EOS: Blockchain Token – What is it?

4 min read

Episode 25 of Blockchain Token covers EOS! In this series, we will cover the different types of blockchain platforms and cryptocurrencies on the market right now.  We’ll give you a quick description of each blockchain/token, its function, who is their competition and where you can learn more.

EOS is a blockchain-based platform that aims to scale through reducing the computational demand placed on each node. Through implementing this process, EOS believes they can solve some of the scaling issues other blockchains have faced! Watch Disruption Joe as he breaks down the EOS project!

EOS is a software that introduces a blockchain architecture designed to enable vertical and horizontal scaling of decentralized applications (dApps). This is achieved through an operating system-like construct upon which applications can be built. The software provides accounts, authentication, databases, asynchronous communication and the scheduling of applications across multiple CPU cores and/or clusters.

The resulting technology is a blockchain architecture that has the potential to scale to millions of transactions per second, eliminates user fees and allows for quick and easy deployment of decentralized applications.

Block.one, a Cayman Islands exempted company, is building the EOS.IO Software with employees and advisers based around the world.

At the end of its development stage, block.one will be releasing the EOS.IO Software it has developed under an open source software license.

EOS tokens are currently ERC-20 tokens distributed on the Ethereum blockchain. You may have seen discussion about a particular line in their whitepaper people site as evidence that these ERC-20 tokens are not worth anything. The line says:

“The EOS Tokens do not have any rights, uses, purpose, attributes, functionalities or features, express or implied, including, without limitation, any uses, purpose, attributes, functionalities or features on the EOS Platform.”

You’ll have to keep your ears open and DYOR, but consider the following as well. The founders tokens represent 10% of the aggregate EOS Token distribution (or 100,000,000 EOS Tokens). The EOS Token distribution smart contract does not permit block.one to trade or transfer the Founders Tokens during the EOS Token distribution period.

Block.one is building the EOS.IO Software but it will not configure and/or launch any public blockchain platform adopting the open source EOS.IO Software. Any launch of an EOS Platform will occur by members of the community unrelated to block.one.

EOS believes that other blockchains built to support decentralized apps like Ethereum, Nxt, and even Bitshares which was built by Dan Larimer, the CTO of EOS, have inherent flaws that may be too big to overcome.

How will EOS beat out these other blockchains? The EOS blockchain will be built on a consensus mechanism called delegated Proof-of-Stake (dPoS). They plan to scale on the reduced work load of individual nodes during parallel execution. They also separate Authentication from execution making asynchronous communication secure.

They also use Web Assembly Stack Machine to compile and fix applications. WASM is designed to be encoded in a size and load time efficient binary format. Web Assembly aims to execute at native speed by taking advantage of common hardware capabilities available on a wide range of platforms.

So far 588 million of 1 billion tokens have been bought and you have until summer of 2018 to buy more.

As a private company, proceeds of the EOS Token distribution will be utilized by block.one for “general administration and operating expenses as well as to build a blockchain consulting business focusing on helping businesses re-imagine or build their businesses on the blockchain” and “developing more open source software that may be helpful to the community and building decentralized applications using EOS.IO Software.”

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