EOS promises to promote the development and dissemination of decentralized applications. It presents itself as an operating system for the blockchain but at the moment there are some aspects on which it would be good to clarify.
What is EOS system
As many of you know, if you are interested in this topic, the cryptocurrencies are “pumping” the prices of video cards, without signals that the phenomenon will soon stop. And they are also pushing many to invest by forgetting caution. And above all they have helped bring out from the lair hordes of pseudo-anarchists eager to subvert the world economic order by decentralizing the currency.
All the current and potential qualities of DLT (Distributed Ledger Technology, of which Blockchain is the most famous exponent) have emerged, but also the glaring flaws that currently afflict it. Exorbitant costs for transactions, transfers that take place in hours if not days, Bitcoin fork each season. The problems are certainly many and every famous Blockchain is trying to solve them in their own way.
In all this scenario, a new startup, this block.one (based on the Cayman Islands but with contributor scattered throughout the world) is trying to provide its own answer. And it is at least an “unconventional” answer, in the sense that, to date, we have always talked about projects with their own Blockchain, for EOS these considerations are no longer valid.
First of all, it is curious that he wants to compete with Ethereum despite having issued his tokens under the ERC20 standard and therefore on the ETH Blockchain. The ICO lasts 341 days and ends on 1 June 2018. From then on it will be impossible to transfer tokens from address to address on the Wallet Ethereum: the EOS token purchased, however, can be transferred on an EOS Platform performed by someone on some Blockchain.
Yes, because block.one said that at the end of the development phase it will release “EOS Platform”, a real operating system that can run anyone on its own Blockchain.
This means that we will probably see – especially initially – a sort of EOS Dark, EOS Gold, EOS Cash and who knows how many other alternatives, a little ‘similar to what happened with the fork of Bitcoin. Probably some of these will end up succumbing to better alternatives.
Why do we talk about the operating system? Because decentralized applications, DApps, and the bandwidth available to them can be performed within EOS Platform as well as the amount of storage and power available will depend on the amount of EOS token “stakata”, ie “included in the smart contract” deputed to make the decentralized application work. Think, for example, of what happens with Cryptokitties. As already happens on Ethereum, therefore, those who can buy more tokens will certainly have more benefits.
DPOS and the “constitution of EOS”
One of the most interesting features is perhaps the presence of a consensus algorithm different from those adopted by the most distinguished Ethereum, Litecoin and Bitcoin.
EOS rests on the Distributed Proof of Stake. The operation is as follows: each member of the community of each EOS Platform will be able to elect 21 candidates. The weight of each user will be determined by the amount of EOS in their possession: in short, if you are Warren Buffet your vote is likely to be worth more than the vote of those who are writing these lines at this time. Precisely because Warren Buffet can buy quantities of EOS hardly imaginable to “common mortals”.
The 21 people elected will have the task to validate the blocks and then turn the DApps, if any of these 21 individuals behave badly the community can obviously revoke their vote and make the person in question void. What is the incentive to be elected? Well, at the end of the ICO there will be a billion EOS in circulation, but every year the quantity will increase by 5%: this 5% of extra token will be distributed among the 21 elected ones. They will therefore be the only ones to receive rewards, always in the hypothesis that they do not lose their position in the meantime.
But EOS wants to be a democratic system and avoid problems like those of The DAO that brought a big rift in its Blockchain and even a fork. In fact there will be a real constitution whose Hash will be incorporated in every transaction. This constitution is to be understood in the literal sense of the term. It will establish the rules and the netiquette. A little like in the “Terms and Conditions” section of the products we use every day. This constitution can be approved only with the consent of 17 of the 21 elected representatives. As usual, users can revoke their consent and “lose the chair” to those who try to approve unwanted changes.
Such a small number of delegates is a boon even if some important Dapps should have critical bugs: they can be immediately blocked waiting for the developers to solve the problem.
The great advantage of this system is that everyone will be encouraged to behave well so as not to lose this privilege. Obviously this system implies that there will be no transaction fees. Furthermore, block.one says that the EOS Platforms can scale up to one million transactions per second. If you want a comparison term Ethereum reaches 20 tx / s, while Visa processes about 140 thousand per second.
The dark points of EOS Blockchain Bitcoin
Perhaps not everything is gleaming gold: block.one has declared itself to be a private company, and being based in the Caymans it has very few transparency obligations. In fact, among their FAQs on the website they state that the proceeds deriving from the sale of tokens, declared in approximately 700 million dollars as of October 29th, will be used to cover operational expenses and, in any case, for other expenses that will not be made public.
Moreover, Block.one, after having released the software, always declares on the site’s FAQs that it intends to become a Blockchain consulting firm for companies that intend to reinvent themselves and embrace this technology. A little ‘vague and dark, do not you find?