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What is EOS?

Jan 18, 2020 | Cognition

There are many different cryptocurrency ecosystems tapping into new technologies. EOS Has become one of the higher-valued ones, yet its infrastructure remains in the early stages.

That doesn’t mean that this project doesn’t have the necessary potential, however. A lot of different opportunities are being explored in this regard. 

The Reason why EOS Exists

With over 6,000 cryptocurrencies, blockchain assets, and digital tokens in existence, it is difficult to stand out. At the same time, more competition among legitimate projects is always welcome. There is a lot more to this industry than just Bitcoin, Ethereum, and XRP.

At its core, EOS’s creation is designed to facilitate the development of DApps. Albeit there are multiple blockchains facilitating such applications, few of them effectively note traction. It is believed that the future looks very bright for distributed applications. Only time will tell if that is effectively the case. 

At this time, there are several hundreds of DApps built on the EOS infrastructure. While some have been abandoned by developers, there will be new entrants as well.  Most of the distributed apps on this blockchain focus on gambling and finance. With the rise of DeFi, that is not entirely surprising either.

To spur on the development of DApps, EOS’s core approach is crucial. The developers intent to make this ecosystem more approachable to developers. Achieving this goal may prove complex. Competing against Ethereum for DApp traction is no easy feat. 

Core Features to Note

When looking at this ecosystem, there is a lot more than the native asset, blockchain, and smart contracts. Any project involved in cryptocurrency suffers from core flaws which need to be addressed. Doing so at the core protocol level is often the best approach. It appears that EOS’s developers took an interesting approach.

First of all, one of EOS’s core strengths is addressing scalability. More specifically, the developers introduced new solutions to avoid major problems. Those include parallel execution and asynchronous access to network resources. 

Secondly, there is the free-to-access approach. Several ecosystems require investors to buy the native token before they can access its resources and functionality. Even then, those tokens often have to be spent to achieve anything. In the case of EOS, users are incentivized to hold their tokens. Doing so provides permanent access to the network, both for regular users and developers alike.

Third, the development kit provided by Block.one. It is a crucial pillar for anyone interested in blockchain, smart contracts, and DApps.  By further lowering the barriers to development, the ecosystem strengthens its position automatically. 

Second, to last, there is the proof-of-stake angle. Unlike bitcoin or ethereum, EOS has no mining through proof-of-work. Instead, the entire business model focuses on proof-of-stake. While the efficient nature of this system is up for debate, it is the approach the developers will stick with. 

The potential downside to proof-of-stake is token supply inflation. For EOS, there will be more tokens brought in circulation as more users join the ranks.It remains to be seen how this approach will pan out. A higher supply often leaves less room for token value appreciation. 

Congestion Remains a Concern

Despite a focus on scalability, EOS is not safe from network congestion. Issues have become apparent throughout 2019. While CPU resources can be purchased on the network, the rental market remains somewhat speculative. 

One way of solving this issue is by redesigning the REX marketplace. This is where users can rent CPU and NET resources accordingly. This resource exchange will be revamped fairly soon. Once that new version goes live, most of the congestion problems should become a thing of the past. 

There was also the EIDOS airdrop in late 2019. It effectively created another wave of network congestion. Albeit this was a temporary issue, it goes to show that external events can always have an unexpected impact. 

Where to buy EOS?

Dozens of trading platforms grant users access to this asset. Obvious choices include Huobi, OKEx, Coinbase, Binance, or UpBit. There is no lack of exchanges were this asset can be bought with other cryptocurrencies. Some platforms also support fiat currency pairs.

Images courtesy of their respective sources.

Fintoism is not providing financial or investment advice. All content published on this platform is for entertainment and educational purposes only.

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<a href="https://fintoism.com/author/oglock/" target="_self">JP Buntinx</a>

JP Buntinx

JP Buntinx is passionate about cryptocurrencies, fintech, blockchain, and finance. He currently resides in Belgium.

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