes determines the number of blocks the witness can create or tear down. Since the entity mining the block receives the entire block reward, it is a very desirable position on the network to witness.

The delegated proof-of-stake consensus was created to prevent mining pools from forming and to increase network security. Through the voting process and limiting the pool to 21 block miners, the opportunities that can compromise the blockchain are drastically reduced as there are fewer companies that can negatively impact it.

When a company is chosen to witness, it is encouraged to act in the best interests of the blockchain. Otherwise, they risk losing their position as a Witness and forfeiting all potential gains if they are.

Scalability

Scalability is an important characteristic of any platform as it must be able to handle market demand and the resulting traffic. Bitcoin currently has a maximum capacity of 4 transactions per second while Ethereum has a network capacity of 20 transactions per second. Based on the deployment log verified by the delegate, EOS has stated that it can process up to 50,000 transactions per second.

www.eos.io.

EOS token distribution

EOS tokens have been issued by the Ethereum platform since June 26, 2017. The process should take place in several steps within 341 days. 1 billion tokens are to be distributed.

The first phase took place from June 26th to July 1st, 2017. 700 million tokens are distributed evenly in 350 short periods of 23 hours each. The remaining 100 million tokens, which make up one tenth of the total, are reserved for Block.one and cannot be sold or transferred to Ethereum networks.

This system was developed so that larger companies do not buy the tokens at the cheapest price in the beginning.

Where can I buy EOS?

EOS can be traded against BTC, ETH, USD, USDT, and a range of other cryptos on a wide list of exchanges. Binance and Huobi are the exchanges with the largest trading volume at the moment.

EOS value

On April 29, EOS reached its all-time high of USD 22.89. Currently, the EOS coin is trading at a price of $ 5.74. EOS is the fifth cryptocurrency on CoinMarketCap according to its market capitalization. The current market capitalization is $ 5,200,965,427.

Conclusion

EOS shows promise as a blockchain platform as it is a scalable and efficient option for Ethereum’s DApp environment. As for the native coin, however, it is not yet known whether it will grow due to its use or affiliation with the project.

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