EOS Crypto. EOS cryptocurrency: overview of how it works

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Cryptocurrency 2024

What is EOS? Ethereum's main competitor or just a copy?

EOS cryptocurrency coins Anyone who has ever dealt with cryptocurrencies has most likely heard about blockchain, because it is on this technology that the work of all digital coins that currently exist is built. In addition to Bitcoin and Ethereum , which everyone has heard of, there are other useful and popular cryptocurrencies. And one of these is the EOS cryptocurrency.

Content:

About blockchain in simple words

To understand how the EOS cryptocurrency works, you first need to take a step back and understand what a blockchain is.

Blockchain is a data storage format. It allows programmers to store data securely using what is known as an "open ledger" - a database shared by many computers and encrypted with a private key. And such a database is almost impossible to hack. If attackers want to change the data of a server (for example, the passwords of social network users), then all they need to do is hack the server on which this data is stored. But if this server used a blockchain network, then changing the data on one computer (server) would not change anything, since it would check with other computers on the network, and finding a discrepancy, would change everything back. Accordingly, in order to permanently change the data, it will be necessary to hack almost simultaneously all computers (servers) connected to a given blockchain network.

The main value of blockchain is to correct what economists call the “double spending problem.” This is perhaps the biggest problem created on the Internet. Any resource that exists on the network can be copied to any computer that can see it. You can't copy one real dollar in a second, but you can copy one digital dollar, and all you have to do is press "Ctrl-C." The same goes for music, movies or any other digital files. If something exists on the network, it consists of computer code, and anyone can duplicate that code indefinitely.

Blockchain allows programmers to solve this problem. The security nature of blockchain allows for the creation of unique data (audio, video, text, etc.) that will have a single owner or creator, even after someone else has created a copy of that data. When recording a song, you can mark the audio file as “Song 1 from ABC Studio.” Anyone will be able to make as many copies as they want, but it will always be an audio file labeled "Song 1 from ABC Studios" and any copy will always belong to ABC Studios.

Statistics on the use of the EOS platform by programmers in various fields:

Number of EOS users

What is the EOS cryptocurrency?

EOS is a platform created for the development of dApps (decentralized applications). Like most blockchain projects, the EOS platform has its own token. The goal of this project is to provide developers with all the tools needed to create full-scale decentralized applications using the EOS network.

The project was officially launched in 2017 by Block.One, a company that develops blockchain projects (though its main focus is EOS). Clients who want to develop their programs on the EOS platform purchase tokens to fund this development. Access to the platform requires the developer to have a certain number of tokens, which they purchase on the open market.

A higher price indicates greater demand for app development on the EOS platform.

Why was the EOS cryptocurrency founded?

To understand the idea of EOS, we need to understand the concept of decentralized applications (dApps).

A regular app like Angry Birds or Spotify stores its data on your device's hard drive. When you tell the device to launch a program, it finds the corresponding files on your phone and launches them. When you give it access to data, such as playing a downloaded song, your device again looks for files stored locally.

A dApp is an application designed to store your data over a blockchain network rather than locally on your device. If your Angry Birds app were a dApp, for example, it could store all your data in a blockchain database.

This architecture is not limited to data storage. A dApp can use the blockchain network to access computing power, short-term memory, and almost all hardware functions.

Note: This is the most simplified explanation possible. A complete description of decentralized applications is beyond the scope of this article.

This is what the ecosystem of decentralized applications of the EOS cryptocurrency looks like:

Many developers like the idea of working with dApps, as the block network will create a high-speed, highly secure format for accessing storage and computing power. Instead of building applications within the confines of a single device, you can create applications within the scope of a potentially huge network.

EOS hopes to take advantage of this growing market. Both the blockchain network and the development kit offered by this project were specifically designed for creating dApp applications. The goal is to make working on the EOS platform much easier than any other blockchain project.

What are the features of the EOS cryptocurrency?

EOS is not the only blockchain project designed for decentralized applications. Ethereum is one of the most widely used projects with the same intention. This cryptocurrency was the first to introduce the concept of “smart contracts”. Users of the Ethereum network can enter into a trade, and when the terms of the trade are met, the network automatically transfers its tokens (ETH) as payment.

However, EOS is touting new features specifically designed to help developers create apps. These features include:

Scalability. Blockchain applications often face limited resources. As noted above, this architecture has not yet gained popularity in the mass market. This is a challenge for a technology that relies on networks and network effects to be effective. EOS offers new scalability solutions such as asynchronous resource access and parallel execution. This will help numerous developers use the network simultaneously, helping to overcome resource bottlenecks.
“Token storage” model. Most blockchain projects require users to use tokens, like coins in an arcade. You need to buy a token and then spend it on access to the project (this is called a transaction model). The EOS cryptocurrency advocates a “free access” model. Instead of consuming tokens, the network “demands” them to be stored. After this, access is granted in proportion to the number of tokens the user has. This means that developers can pay one time upfront (when tokens are purchased) in exchange for near-constant access to the EOS network.
Development kit. Block.one has released a development kit for EOS that is considered more feature-rich than its competitors. A developer kit is a set of tools provided to programmers to create applications, providing access to what the platform was originally designed for. The more complex the development kit, the more likely it is that the developer will be able to solve problems and create similarly complex applications.
Authentication. Unlike many blockchain projects that focus on application development, the EOS cryptocurrency offers developers the ability to create new user accounts directly on the blockchain base. This can help make creating new applications faster and easier. It also makes the network more efficient by taking an important repetitive task (user authentication) and making it part of the system architecture.
Proof-of-Stake (PoS). The EOS cryptocurrency is built on the so-called “Proof-of-Stake” model. This means that the network of computers that make up the EOS blockchain is organized according to the number of tokens owned by each participant. The more tokens, the greater the role in storing and resolving data on the EOS network. This model is generally considered to be more efficient than the original Proof-of-Work (PoW) design.
Inflation. This is most likely the best idea in the entire EOS cryptocurrency network. This project is designed to take inflation into account. The EOS project will continue to issue new tokens as the network and users grow. If done correctly, this will avoid the problem of increased costs (such as Bitcoin) to allow the EOS cryptocurrency to remain at a consumer-friendly price.

How to buy and where to store EOS cryptocurrency

eos storage wallet Purchasing EOS coins is similar to purchasing any other cryptocurrency. Most often, EOS coins are purchased on cryptocurrency exchanges . Coins can be stored on an exchange, but a safer option is to store coins in special electronic or hardware wallets. The article on how to choose a wallet for storing cryptocurrencies describes in detail the types of wallets and methods of storing cryptocurrencies.

Conclusion

As you can see, the EOS cryptocurrency does not pursue the goal of becoming the main means of payment on the network. Its goal is to help programmers create unique and extremely useful applications and programs that will be impossible to hack and easy to use. But since cryptocurrencies are not yet widely used, quite a few applications have been created on this platform.

And yet there is no doubt that the EOS cryptocurrency has a great future and therefore this coin is of great interest to investors. Perhaps very soon this cryptocurrency will take a leading position and will be able to compete with Ethereum at the proper level.

EOS cryptocurrency is the main competitor of Ethereum