EOS cryptocurrency review
The most popular cryptocurrency is Bitcoin. He is also the progenitor of blockchain technology, on the basis of which a huge number of alternative cryptocurrencies have already been launched. True, only a few have become popular and reliable. The top ten most capitalized cryptocurrencies include EOS. This project intends to permanently change the technology of transactions in the cryptocurrency system.
What is an EOS
In May 2017, Dan Larimer announced the release of the EOS project at the Consensus Conference. At the time of the announcement, the creator already had two successful cryptocurrency platforms behind him: the BitShares exchange, opened in 2014, and the Steemit social network, which has been operating since 2016 and has used its own cryptocurrency, designed to reward user activity. Both developed projects have an impressive speed of transactions within the system and a good reputation, which positively affects the reputation of the new project.
According to Dan himself, both previous projects helped him gain knowledge and will decide to implement a more complex project on the blockchain, namely the creation of software with which developers can quickly launch complex decentralized projects, applications, social networks and exchanges.
The speed of transactions in the system should be provided at the level of 1000-6000 operations per second, and in the future it is planned to improve the speed of transactions to a millionth figure per second. In addition, it is planned to completely remove the commission for their implementation.
EOS is owned by Block.one, a company registered in the Cayman Islands. The development team consists of 50 people. Under her idea of developing an operating system on the blockchain, she conducted an ICO, after which the EOS cryptocurrency of the same name was born, through the sale of tokens of which investments from crypto enthusiasts are collected for actual implementation.
The sale of cryptocurrency started on June 26, 2017. In total, it is planned to issue 1 billion tokens, while 100 million of them are reserved for the company and can not be sold.
Despite the fact that the system project is still running in test mode, the purchase of EOS tokens is ongoing. For all the time the company’s sales were able to gain over 2 billion US dollars, and the capitalization of the currency overtook Litecoin.
Is it possible to mine EOS
Currently, EOS cryptocurrency is not traded by the company and is not mined. The final distribution of EOS tokens ended on June 1, 2018. Until this day, it was impossible to get tokens in the traditional way through mining. But miners had the opportunity to exchange the Ethereum mined for EOS crypto signs, becoming a participant in the ICO. To do this, Ethereum mined using standard mining should be sent to the auction, after which each participant will receive EOS tokens. The address of the exchange was represented by the official site of the EOS project.
The trading system implied that each participant sending Ethereum will receive a proportion of the EOS proportionately calculated for the investment. The cost of coins for each buyer was calculated based on the ratio of the number of coins sold to the number of bidders and the total amount of investments sent. Bidding was held in intervals of 23 hours.
How then to get EOS
The answer is simple – just buy tokens on the exchange. Before purchasing, you should prepare a place for storing cryptocurrency and its further use if you do not want tokens to be stored on the exchange wallet. An official EOS cryptocurrency wallet has not been developed. The company has developed only a command line wallet, which can be obtained with the EOSIO software, but there is no graphical interface to it, but there are third-party resources that developed it. However, Block.one did not support any of the projects and offers users to independently explore the market and choose an individually suitable method. The company also does not plan to release a hardware wallet.
The EOS system uses the ERC-20 protocol. This makes it possible to store this cryptocurrency on universal wallets supporting this standard, such as MyEtherWallet, Exodus or hardware Ledger Nano S.
The creators planned to add EOS to trading on cryptocurrency exchanges after the completion of the ICO. But plans changed, and two months after the start, this token was freely sold on cryptocurrency exchanges. After the end of trading on ICO, you can buy project tokens only on exchanges in which trading pairs with EOS are present.
Bitfinex and Bittrex are the first cryptocurrency exchanges to support the project and add EOS to their system. They account for about 60% of the total turnover of this cryptocurrency. Bitfinex is also different in that it added an EOS-USD trading pair.
Almost on all exchanges, company coins can be purchased for Ethereum or Bitcoin.
How and why did EOS get into the TOP 5 cryptocurrencies
The company promises to invest the lion’s share of the amount received from the sale of tokens in the further development of its project, which guarantees the maintenance and increase in the capitalization of internal cryptocurrency.
The main competitor of EOS is the Ethereum platform. To compare profitability, it’s worthwhile to clarify that the competitor’s transaction speed is only 20 operations per second, and a fee of $ 0.075 is charged from users for each operation.
EOS is attractive to investors. It has developed an innovative system for attracting third-party capital: the potential capabilities of the system are distributed among all network users in accordance with the number of available EOS tokens. So if the user has n% tokens, then he automatically has the right to dispose of the corresponding n-th percentage of the resource, thereby opening up a huge number of opportunities for earning. Token holders are also provided with such bonuses:
- You can charge for transactions within the system;
- Providing access to storage on the blockchain;
- Impact on system management;
- Access to applications developed in the system and their users;
- Dividends from EOS;
- Airdrops – distribution of cryptocurrencies existing within the system.
In addition to all the advantages, EOS received the title of one of the most controversial cryptocurrencies. On the one hand, the project aims to make positive changes to the development of blockchain technology and bring them to a new level. On the other hand, many experts and critics urge not to buy tokens of the project, which is in its infancy. Many consider the project hype, and are also accused of fraud.
Despite the promise to invest the proceeds from the sale of EOS tokens in the development of the EOSIO project, the officially received profit is the property of Block.one, which it can dispose of at its discretion.
Multicoin Capital Investment Fund calculated that over the year of selling tokens in small batches, the developers managed to attract more than $ 2 billion to the project. According to experts, the amount received is so huge that the development team may lose interest in the project, without which this currency will not be able to function and develop independently.
According to the idea of Dan Larimer, the platform should operate on the algorithm of delegated proof of the share of DPoS, in which, for a fee, verification of operations within the system will be carried out only by 21 participants (the so-called EOS block producers). Token holders must independently select transaction validators using a wallet vote. It is the reduction of participants that should increase the speed of transactions to a millionth value per second. At the same time, Larimer is convinced that it will be beneficial for the participants in the system to vote only for the most worthy candidates, while maintaining speed and decentralization at a high level. But the main feature of the project is also its most vulnerable place, opening up a lot of opportunities for fraud.
So, according to the creator of Ethereum, Vitalik Buterin, the influence of each individual user on the outcome of the vote is negligible, which can lead to the fact that most of them will not participate in it. The remuneration for owning a node (node) is 5% per annum of inflation, which is approximately equal to $ 400 million per year, and this amount may become a pretext for an economic war between those who want to capture it. Bribing voters is also possible, in which attackers can capture most of the nodes and launch an attack on the system.
The wallet voting system has the right to exist on the blockchain, but no one guarantees that users will vote honestly. Such a system always carries great political and economic risks, reducing decentralization for all applications developed within the project.
It is also worth pointing out that the developers said that they were not going to take responsibility for the promises given to the project participants and the applications developed inside the system, since the further outcome of the project does not depend only on their actions. Larimer himself has two projects, the creation and promotion of which he was already engaged in, but later resigned from the post of general director, after which the projects gave up positions.
Forecast for the future
When making a forecast for EOS cryptocurrencies, it is worth considering the fact that these are not just tokens. EOS is backed by a sought-after project designed to eliminate minuses from blockchain technology and create a unique platform for transaction and project development speed. The capitalization of the cryptocurrency itself directly depends on the development of the project.
For the period from 2018 to 2020, experts predict a currency growth to $ 25-50 per unit, and if the platform is successful and in demand, the cost will only increase. The only problem is that no one knows how successful the project will be and how well the ideas will be implemented.
Under the buzz of criticism, the project nevertheless raised an impressive amount of investment, and the cost of cryptocurrency continues to grow. In April 2018, the company itself surpassed SpaceX by $ 17 billion in capitalization, which indirectly proves investor confidence in the project, as one company launches ships into space, and the second only released a beta version of the crypto project.
A huge advantage and at the same time a drawback is that EOS is an internal cryptocurrency of the system, the growth of which is completely connected with the intensity of the platform development. However, even the creators do not make predictions about how fast it will develop.
In addition, the company already has competitors having a common development line with it: Ethereum, Tezos, Aeternity, Quantum and Tauchain. The continued popularity of EOS also depends on their pace of advancement.
The very idea of the project is innovative. If it is implemented in accordance with the stated promises, the project can become a completely new round in the development of the blockchain and bring prospects for the company investors and token holders in the form of an impressive income. But is it worth betting on a project that is just starting to be implemented, while it does not provide guarantees? Everyone must decide for himself.
So far, the project is only gaining momentum and the purchase of tokens can make a profit even at a difference in rate, but you need to be prepared for the fact that the assets will have to be quickly drained if the reputation of the platform begins to decline, as well as the fact that the project can remain completely abandoned and the cost of EOS tokens Will be set to zero.