EOS: The Solution to the Problem of dApps on Blockchains
EOS is the cryptocurrency utilized for the prospective EOS.IO platform. This platform aims to create, host, and support decentralized apps (dApps) on a single blockchain. It has similar functions to an operating system of a computer which has a ready-made set of resources and services that developers can use for their apps.
As an altcoin, EOS serves as the fuel that allows dApps to run on the network. Although it is a cryptocurrency, it is not meant to be a unit of currency like Bitcoin. Rather, it shares similar functions as Ether, the token that powers the Ethereum network. To create a dApp on the network, developers need to pay transaction fees to execute their app’s operations on the blockchain. The network then calculates transaction fees based on how much EOS the action requires.
The EOS system launched in 2017 as an initial coin offering. Although EOS’s blockchain platform is still under development, the EOS token distribution already started in June 26, 2017 and will end the following year. But even if there is not yet any platform readily available, investors have already bought EOS tokens in major crypto exchanges. Read on to see what is exciting about the crypto coin and its platform.
4 Benefits of EOS
Although there are blockchain-based networks already existing on the market, EOS has benefits that these other networks do not have. These benefits are:
Ready-Made and Flexible Platform for dApps
EOS.IO is a ready-made platform on which you can create apps. Apps can use common functions that make development faster and less technical. Some of these functions include user name-password registration, user interfaces, and database management. The network also allows you to add features to your dApps as you see fit for your business or project.
Efficient Support of dApps
EOS includes key usability features that make will make it easier for you to develop and maintain your app. These features include a web toolkit for interface development, self-describing interfaces, and a declarative permission scheme. It also provides services like user authentication, cloud storage, and server hosting.
Fast Transaction Speed
The EOS network can scale up to 100,000 transactions per second (TPS) compared with Bitcoin which can process up to seven TPS only. This fast transaction speed allows the network to handle thousands of dApps running on the platform. Hence, users will enjoy instant transactions on EOS.IO apps.
Free Usage for Users
Although you need EOS coins to buy your resources on the blockchain, these resources do not cost much. This gives you the choice to charge your app users with little to zero transaction fees, or to come up with other strategies to earn through your app.
With these features, the EOS has benefits that can potentially solve the problems of blockchain-based networks. Still, keep in mind that the platform being formed powered by EOS is not yet released, so crypto investors will only experience these benefits upon EOS’ official launch.
EOS vs. Ethereum: Which is Better?
With the features EOS offers, it is no surprise that crypto users compare it with Ethereum (ETH). In fact, these users refer to this crypto coin as “Ethereum killer.” Although both EOS and ETH provide the same services, there are stark differences. The former claims to be the better cryptocurrency. Here are the reasons why:
The Ethereum network is designed as a neutral platform for all potential applications. While this reduces the bloat among apps, the lack of common functions requires developers to reuse code for their own apps.
In contrast, EOS recognizes that many dApps require the same types of functions. By providing ready-made functions like user name-password registration, developers can focus on creating only business-specific functions for their apps.
The significant difference between EOS and Ethereum is how they validate transactions on the blockchain. Ethereum mining involves proof-of-work mechanism in which miners compete against each other to solve cryptographic puzzles and thereby produce new blocks on the chain.
Meanwhile, EOS uses delegated proof of stake in which a number of users are voted by fellow crypto holders to sign a block and receive rewards. This does not require miners to buy specialized equipment or to compete against fellow miners.
Tests showed that Ethereum can process up to 25 TPS. On the other hand, EOS’ early stress tests reveal that it can handle up to 100,000 TPS. With EOS being able to handle a huge amount of transactions, users can enjoy instant payments and processes.
Security Against Denial-of-Service Attacks
Crypto miners, especially in the Ethereum network, preferentially select high-fee transactions to add to the blockchain. This becomes a disadvantage because spammers who pay high fees can use a single app or a smart contract to freeze the entire network.
In contrast, the EOS team ensures that the network is not vulnerable to denial-of-service attacks. Once users own a token, they get a proportional stake of the network’s bandwidth, storage, and computing power. Therefore, spammers can only use a part of the network that their EOS coins allow them to.
Although EOS may have its advantages, it is too early to say if the altcoin and its platform can beat Ethereum. After all, EOS is still in development stage, while its competitor has been around since 2015. It will take a while before crypto holders can see if EOS can truly “kill” Ethereum on the market.
What to expect from the EOS Platform
Since the launch of Bitcoin, entrepreneurs and developers have started to show interest in running dApps on blockchain platforms. This is because dApps provide a faster, more efficient, and more affordable way of processing and storing big data compared with centralized apps. But it is not easy to find a platform that can support thousands of dApps because it must have features comparative to what the EOS platform highlights, including the following:
The blockchain platform should be able to accommodate millions of users every day. Without that capability, dApps are likely to slow down or crash. Furthermore, the platform must be able to process thousands of transactions per second and to handle all the dApps running at the same time in its network.
Developers need the flexibility to offer other apps for free. Users should not have to pay to use the platform and to benefit from its services.
Easy Upgrades and Bug Recovery
Businesses need the flexibility to add new features to their dApps. On the other hand, the platform must be able to quickly fix bugs should they occur in the network.
Zero Delays in Transactions
It is important for app users to experience little to no delays in their transactions. Thus, the blockchain platform must make sure apps can provide instant transactions to their users.
While there are a few blockchain networks that meet these requirements, businesses and developers face challenges such as large fees and limited computational capacity. In order to solve these problems, EOS.IO supports all the required core functions to allow users to create dApps in a way similar to how web-based apps are created.
EOS is a promising new addition to the dApp platform space. It has huge potential as it aims to address the problems of dApps on the blockchain. But even if it promises better features than its competitors, you should keep in mind that the platform has not yet been launched. You must still exercise caution before investing in this altcoin.