What Is EOS (EOS) How It Works & Where To Buy It?

EOS is a platform that specially caters to DApp developers – allowing for seamless creation and deployment of blockchain applications.

The platform’s framework and blockchain tools are designed to make the process as simple and convenient as possible – its simplicity and security position it as the perfect platform for developers.

EOS (EOS) has grown to become one of the most popular crypto projects in the blockchain space and is currently the 45th largest cryptocurrency in the world by market capitalization.

How EOS Works

EOS is specifically designed to host multiple applications through the utilization of its EOS.IO decentralized operating system. Businesses or individuals can easily create and deploy DApps, use smart contracts, and benefit from the security of the EOS network.

The EOS platform is powered by EOS tokens – similar to how ETH powers the Ethereum ecosystem. The EOS blockchain is a scalable, versatile, and efficient blockchain that claims to be an improvement on traditional blockchains like Ethereum and Bitcoin.

Essentially, the EOS blockchain network aims to act similarly to the internet. It simply provides the core functionality needed to facilitate all applications on the network.

Three standard resources power the EOS blockchain:

Bandwidth – used for relaying messages across the network – smart contracts require bandwidth for facilitation.

Computation – DApps require actual processing power to run and computation is the resource used to facilitate this.

State Storage – Data is stored on the blockchain and can be referred to instantly.

The EOS price isn’t necessarily reflective of the growth of the project but rather reflects the supply and demand for the EOS token. The growth of the EOS ecosystem, increases in user adoption, and DApp development are more informative indications of the project’s success.

What Is EOS Used For?

EOS is typically used for decentralized application creation and deployment. The network is perfectly catered to developers seeking to build – the EOS team has done extensive work to build tools that streamline the process.

Any company or individual can build a blockchain application thanks to the systems that have been put into place by the EOS project. And going forward, EOS aims to attract more users and developers to bolster the growth of the network and the EOS project as a whole.

The blockchain platform enables a secure creation process, provides EOS storage, and the benefits of the EOS network are secured by its delegated proof of stake consensus algorithm.

Additionally, the EOS cryptocurrency is typically traded on multiple exchanges. Its price fluctuations make it possible to arbitrage trade EOS tokens on multiple centralized exchanges.

EOS coins are among some of the most frequently traded cryptocurrencies in the crypto market.

Where To Buy EOS

EOS tokens can be purchased on most of the popular cryptocurrency exchanges. The EOS token experienced its most significant trading volumes in May 2021, when the 24-hour volumes surged to more than $20 billion.

Here are some popular crypto exchanges to trade EOS on:

• OKX
• HTX
• KuCoin
• Binance

Most crypto investors prefer to keep their tokens off-exchange in digital or hardware wallets. Many people consider this to be the safest option because most exchanges fall victim to hacks occasionally.

Trust Wallet is among the most popular wallets used by hundreds of thousands of people around the world.

About EOS

How long has EOS existed?

EOS was created in January 2018 by Daniel Larimer and Brendan Blumer. Larimer is a well-known figure in the crypto world and is particularly known for creating the first decentralized crypto social media project called Steemit.

The EOS cryptocurrency has seen extreme price fluctuations since its listing, and EOS’s price reached an all-time high of $14.37 on the 11th of May, 2021.

What’s controversial about EOS

The crypto space is expanding and new projects are constantly entering the scene. Trading volumes are increasing exponentially and innovations are revolutionizing finance. However, due to the speed of growth in the blockchain space, there is still a considerable amount of risk associated when investing in any crypto project.

All individuals must practice caution before investing in any project. It’s always best to do a substantial amount of research on a project, its history, its founders, and any other important factors involving the project.

Let’s take a look at the two biggest controversies surrounding EO:

• Block producer issues – EOS uses a delegated proof of stake to achieve consensus and block producers play a massive part in the functionality of the network. However, there have been an extensive amount of issues cited with the governance in EOS. One particular EOS block producer (there are only 21), cited concerns over governance and how sales are only supporting Chinese-based block producers.Many members of the EOS community voiced concern over how centralized the system seemed to be, with the project appearing almost biased toward Chinese-based block producers. More can be read here.
• Block.One scandal – The EOS Foundation recently announced that it would be taking legal action against EOS’ initial backer, Block.one. The foundation is seeking compensation for damages for negligence and fraud on Block.one’s behalf during the 2017 initial coin offering where $4.1 billion was raised.Block.one was the company that helped EOS host their ICO – what followed after has been nothing short of scandalous. The EOS foundation claims that there have been several difficulties in communication, fraud, and a multitude of broken promises. The scandal has led many members of the EOS community to lose faith in the project.

How many EOS tokens are there?

At the time of writing, EOS has a circulating supply of 988,575,701.77 EOS.

The total supply of EOS is 1,053,799,407.

Can EOS be mined?

EOS is not a mineable cryptocurrency. Unlike Bitcoin which uses a proof of work consensus mechanism, EOS uses a DPOS (delegated proof of stake) algorithm.

There are 21 block producers in the EOS network tasked with the responsibility of maintaining and upholding the security and integrity of the EOS network.

EOS token holders can utilize an array of decentralized financial applications within the EOS ecosystem to earn additional yields.

Some centralized exchanges also offer staking rewards for users who lock up their EOS tokens for a duration – typically a minimum of 30 days.

What is the market cap of EOS?

To calculate the market cap of any cryptocurrency, you can use the following formula: the current market price of the coin times the total amount of coins in circulation times.

EOS Market Cap = 988,575,701.77 EOS x $2,11 = $2,08 billion (45th largest cryptocurrency by market cap).

The market cap fluctuates according to circulating supply and market price.

Biggest Competitors Of EOS

EOS has seen significant success since its initial launch. The network has grown extensively and user adoption, as well as developer adoption, has increased rapidly. The EOS ecosystem has a current total value-locked (TVL) of $224 million. This is indicative of the positive sentiment surrounding the project.

However, EOS is not the only platform aiming to provide developers and other individuals with easy-to-create DApps and seamless deployment of DApps. There are several projects also seeking to offer consumers very similar features.

EOS’ top competitors are:

• Cosmos – The project aims to create an ”internet of blockchains” that are customized, scalable and interoperable. Cosmos also enables smart contract functionality and boasts an incredibly innovative infrastructure – the project has amassed a substantial amount of investment and support in recent months.
• Ethereum – Ethereum is the most obvious competitor and is currently the 2nd largest cryptocurrency in the world. In fact, Ethereum’s ecosystem is also the most valuable in the world, topping more than $100 billion in TVL. Ethereum Virtual Machine is among the most used computation engines in the crypto space.

What Are The Future Plans Of EOS

EOS has announced its intention to continue providing support to developers seeking to build DApps and increasing the number of users interacting with the EOS ecosystem and using the EOS network.

Currently, the EOS foundation is trying to settle a lawsuit against Block.one who was the initial partner that helped host the EOS initial coin offering (ICO) in 2017.

Pros And Cons Of EOS

Pros:

• Lightning fast transaction finality – The average transaction speed is around 1.5 seconds – the blockchain claims to be able to process up to 100,000 transactions per second.
• Catered to DApp developers – The EOS platform is conveniently catered to DApp developers seeking to create and deploy DApps. The EOS team put in a tremendous amount of work to build the necessary tools and infrastructure that would simplify the building of DApps for developers.
• Transaction volume is very high – EOS has been one of the most popular choices for facilitating transactions, garnering more than 2 million daily transactions on a regular basis.

Cons:

• Competition – EOS has proven its capabilities as a scalable and reliable network but it isn’t the only project providing excellent solutions in the crypto space. The EOS network piqued the interest of many consumers when it was listed – its ICO raised more than $4.1 billion.Since its listing, the price fluctuations of EOS coin have been extremely volatile – ranging from $2 – $14 and back down to $2. Amidst all this volatility and controversy, other projects like Cosmos have continued to perform exceptionally well. These projects have grown valuable ecosystems and have attracted hundreds of thousands of users to their networks.