From Outta Nowhere
Who could've imagined a late-night comedian satirizing the native cryptocurrency of a decentralized application blockchain-builder platform? EOS made waves when it came outta nowhere to reach a $4 billion market cap and position #9 in the overall crypto market in just 9 months. Innovations in speed and scalability along with a unique economic model may give the the nascent blockchain-builder platform a significant edge over the Ethereum juggernaut.
The recent ICO chill due to all the subpoena-issuing and regulatory bla-bla has driven crypto prices down across the board, and has understandably hit the blockchain-builder sector particularly hard, since these are the native currencies of the platforms on which ICOs are built;
Over the past 30 days, Ether and NEO are down 40%, and Cardano is down 50%. While crypto markets are struggling to stage a recovery, EOS has jumped ahead of the blockchain-builder sector, gaining 7% over the past week. It is the second-best performer of the top 10 cryptocurrencies over the past 200 days, with a return of 372%.
Fastest Dapp Platform
Founded in July of last year with the goal of becoming the fastest platform for Dapps, EOS boasts the ability to process an impressive 50,000 transactions per second. According to developers, the Delegated Proof of stake (DPoS) protocol of the EOS blockchain has the potential capacity of 100,000 transactions per second.
The most significant edge that the EOS network will have over Ethereum is that of scalability. Currently, the Ethereum network is limited by the single-threaded performance of a CPU, but EOS will use parallelization to scale the network, perhaps up to millions of transactions per second.
If this level of scaling is achieved, EOS is likely to become the platform of choice for commercial scale Dapps, giving big companies and startups alike the ability to develop advanced blockchain applications and comfortably support thousands of such apps at a time.
Unique Economic Model
Block.one, EOS's development firm, has eschewed the "gas-burning" model of Ethereum in favor of an ownership stake. This is a clever move because every calculation, storage operation, or use of bandwidth on the Ethereum network comes at a cost in Ether. This puts startups at a disadvantage - requiring them to burn through funds as they develop and deploy their apps.
EOS will employ a different model, whereby token purchasers gain access to a fixed percentage of network resources, regardless of the load on the rest of the network. So startups and early stage developers can work with predictable bandwidth unencumbered by mounting fees until they are ready to scale up at which time they can purchase access to a larger percentage of the network.
With zero transaction fees, the initial investment in EOS tokens will be a fixed development cost.
Tokens themselves are generated without a mining farm, using a Delegated Proof of Stake protocol. New tokens are created when a specific number of blocks are generated, their numbers varying based on a median bid of block producers. The total number of tokens will not increase by more than 5% annually. There are currently 740 million EOS in circulation.
Fixing Broken Apps
A research report entitled "Finding The Greedy, Prodigal, and Suicidal Contracts at Scale" found that 3.4% of one million smart contracts analyzed on the Ethereum network were susceptible to bugs because of bad code. The research group from SIngapore and Britain found 6,239 Ether ($7.5 million) locked inside dead contracts of which 313 Ether had been sent after the contracts had been killed. Vulnerabilities exposed included:
finding contracts that either lock funds indefinitely, leak them carelessly to arbitrary users, or can be killed by anyone
All of these technical advantages, along with skyrocketing valuations, have made EOS the most talked-about ICO in the blockchain sector. EOS's market capitalization of over $4 billion has elicited more than a few sardonic eye-rolls and led to this scathing late-night parody by John Oliver:
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