What is Eos? And how does EOS work? (2023 edition)

What is EOS?

EOS is a blockchain-based, fully decentralized network that enables the development, hosting, and execution of commercial-scale decentralized applications.

EOS supports all of the core functionality required to allow businesses and individuals to create these dApps in a way that is nearly identical to how traditional web applications are created. EOS has the ability to provide secure access and authentication, data hosting, usage management, permissioning, and communication between dApps and the internet.

Some even compare the way EOS operates to Google’s Play Store or Apple’s App Store.

How Does EOS Work?

EOS is designed to resemble the performance of a real computer, with even the software itself using some familiar computing concepts. As an example, there are three types of resources that power the EOS blockchain:

• Bandwidth – responsible for relaying information across the network.
• Computation (CPU) – the actual processing power needed to run a dApp.
• State Storage (RAM) – stores data on the blockchain that can be referenced instantly.

Platform Utility and EOS tokens

EOS holders can lock (stake) their tokens in order to participate in various processes. The users that stake EOS have the ability to vote and carry out decisions to alter the software’s rules, or participate in the blockchain validation process.

These tokens can also be used for transacting on the EOS platform, with the network supporting up to 1 million transactions per second.

Who Are the Founders of EOS?

The EOS protocol was founded in 2017 by a company called Block.one. The company was (and still is) led by Dan Larimer and Brendan Blumer. Larimer is a very notable name among blockchain developers as he had (prior to developing EOS) designed the first decentralized cryptocurrency exchange, BitShares, as well as the first crypto social media project, Steemit.

Larimer is currently occupying the position of chief technology officer for Block.one, where he is the lead architect behind the EOS software.

The EOS project came to life through a year-long ICO that started on June 26th, 2017. Block.one ended up selling 1 billion tokens, which netted the company a massive $4 billion dollars. This token sale was one of the largest ICO events in the history of the cryptocurrency industry.

What Makes EOS Unique?

EOS is a unique crypto project as it encompasses several important characteristics, such as:

• Scalability – one of the biggest problems of cryptocurrencies is balancing decentralization and scalability. Due to its Delegated Proof of Stake (DPoS) consensus mechanism, the EOS ecosystem has the ability to process around 1 million transactions per second. The EOS project achieves such a high throughput by utilizing parallel processing.
• Flexibility – unlike Ethereum, which can potentially be a victim of DAO attacks, EOS has created a solution for this problem. The platform can halt the node that processes such a transaction, and gets back to processing new transactions only after this problem is resolved.
• Decentralization – while Ethereum has often been referred to as the decentralized supercomputer, the EOS platform could be considered a decentralized operating system.

What Gives EOS Value?

EOS’s value is derived from its ability to act as a platform for smart contracts and dApp creation. This feature makes it one of the few platforms that can be considered a “full package deal.”

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On top of that, its token economy and structure allow its users to actively be a part of the decision-making process, which is a feature many in the blockchain space appreciate.

How Many EOS.io (EOS) Coins Are in Circulation?

There are currently a bit over 950 million EOS tokens in circulation out of the 1,027,411,229 total tokens available.

It should be noted that there is no limit to how many tokens can be minted, with new tokens being released in circulation each time a new block is created. The number of total EOS in circulation can be increased by 5% each year.

Other Technical Data

EOS reached its current all-time high (ATH) price of $22.89 on 29 April, 2018. The platform reached its highs in April as opposed to December 2017 or January 2018 (when all the other cryptos created their all-time high levels) due to its strong fundamentals which helped it push up. However, the current price action shows that EOS is on a downward price trajectory.

How Is the EOS Network Secured?

In addition to the Delegated Proof of Stake (DPoS, detailed below) mechanism EOS uses to secure its transactions, EOS.IO takes an active approach to governance.

EOS has features baked into it that enable its users to vote and carry out decisions to alter the software’s rules.

Holding EOS gives a user the ability to vote on decisions through staking, and block producers are tasked with carrying out every decision that is approved. Both holder/stakers and block producers can vote to amend the “EOS Constitution” – a governing document that holds the rules as determined by its users.

This ends up giving EOS block producers extensive power over typical network users.

For example, EOS block producers have the ability to freeze accounts – this is intended to further secure the network against bad actors, however, a power like this could in theory be abused. (Freezing an account requires just 15 of 21 EOS block producers to vote together)

How To Use EOS

Naturally, the primary use of EOS is staking in it’s DPoS mechanism and participating in network governance.

However, depending on the markets, EOS can be used as both a speculative investment tool and a means of payment – thanks to its instant, feeless transactions. With that being said, EOS isn’t as utilized as some other cryptocurrencies, and the platform has seen very small usage in the dApp sector.

How To Choose an EOS Wallet

The type of EOS.io (EOS) wallet you choose will likely depend on what you want to use it for and how much you need to store.

Hardware wallets or cold wallets provide the most secure option with offline storage and backup. Both Ledger and Trezor offer EOS storage.

Hardware wallets can involve a bit more of a learning curve and are a more expensive option, however. As such, they may be better suited to storing larger amounts of EOS for more experienced users.

Software wallets provide another option and are free and easy to use. They are available to download as smartphone or desktop apps and can be custodial or non-custodial. With custodial wallets, the private keys are managed and backed up on your behalf by the service provider. Non-custodial wallets make use of secure elements on your device to store the private keys. While convenient, they are seen as less secure than hardware wallets and may be better suited to smaller amounts of EOS or more novice users.

Online wallets or web wallets are also free and easy to use, accessible from multiple devices using a web browser. They are considered hot wallets and can be less secure than hardware or software alternatives, however. As you are likely trusting the platform to manage your EOS, you should select a reputable service with a track record in security and custody. As such, they are most suited for holding smaller amounts or for more experienced frequent traders.

Kriptomat offers a secure storage solution, allowing you to both store and trade your EOS tokens without hassle. Storing your EOS with Kriptomat provides you with enterprise-grade security and user-friendly functionality.

Buying and selling EOS, or exchanging them for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.

EOS Staking: Delegated Proof of Stake

To secure its transactions, EOS uses a system called delegated Proof of Stake.

DPoS uses a real-time voting and reputation system to decide who creates the next block on its blockchain. Anyone who owns EOS can help operate the network, but the more tokens you own, the more likely it is that you will be the one to create the next block.

Users have the ability to lock (stake) their tokens, with each locked open representing one vote in the network.

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Conclusion

EOS is one of the most promising platforms in the crypto sector as it has the potential to work both as a means of instant, fee-free payment and as a dApp-supporting platform – again, capable of instant, free transactions.

While some analysts argue that the voting system can cause security problems, others argue that the platform is undervalued and quite unique and brilliant (hence the name “Ethereum killer”).

EOS FAQ

Does Block.One Control EOS?

While Block.One is EOS’ main developer, it does not control the ecosystem whatsoever. Each user has the ability to vote and participate in the decision-making process, thus decentralizing the whole upgrade mechanism and involving each staking user in the future direction of the project.

How Much Does an EOS Transaction Cost?

EOS transactions are feeless, as all the fees associated with the transaction are removed by implementing an inflation-based mechanism rather than a fee-based one.

What are Elemental Battles?

Elemental Battles is a step-by-step tutorial that helps developers create their first blockchain application on EOS.IO.

Through eight lessons, users are taught the basics of blockchain development and how to create a fully functioning EOS.IO application, including building and launching their very own smart contract.

How to Buy EOS

Buying EOS is as easy as visiting Kriptomat’s how to buy EOS (EOS) page and choosing your preferred method of payment.

How to Sell EOS

If you already own EOS and hold it in a Kriptomat exchange wallet, you can easily sell it by navigating the interface and choosing your desired payment option.

EOS Price

Several factors influence EOS price, including exchange inflows and outflows, sentiment, technical and fundamental developments, the news cycle, and the general economic environment.

Ultimately though, the price of EOS is decided at any given moment by the cumulative buying and selling of millions of participants worldwide. You can keep up to date on the latest price action and news using crypto exchanges like Kriptomat or one of the many different cryptocurrency tracking services.

The current EOS price is EUR.

The 24-hour trading volume of EOS is EUR. EOS is currently ranked of all cryptocurrencies by total market capitalization, with a market cap of EUR. It has a circulating supply of EOS.

Register now to begin your journey into the world of EOS and cryptocurrencies with Kriptomat!

If you’re experiencing any issues or have any questions at all, please don’t hesitate to reach our Customer Support Team. We’re always here to help!