Bitcoin Developer and Educator, Jimmy Song, has allegedly termed EOS a “scam” and warns the newbie that “it will die in a horrible dumpster fire in the next five years!”
So what made a Bitcoin maximalist outburst against the $4 billion worth ICO’s convictions?
What is EOSIO- An Introductory guide
EOS is an operating system (or software) and blockchain which is specifically designed by block.one to build and scale Decentralized Applications (DAPPs) or as CEO Brendan Blumer calls them- “Decentralized Autonomous Communities (DACs).”
This is made possible through the implementation of asynchronous smart contracts. Such that the DACs so built shall be highly resilient, self-sufficient and shall empower the community. The blockchain started releasing its crypto currency tokens in the form of a pompous sale and of course airdrops from 1 June, 2017.
EOS- The family background
Although, it’s just been a year since the big giants began rolling out the red carpet for EOS (aka fund-raising), it seems EOS secretly relishes a rich experience of 12 years.
Reasons- CEO Bendan Blumer and CTO Dan Larimer have fostered long-standing blockchain projects like Steemit, block.one and BitShares. In fact Blumer developed a website to sell virtual assets in the multiplayer online gaming space named GaMeCliff. Perhaps, EOS wasn’t an overnight dream project rather a sharply calculated future investment.
Basis Model- DPOS
EOS blockchain is constructed and secured by the Delegated Proof of Stake (DPoS) algorithm which is a proposed solution to the underpinning issues of Bitcoin’s PoW and Ethereum’s hybrid Caspian model.
DPoS mitigates the potential negative impacts of centralization through the use of witnesses (formally called delegates). DPOS eliminates the need to wait until a certain number of trustless nodes have verified a transaction before it can be confirmed; consequently increasing the speed per transaction.
Unlike other methods of securing crypto networks, every client in a DPOS system has the ability to decide and vote for the most trusted rather than trust concentrating in the hands of those with the most resources. This way the elected delegates (customarily known as Block Producers) shall hold the right to validate transactions over the chain with themselves being a significant thread of the entire yarn.
Currently Bitcoin and Ethereum blockchain take a sizeable volume of 10.6 min and 4.9 min resp. to verify a single block. Besides, the “miniscule” number of transactions undertaken stand at 3 transactions per second for Bitcoin and 10 transactions in the case of Ethereum blockchain.
By leveraging DPoS, EOS claims to skyrocket these numbers to a “million transactions done per second”, as quoted by Blumer at a conference.
In addition to DPOS, EOS.IO adds asynchronous Byzantine Fault Tolerance (aBFT) for faster achievement of irreversibility. The aBFT algorithm provides 100% confirmation of irreversibility within 1 second.
Trading RAM- The EOS way
The anomaly of the EOS structure is the fact that besides offering a bandwidth staking of the EOS coins, a newfangled way to attract the crypto enthusiasts is- RAM trading. RAM is a pre-requisite for a new entrant into the EOS network, in order to build DACs/ DAPPs.
The intention of the RAM allocation model was to make transactions free; Larimer explained that this shift was a way of financially incentivizing users to “sell” any of their unused RAM. The price of RAM would be dependent on a simple supply and demand model.
However, this market soon invited hoarders in anticipation of future shortage of RAM. Indeed, prices of RAM per MB for EOS have been on a rollercoaster ride since we entered October. A look,
Releases and Collaborations
A recent announcement by Block Producer App Coalition (BPAC) comes as a cherry over the cake for the EOS network. BPA, a global alliance of EOS app developers, announced that as an elected block producer it will invest 100 percent of its profits back into the ecosystem.
BPAC represents the stakeholder community of the EOS smart contract developers.
Adding strength to this back, a German publicly listed company- Advanced Blockchain AG recently announced its candidacy to become one of the 21 Block Producers of the EOS Blockchain network.
With this in mind, Advanced Blockchain AG is joining forces with nakamo.to to form EOS network, an EOS Block Producer candidate with a DLT pedigree and headquarters in the crypto-capital, Berlin, Germany.
“The chance to be an EOS Block Producer is an excellent opportunity to extend our contribution to an industry we love and believe in. An opportunity to help nurture the technology as it continues to evolve and begins to impact our organizations, societies and daily lives”, a statement read on the steemit post by Advanced Blockchain AG.
What’s the hype all about?
Cherishing a solid global patronage, it’s been about a month since the EOS MainNet software has been made open to the public from 7 June 2018. Around $ 4 billion has already been raised through the ICO process over the block.one and ethereum blockchains.
The price of EOS has not been spared of the Sept rollercoaster ride – settling in for $5.53 (ATOW). Speculations regarding the price of RAM seem to be the latest trend among crypto geeks.
Here’s a thought to chew over, provided that an evident real-world use case of EOS is yet to be acknowledged, is it possible that the “built-over-hype-price” of EOS may ultimately land us into a yet again centralized blockchain trap? Or will this ever be able to actually solve any traditionally centralized muddle?