What is the EOS Token?

What is the EOS Token?

EOS is the native crypto currency of the EOS.IO block chain. The EOS Token is needed to access the EOS network, which is an operating software for dApps. What is impressive about EOS is the size of the decentralized network and its scalability potential.

The EOS network was founded in June 2018 by Block.one, and launched by Dan Larimer and Brendan Bloomer. The EOS Token was offered to the public one year earlier, in June 2017.

At the time of writing this report, June 2020, EOS is currently in 9th place in terms of market capitalization. At the end of April 2018, the EOS Token reached its highest price to date, at USD 22.89. At the time of writing this article, however, the price of the coin is USD 2.67.

Larimer, the creator of the block chain, is known for helping to establish Bitshares and Steemit before the EOS project began. He also helped develop the concept of the Delegated Proof of Stake.

Why was EOS invented?

EOS was founded to develop a decentralized platform for creating dApps that has never been seen before on this scale. And not only that, it hopes to scale to a size where it will have no competition.

EOS is similar to Ethereum, but Larimer and Bloomer felt that there were a number of aspects they wanted to improve, so they invented EOS. Their stated goal was that EOS should be able to handle millions of transactions per second without incurring fees. This is something that Ethereum simply does not offer. EOS tried to achieve this by using a delegated PoS (Proof of Stake) system for transaction approval.

The variety of dApps available on the EOS network is amazing. They range from games and casino dApps to some dApps whose aim is to contribute to universal healthcare using block chain technology.
How does EOS work and what technology is behind it?

EOS works according to a DPoS consensus, where 21 people are selected daily as validators for transactions. These 21 delegates are elected by the community. This has a number of advantages. First, the delegates are accountable for their actions, because if the community is not satisfied with their performance, they can be voted out. Second, the validation of transactions by a small pool of validators takes very little time. Any potential problems that may arise from a small group of voters are neglected by the daily re-election,

The EOS supply has an inflation rate of 5%, 1% of which goes to the validators at the end of the year. This gives them incentives for their efforts throughout the year and thus helps to maintain their performance.

With the Delegated Proof of Stake protocol, the potential for scalability is enormous. Regardless of the size of the EOS community, the small number of daily delegates for block validation will allow the speed of transactions to be kept incredibly high. By paying the block validators with a portion of the EOS’, the need for transaction fees is eliminated.

Is EOS real money?

EOS tokens can be used to exchange for other crypto currencies or as a store of value. As such, they could be regarded as ‘real money’. However, their true use lies within the EOS network. The more EOS Tokens you own, the greater the claim you can make on the network. The tokens can also be used to interact with dApps.

Fees and costs of EOS

EOS transactions are free of charge. However, it should be noted that if you purchase the tokens through a third party, fees will be charged. You can use the world’s largest social investment network eToro or any other crypto currency exchange to purchase EOS Token. The markup for buying EOS on eToro is 2.9%.

EOS Advantages

  • Infinite scaling – according to EOS the network as a potential for almost infinite scaling. This is because the DPOS system is capable of potentially millions of transactions per second, regardless of how large the network grows. This is because the pool of validators remains small and efficient even as the network grows.
  • Most popular dApps – dApps based on the EOS block chain are more popular, are used more often and have a higher transaction volume than their rival Ethereum. This is partly due to the fact that ownership of the network has been transferred to EOS owners.
  • Responsive – DPoS enables the EOS network to respond to issues such as the DAO attack that occurred on the Ethereum network. Should this happen to the EOS network, the block validators could vote to freeze the app until the issue is resolved. This way, the network can continue to run as normal.
  • Decentralized Operating System – The fact that EOS is a decentralized operating system allows EOS token owners to essentially own a portion of the network in proportion to the number of tokens they own. This eliminates the need for a transaction fee, which networks like Ethereum require.

Can EOS be used anonymously?

EOS Token holders are not anonymous on the network. As such, they cannot be used anonymously for their intended purpose. Even if they are only stored in a wallet on a stock exchange, anonymity is not really attainable. This is because every major online stock exchange always requires some form of ID verification procedure in order for its services to be used and the tokens to be acquired in the first place.

How secure is EOS?

In theory, the DPOS system makes EOS relatively secure. The system makes it possible to prevent potential dangers, such as the Ethereum DAO attack, because the validators could freeze the app. However, others argue that in order to take control of the EOS network, one would only have to control 11 of the 21 validators. However, this is rather unlikely

However, towards the end of 2019, there were two attacks on the EOS network. One went against a gambling app called EOS.win. The attack contained a loophole in the block chain’s code that allowed the hacker to create a large number of transactions, preventing the block producers from authorizing valid transactions.

The second attack came from a company called EIDOS, which performed an “airdrop” on the block chain that allowed users to obtain EIDOS tokens. The users only had to send transactions from EOS over the network, which in turn generated EIDOS tokens. As a result, the network slowed down dramatically with all the new transactions. This second “attack” seems to have been an attempt to draw attention to the limits of the EOS network.

Which teams are working on EOS?

Eosphere – Is a company that helps companies create and develop dApps that run on the EOS network. They hope to gain the trust of both EOS inahbers and dpp developers by helping to integrate block chain technology into traditional companies.

EOS Studio – Is an easy to use dApp development software for the EOS network. It has powerful tools for code editing and intelligent contract review. By improving the accessibility of dapp development, they hope to increase the number of high-quality dApps in the EOS network.

Which financial institutions use EOS?

Galaxy Digital Assets – Galaxy Digital Assets is an investment fund focusing on block chain technology and has an EOS-specific fund. The fund is intended to contribute to the support and development of the EOS network and at the same time invest in teams and companies wishing to adopt the EOS blockchain software.

Fin Lab – Fin Lab is a German company that uses technology and expertise to help build and develop other companies. They specialize in supporting FinTech start-ups, and the EOS Blockchain is one of the many methods available to them to slipstream and improve a company’s processes.

EOS Mining

EOS will not be dismantled. Instead, the offer is inflated by 5% every year. Of that 1% is used to compensate the block producers of the previous year. So when you become a block producer, it is possible to “earn” EOS in a way similar to mining.

EOS Wallets

EOS tokens can be stored in the majority of normal crypto-wallets. These range from online “hot” wallets to hardware wallets. Different types of wallets offer different advantages, from increased security to easier transferability. Here are some of the best wallets:

  • Ledger Nano S – Hardware Wallet
  • Trezor – Hardware Wallet
  • Atomic Wallet – Mobile and Desktop Wallet
  • Guarda-Wallet – Mobile and Desktop Wallet
  • Exodus – Desktop Wallet

There are also community-built EOS-specific wallets that make it easy to store tokens and vote on block producers on the network. Here are some examples:

  • GreyMass EOS Voter Wallet – Desktop Wallet
  • Scatter EOS-Wallet – Desktop + Chrome Extension
  • Guarda EOS Wallet – Desktop Wallet

Is EOS worth an investment?

This is a personal question that only you can answer after you have done enough research. If you are interested in developing dApps, then buying EOS Token is a prerequisite for this, not a question of whether it is worthwhile.

Out of pure price speculation, the price of EOS has gradually fallen since its peak in April 2018 and has remained at a low level.

It should be noted that the prices of the crypto currency are volatile and subject to major daily fluctuations. Therefore, you should always do sufficient research before investing and never invest more than you can afford to lose.