On June 26, 2022, the EOS cryptocurrency was born.. The creator of the project is considered to be Dan Larimer, whose track record also includes Steemet and BitShares.
Official website: https://eos.io Twitter: twitter.com/block_one_
Daniel Larimer
At its core, EOS and its cryptocurrency blockchain- based operating system designed to support commercial- scale dex applications that provide all core functionality (including databases, permissioned accounts, scheduling, authentication, and handling communication between the application and the Internet).
The previous one was dedicated to the ICN cryptocurrency
Thus, the developers focused on their own business logic. In simple terms, EOS.IO is software that allows companies to create blockchain applications similar to existing web applications using an architecture similar to website infrastructure.
EOS competitor to Ethereum?
However, two promised EOS features really caught everyone's attention:
- elimination of transaction fees (through an ownership model in which users who own cryptocurrency have the right to use resources proportional to their stake, instead of paying for each transaction. In practice, it turns out that in order for developers to use EOS technologies, it is enough to show that they have there are tokens)
- scalability (according to the developers, it can process millions of transactions per second with asynchronous communication and parallel processing)
High transaction costs and poor throughput are critical shortcomings of Ethereum, so these features make EOS a strong contender for blockchain development solutions.
Since EOS is still largely conceptual, it is still based on Ethereum (ERC-20).
Is the EOS platform popular?
EOS originally intended to be a kind of blockchain operating system. The network has already been launched and the first projects have appeared on this platform.
You can check which projects are using EOS on DappRadar. At the time of preparation of the review, there are 346 such projects in total. At first glance, the number is considerable, but many of them do not represent anything serious. Among the most popular, we highlight PRA CandeBox, ENBank, EOSKnights. But keep in mind that not even a year has passed since the launch, and interest in cryptocurrencies has decreased somewhat at this time. This result can be considered quite good.
We also note that after the launch of the network, EOS encountered a number of problems. Above we have already considered the situation with the rising cost of RAM. In addition, in August 2022, a vulnerability was identified that allowed fraudsters to gain access to users’ network resources. It was possible to steal RAM, which is essentially the same as stealing cryptocurrency. The developers dealt with this problem, but this story still had an effect.
Mining EOS. How to get cryptocurrency
The project does not have a mining function; its own development of the DPOS concept excludes the possibility of mining cryptocurrency at all. Apart from purchasing, the only viable option was to receive cryptocurrency through an ICO. Now, in order for the EOS cryptocurrency to appear in your wallet, you can only resort to purchasing it. More on this below.
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Points for and against"
Let's compare the strengths and weaknesses of the EOS cryptocurrency and the system as a whole. Let's start with the advantages:
- Performance
. The name "Ethereum on steroids" is true. Transactions are really fast and free; - No scalability problems
; - Ease of operation
- no need to learn a separate programming language, knowledge of C++ is enough; - The DPoS consensus algorithm eliminates the possibility of centralization
. According to Larimer, DPoS is ensuring true digital democracy; - Taking into account market needs
; - The arrival of prominent functionaries in it also speaks in favor of the project. For example, in 2022, James Mendez came to block.one; he previously worked at Citibank as director of human resources. Former Jefferies Asia CEO Michael Alexander headed the block.one division. There are other examples; specialists of this caliber do not come to weak projects.
Skeptics have a set of arguments that EOS cryptocurrency and the project as a whole have no future. And here are the disadvantages they put forward:
- Dan Larimer's reputation
. In the past, he left projects when they went through difficult periods; - Skeptics consider DPoS to be a vulnerable algorithm
; the problem of crypto centralization does not go away when using it. This point is especially important since Vitalik Buterin adheres to the same point of view. In theory, no one will stop you from buying out a huge amount of EOS and seizing control of the network; - There is evidence of blockchain moderation
. In November 2022, a story surfaced where an arbitrator reversed transactions that had already been completed. In that situation, the user complained that scammers had stolen his private keys. The arbitrator canceled the confirmed transactions, which did not contradict the Constitution
EOS. On the one hand, justice has triumphed, on the other, the arbiter rewrote part of the blockchain; - No guarantee
.
Previously, an interesting study was conducted at multicoin.capital. You can read the original report at the link, and its essence boils down to the fact that there are no guarantees that developers will support the project in the future. The ICO has already ended, a huge amount has been collected, but it is considered proceeds from the sale of EOS . Formally, developers can generally do whatever they want with the money; - Problems using
. We have already noted above that the number of projects on the EOS platform has exceeded 300, but there are no truly large ones among them. Almost 9 months have passed since the launch of the network and during this period at least 1-2 should have appeared.
So far, the skeptics' arguments have not been confirmed. The ICO is over, the network is launched, problems are being resolved.
Where to buy EOS
Top 15 Available Exchanges
Like all other cryptocurrencies, EOS is a leader and is traded on a larger number of well-known crypto exchanges. This includes Binance with its BNB coin, Bitfinex, Livecoin and others. The entire list of exchanges can be found in the menu on the right, where you can also select a trading pair. In order to buy EOS for rubles or dollars, you need to choose exchanges with the ability to trade fiat currency.
History of the development of the EOS cryptocurrency
Let us briefly list the key events in the life of the EOS cryptocurrency:
- May 2022 – At the Consensus conference, Dan Larimer announced the creation of a new project. By this time, he already had a reputation as the author of successful crypto projects, so increased attention to EOS from the very start was guaranteed. The company block.one, registered in the Cayman Islands, is working on the project;
Dan Larimer - June 26, 2022 – start of token sales within the ICO;
- July 1, 2022 – the first stage of the ICO was completed, 200 million coins were sold in 5 days;
- June 2022 – ICO completed. 100 million coins remain the property of the developers, as was intended at the start of the initial sale of coins. In total, they managed to raise more than $4 billion;
- June 9, 2022 – launch of a test network, testing it for vulnerabilities;
- June 14, 2022 – EOS .
EOS plans and prospects
In addition to the pros and cons of the project outlined below, it is worth noting that the team is placing emphasis on expanding computing power, which should lead to an increase in network throughput.
Now this figure is already fluctuating around 6,000 transactions per second, while it is planned to raise the pass to the millionth level, completely eliminating transaction fees
The idea of this currency is maximum decentralization. Nodes also create blocks, which will then be included in the chain. Blocks are created in a random order. Delegates' rights are limited to creating blocks and including transactions in them. The nodes do not affect the transaction process or the operation of the network.
Despite the positive aspects described, EOS also has many critics.
Critics' arguments:
- The authors of EOS have not yet even presented a beta version of their product.
- Lack of mechanisms for investors to influence the project.
- A large number of competitors. The main one is Ethereum.
- Criticism of EOS creator Dan Larimer. It is known that Larimer left the BitShares project immediately after problems with linking to real assets appeared.
Proponents' arguments:
- The authority and fame of the developer, whose name, despite the dark spots of his reputation, is associated with several successful projects.
- The technical advantages of EOS include scalability, parallel execution of applications, and asynchronous communication.
- The company announces its readiness to invest $1 billion in the development of decentralized applications.
- High transaction speed (higher than Bitcoin and Ethereum) with lower transaction costs
- Growing popularity. The company has already raised large amounts of money through the ICO. At the same time, fundraising continues.
Team and community
The EOS project is being developed by Block One, led by Dan Larimer (co-founder of the super successful projects Bitshares and Steemit ) and Brendan Blumer. Both have serious experience and weight in the crypto industry, as creators of successful projects. In addition, Block One employs more than 35 experienced developers with many completed projects under their belt.
The EOS team is moving forward according to the Roadmap they published in 2022 and have now successfully achieved many key development milestones. Their first release, EOS Dawn 1.0, came out on September 14, 2022. The second release of EOS Dawn 2.0 (December 4, 2017) provided resource control and communication between blocks. OES Dawn 3.0 was released on April 4, 2022 and a lot of functionality was added to it that was not even in WhitePaper. The release of EOSIO 1.0 was released in the summer of 2022 and became the first official version of the operating system. Many predict a bright future for the project. Definitely, this asset should be in your investment portfolio.
EOS has one of the largest and most active communities in the crypto world. There are many local sites, channels and communities on social networks. All this indicates investor trust, as well as a well-built relationship between the team and the community.
Key EOS Resources:
- Official website https://eos.io/
- Github https://github.com/eosio
- Steemit https://steemit.com/@eosio
- Medium https://medium.com/@eosforumorg
- Twitter https://twitter.com/eos_io
- Telegram Telegram group
- Facebook https://www.facebook.com/eosblockchain
Beginning of work
This article does not use a local EOS node.
While it's fairly easy to create, we'll be connecting to the API of one of the 21 block producers for simplicity's sake. To work with the API, you need to install several local applications. The main one is cleos
, a command line utility for signing transactions and generating API calls.
, Docker is the best choice for installing cleos
Here's what to do:
# Download the EOS Docker image: docker pull eosio/eos-dev # Run the keosd tool in Docker: docker run —rm —name eosio -d -v ~/eosio-wallet:/root/eosio-wallet eosio/eos-dev / bin/bash -c 'keosd' # For convenience, create an alias: alias cleos='docker exec -i eosio /opt/eosio/bin/cleos —wallet-url https://localhost:8888 -u https://api. eosnewyork.io:443′ After executing these commands, you can connect to the Mainnet. Try entering the following: cleos get info If the result is something like the picture below, then everything is done correctly!
Resource Allocation
Now a few words about how resources are allocated and why accounts are not free.
Unlike Ethereum, Bitcoin and other blockchains, EOS does not charge transaction fees.
Instead, anti-spam protection and resource allocation are regulated through staking and the RAM market.
Accounts use three types of resources:
- Network traffic and disk space for logs - staking
- Computing power and reserves (CPU) - staking
- RAM - buying on the market
The first two resources (network traffic and CPU) are allocated in proportion to the amount of tokens in the three-day staking contract.
Let, for example, the total computing power of the network be 1000 CPU units. If you want to use 10 CPUs in these three days, then you must have 1% of all tokens in the staking contract. In other words, you compete with other users for available CPU resources, and the higher your bid compared to others, the more resources you will receive.
Over time, the used CPU and network resources will be released and you will be able to reuse the same tokens. For example, if you have no transactions for 3 days, your resources will be completely freed and you will be able to use them again even without staking additional tokens.
Not so with RAM. It must be purchased at the market price, which is determined by the relationship between supply and demand.
RAM is allocated for the data that accounts store in the blockchain. For example, RAM is needed when creating an account in order to make an entry about it.
Unlike CPU and network traffic, RAM is not automatically released. To clear it, you need to delete data from memory. The cleaned RAM can then be sold at the market price.
It is worth noting that to obtain CPU and network resources, you can stake your own EOS, or others on your own behalf (if they have been delegated to you). Delegation is not a gift, but rather a temporary use: the owner of EOS has the right to take it back.
The same is true for RAM, but it can be donated if you transfer it from one account to another - you won’t be able to forcibly take it away.
"Four Pillars"
In his speech, La Rose expressed hope that the relatively new EOS Foundation could take control of the project's narrative and branding to counteract the disarray caused by decentralization.
“Our problem was not decentralization, but lack of centralization. A centralized entity that could support the ecosystem in a way that only a centralized entity could,” the transcript reads.
He then proposed four “pillars” that would guide the project forward. Each pillar (branded Audit+, Wallet+, Docu+ and API+) currently has a working group, and each will prepare a "blue paper" that will collectively serve as a roadmap for the project's progress, with a target publication date of "before the upcoming Chinese New Year of the year".
New investments
LaRose claims that the project has been approached by venture capital firms looking to place more than "$150-$200 million" into the ecosystem, and that the EOS Foundation is ready to help leverage that capital after receiving $7 million in grants.
The speech then ends with La Rose finally claiming leadership of the project.
“I’m not here to be liked, I’m here to do a job. At EOS we lacked leadership. Someone who will lead by example and work for the good of us all every single day,” LaRose concludes, quoting one of his recent tweets.
Forecast for the future
Every month, the Chinese Center for Information and Industrial Development (CCID) releases a ranking of the world's best cryptocurrencies. The center evaluates the underlying technology, creativity and usability of digital money. For several months in a row, EOS has topped the list, ahead of Tron and Ethereum. Bitcoin takes places from 10 to 13 in these races.
Since China and Asian markets are the most stable in terms of positive attitude towards “Internet coins”, this is a good sign for EOS. The high rating from Chinese regulators suggests that it is possible to invest in it.
This rating is an indicator of growing interest in tokens, which are not only digital money, but also functionally expand the scope of cryptocurrencies.
Wallets
In the EOS network, as in any other blockchain, each transaction must be signed with a private key before sending.
Your keys are stored in a local wallet. There is no wallet initially, so let's create one.
# don't forget to save the displayed password - you need it to unlock the wallet and view the private keys cleos wallet create This command creates a wallet named
default
.
Let's check if it contains keys:
cleos wallet private_keys
!!!
ATTENTION!!! The default wallet contains the following pair of public and private keys EOS6MRyAjQq8ud7hVNYcfnVPJqcVpscN5So8BhtHuGYqET5GDW5CV / 5KQwrPbwdL6PhXujxW37FSSQZ1JiwsST4cqQzDeyXtP79zkvFD3 . Never use this pair: it is hardcoded into the source code and is unsafe.
Let's create a new key pair: # create a new key pair cleos create key # import the private key into the wallet cleos wallet import ${private key you just generated} The wallet is automatically locked after 15 minutes of inactivity. To unlock, enter: cleos wallet unlock Now the wallet is fully configured. Let's move on to the accounts.
Conclusion
EOS is a commercial-grade blockchain designed to support millions of users through a delegated proof-of-share system. The platform software introduces a new blockchain architecture that facilitates vertical and horizontal scaling of decentralized applications. The end result is an operating system-like platform on which decentralized applications can be built.
Some of the key features of the platform include accounts, authentication, databases, asynchronous communication, and application scheduling across hundreds of CPU cores or clusters.
Additionally:
- Decentralized Blockchain Governance (Daniel Larimer) from 06/23/2018
- EOSIO Dawn 3.0 is now available
- Romance of the 21 Kingdoms of EOS (In-depth analysis of the current state of the Block Producer model in EOS ) from 04/05/2018
- EOS MANUFACTURER CANDIDATE WEEKLY REPORT
What else is worth reading
You now have everything you need to interact with the EOS Mainnet, publish transactions, and create distributed applications.
The links to resources below will help you further your work. If you know of other useful tools, please suggest them in the comments.
- Official EOS Documentation
- Official repository on Github
- EOS Browser
- List of API endpoints for block generation
- SDK for Node.js
- Scatter wallet (i.e. MetaMask for EOS)
- Dan Larimer's (EOS creator) Medium profile
- RAM market monitor
Accounts
Unlike Bitcoin and Ethereum, where the public key is the account from which transactions are sent, EOS implements a different principle.
It is closer to traditional web applications. You create a 12-character personalized account in EOS, for example eocentralio
, and the private key will be the password to the created account.
This is a somewhat simplified description - everything is explained in detail in the official EOS documentation.
There is one “but”: it is impossible to create an account unless you have another account with a certain amount of EOS. That is, to interact with the network, you need to ask a user who already has an account to create an account for you.
And it's not free! What??
Yes, yes, the classic “chicken and egg problem”, and it has to do with how resources are allocated in EOS. More on this below.
As a result, services have appeared that offer to create an account in EOS for a modest fee.
Articles with detailed instructions have already been published, but I cannot recommend any service, since I have not used any of them.
