Originally billed as the Ethereum Killer at its ICO, EOS keeps seeing the spotlight on it, and not for the best of reasons. Too centralized, falsely democratic and not frankly secure according to its detractors, the EOS blockchain has already been the victim of numerous hacks. How did this project led by Daniel Larimer, the “dad” of BitShares, Steemit and the DPoS protocol, get there? Back on the history of this project supposed to allow the advent of blockchain 3.0.
A project driven by great ambitions
Ethereum with its smarts contracts gave birth to the theoretical concept of blockchain 2.0. Although Ethereum is one of the best known blockchains, it remains relatively little used for fast transactions at low cost. This slowness is explained by its low scalability (ability to scale up) due to its consensus algorithm Proof Of Work (PoW).
Aware that the global adoption of the Blockchain will take place when it is easy to access, energy efficient and scalable, many projects are working on these subjects, strategic if any.
It is thus with the desire to become the largest decentralized blockchain in the world that the project’s ICO EOS see the day.
An unusual ICO
Launched on June 26, 2017, through the company block.one, the EOS ICO will not end in the following 2 months as it was common at that time, but almost 1 year later! The June 1, 2018, EOS obtains the title envied (and still not equaled) by biggest ICO of all time with almost $ 4 billion of harvested. The blockchain of the project is launched two weeks later on June 14.
The EOS goal
EOS presents itself as a versatile project accessible to everyone.
Since the average user has no reason to go through a slower technology than the one he is already using, it is inconceivable to have a lower scalability than the current banking system.
Bypassing the classical consensus algorithm of blockchain 1.0 and 2.0 and by choosing to use the Delegated Proof of Stake (DPoS), EOS claims to be able to carry out nearly 1 million transactions per second. This speed is explained by the low number of actors (21 delegates) to validate the blocks containing the different transactions.
The DPoS algorithm, being less energy-consuming, is supposed to allow easier adoption of the “classic” Blockchain, which faces the daily question of energy management. EOS is on the developer side by accepting many programming languages and allowing advanced customization of smarts contracts.
TheEthereum Killer is also on the side of the novice user by removing the complex mechanics of Ethereum that are the Gas, le GWEI and the management of fees !
At this point, it is worth remembering that today many people are “crypto-phobic” for two reasons:
- They do not understand the meaning of the esoteric numbers and letters that make up their wallet.
- They are scared of lose their credentials and not being able to ask them again from an employee.
EOS solves these two problems thanks to the creation of a wallet with an identifier anchored in our reality and the possibility of recovering your private keys in the event of loss. A blockchain with so much power imposes great responsibilities and therefore a solid team. Is this the case for our Ethereum Killer?
The team / iconic faces behind the project
Unlike many projects, the EOS team has members with a solid crypto-background. The two most important members are undoubtedly the co-founders of EOS:
- Brendan Blumer, early investor in the blockchain and founder of many companies such as okay.com, one of the largest luxury real estate websites in Hong Kong.
- Daniel Larimer, highly regarded member of the crypto community, he is known to be the founder of Bitshares one of the oldest decentralized exchanges, and of the social network Steemit and its cryptocurrency the STEEM, which we will discuss in another article. He is also the inventor of the consensus algorithm Delegated Proof of Stake (DPoS), used by the EOS blockchain.
These two people carry the project and partly explain the amount raised during the EOS ICO.
As we have seen, EOS, proud representative of the blockchain 3.0, could recover the queen’s crown shortly Ethereum.
By removing unnecessary items for first-time users, EOS makes it easy to adopt the Blockchain. When publishing a project on the EOS blockchain, developers are also required to publish a ” ricardian contract ». This contract is a readable version in English of the project, thus allowing all users to understand its ins and outs. In these times of regulation, orchestrated by individuals without the adequate knowledge, such an initiative is commendable.
However if the project seems attractive on paper, difficult to ignore some annoying faults (and even downright prohibitive according to the most virulent critics!).
So, if the EOS blockchain is undeniably faster thanks to its architecture, its security is reduced and his increased centralization, in accordance with the principles established by the blockchain trilemma. We have witnessed hacks of several hundred thousand dollars in recent months. In addition, far from the million transactions announced, infrastructure can currently only support 4000 transactions, and still under very specific conditions.
Even though 21 players are qualified to add the blocks to the EOS blockchain, it is easy to envisage simpler system corruption. The delegates receiving rewards intended to become more and more consistent over time and the value of EOS corners, want to stay in power. Once in power, they can decide to block users for the reasons of their choice without having to consult the community. Can we objectively under these conditions assert without laughing that the EOS blockchain is democratic?
As we have seen, the EOS team is certainly experienced, but Daniel Larimer having left many projects on the way, and promised mountains and wonders in the past, has become a kind of Peter molyneux crypto.
Where to buy EOS coins?
With a volume of almost $ 3 billion, a listing on more than 400 exchanges and a ranking 7th place sure coinmarketcap.com, it will be easy for you to get EOS.
If you want to buy large amounts, it will be easier for you to go through exchanges such as Coinbene, BKEK or BW.com who alone own more than 10% of the trading volume.
If you are a newcomer to the crypto ecosystem and want to buy EOS for euros or dollars, it is best to use Kraken, CoinBase or Bitfinex.
If the EOS Blockchain claims to have killed Ethereum, the reality is quite different. Full of good theoretical intentions, it suffers in fact from security and transparency problems. Nevertheless, it is better not to bury the prince too quickly and see if he will arrive in the next few years, to ascend the throne.
Student engineer, Community and Bounty Manager, I have been sailing on the turbulent oceans of the blockchain since 2017.
Realizing that blockchain will change our future, I too want to participate in the revolution. Find me on Bitcointalk and on LinkedIn