The EOS User Guide - Part 2 - Why EOS?
Written by Kenny - theEOSwriter
Artwork by - Yusaymon - PixEOS
A comprehensive list of reasons why EOS is light years ahead of the competition…
The number 1 roadblock in the way of cryptocurrencies reaching mainstream adoption is scalability.
EOS is well on the way to solving the scalability issue, as you can see from the figures below EOS is literally running laps around the competition. The top 5 most active cryptocurrencies listed here all run on the EOSIO software created by Dan Larimer and Block.one.
EOS is also designed at it’s core to utilise a technology called Inter Blockchain Communication which links multiple EOS Blockchains together. Once IBC is implemented EOS will be able to reach millions of TPS. This is what the real world (visa, facebook ect) demand.
What is the point of a blockchain if everyday people can’t use it?
EOS is the only cryptocurrency which uses human readable account names, this allows people to send and receive funds by sending them to an account name they can easily remember. So if Mary wants to send money to John, she can simply enter John’s EOS account name (johnsmith123) and send away. No 35 character mess of letters and numbers like 1BoatSLRHtKNngkdXEeobR76b53LETtpyT to triple check and stress over. EOS even has custom account name suffixes, for example john.x or mary.eos and who knows how much some of these custom names will be worth in the future!
More information about custom EOS names can be found here - https://www.eosnameservice.io/
Block.one (creators of the EOS.IO software) are also working on a mobile hardware wallet for EOS which will utilise the iPhone X’s Secure Enclave chip and biometric ID (facial recognition) to create the most secure and easy to use cryptocurrency wallet the world has ever seen.
The blockchain technology on which cryptocurrencies run is un-hackable. The creator of Bitcoin (Satoshi Nakamoto) has had over 980,000 Bitcoins ($4 Billion USD) sitting in his/her account for nearly 10 years. But lose your private key or enter it into a dodgy website and you can kiss your hard earned funds goodbye.
EOS has made great progress towards solving this problem with dual Active and Owner Keys and the ability to stake your tokens. You have the option to set up alerts for your account which will notify you when an action is made on your account, given that it takes 3 days to “unstake” your tokens this buys you time to take action if your account has been compromised.
Has Free Transactions
Who is going to pay to like a post on facebook, view a video on youtube or send money to John?
EOS is one of the first cryptocurrencies to incorporate fee-less transactions. In comparison Bitcoin costs on average $28/transaction and Ethereum $4/transaction. You can make a case for Bitcoin as a store of value (digital gold) to warrant the $28/transaction, Ethereum on the other hand...
On EOS you pay a once off account creation fee of around $1 (this buys you resources on the network). You are then entitled to free transactions on the EOS blockchain for the rest of your life.
Oh that Bitcoin thing uses too much energy!
You’re right it does, EOS on the other hand is the first and only carbon neutral blockchain.
Read more about this achievement in an article we wrote here.
If something can not evolve it will become extinct…
One of the most genius aspects of EOS is it’s flexibility and ability to evolve. A blockchain which can’t change and adapt to the future will simply be replaced by a better version.
Dan Larimer (CTO of Block.one) has designed EOS with this in mind. If a major bug or security risk is found they can simply freeze the chain and fix the issue. As new ideas and technology evolve they can also be incorporated into the system through a voting process. In the same situation blockchains like Bitcoin and Ethereum need to “hardfork” (create a new version while the old lives on). This divides the community, dilutes the currency and and creates instability.
Has It’s Own Governance
Ever tried to live in a society without a government?
EOS has it’s own on-chain governance and is run by 21 block producers who are paid by inflation to run, maintain and secure the network. Token holders vote on which block producers they would like to run the network and changes to the chain can be proposed and implemented by voting through a referendum. EOS governance could well become a blueprint for future governments to follow.
More decentralised than Bitcoin
But EOS is centralised right?
No blockchain is truely decentralised, it’s a relative term. Many like Bitcoin claim to be but this is not the reality of the situation. Bitcoin is run by 4 major mining pools who have control of the network. This is not truely decentralised by any stretch of the imagination. EOS on the other hand is run by 21 block producers, no one party can ever own more than 10% of the token supply. This ensures the system can never be totally controlled or corrupted unlike its counterparts.
What is an airdrop?
An airdrop is a way of distributing tokens/coins of an upcoming project/DApp among users of the EOS mainnet. Basically you receive free tokens from EOS projects intending to run on the EOSIO blockchain.
Below are some EOS projects which have utilised the Airdrop model to distribute their tokens.
Who’s behind EOS?
Dan Larimer and Block.one
During the companies 1 year long ICO (Initial Coin Offering) Block.one managed to raise 4 billion dollars. This makes it the most successful ICO of all time. Of the 4 billion raised so far Block.one has reinvested 1 billion into VC (venture capital) firms to help develop and grow upcoming projects on EOS. You can bet the other $3 billion will also be used to fuel the rocket which will launch EOS into the mainstream.
Learn more about Block.one here - https://block.one/
Dan Larimer is The Man behind the EOS.IO software and he’s got quite the resume behind him. From having communications with Satoshi on the early Bitcoin forums and actually voicing his concerns about the scalability of Bitcoin (which has now come to fruition) to having created the software on which the top 5 most used blockchains in existence run on (see chart below).
Below is his life’s mission statement and I highly recommend you check out his presentation at Virgina Tech.
“To find free market solutions to secure life, liberty, property and justice for all.”
Follow the money…
Peter Thiel, Mike Novogratz and Jihan Wu…. google them. Oh yeah and the CFO of the Commonwealth Bank Australia quit his multi-million dollar position to join Block.one (creators of EOS.IO software).
Is the heart of EOS
The people within the EOS community are the most welcoming, helpful and genuine I’ve had the pleasure of meeting online. Aligned incentives create a strong sense of community which spurs on the growth and development of the EOS ecosystem.
One of the best ways to educate yourself on EOS is through YouTube. There’s a great group of EOS community members discussing and sharing new features, improvements and ideas.
View our video page for a list of all the best EOS YouTube channels… https://www.theeoswriter.io/video/
Not convinced yet?
If somehow you’ve made it to the end of this article and still have doubts as to why EOS is destined to reach mass adoption, here’s a little more convincing from Rob Finch, Cypherglass BP (block producer).
So now you understand why EOS the next question you might ask is “how do I use EOS?”
Read Part 3 “How to use EOS” here.
Disclaimer: The information provided in this article is for educational purposes only and should not be treated as investment advice. I am not a financial advisor, and I am not giving financial advice. I encourage you to conduct your own research and/or consult with a licensee financial advisor before making any investment decision. Cryptocurrencies are a new digital asset class that are highly speculative and risky.