Before its official launch in 2018, the team behind EOS organized a successful ICO that raised over $4 million. This ICO is one of the longest ever conducted as it lasted for one year. This platform essentially brought decentralized applications, often shortened as dApps, into the limelight despite still developing. The platform is one of the best picks for programmers who create apps on the blockchain.
What is EOS crypto?
EOS is a blockchain-based platform that provides the structure and means to build dAps. Generally, this technology functions as an operating system, offering decentralization while enabling decentralized application scaling. EOS hopes to create a comprehensive approach that supports the project with close to a year of infrastructure building. Block.one, a private firm, developed the project and created EOS.IO, which works on EOS.
This platform aims to improve on the existing blockchains, especially in terms of scalability. Scalability is the ability of a platform to execute many transactions simultaneously. With the growing demand for digital assets, more people join the digital asset community to initiate settlements. Since popular blockchains continue to struggle in that regard, it becomes difficult to compete with the centralized system favorably.
What are dApps?
Decentralized applications are programs existing on a blockchain, which runs on a decentralized system. Decentralization, in this sense, means that there are no intermediaries nor under the control of an authority. Naturally, programs or applications in the digital asset industry become more appealing when distributed to users. In a nutshell, these applications are open-source and controlled by community members.
Since the development of dApps, numerous industries have adopted it. For example, many financial systems utilize this application for distributing decision-making powers between members. A known industry that uses dApps for executing financial services is decentralized finance (DeFi). With this application, users can borrow and give out loans. Similarly, users earn interest on assets stored in protocols.
How does EOS blockchain work?
EOS aims to work as an operating system to help dApps perform and function seamlessly. Experts have likened it to Ethereum due to the similarities the blockchains have. For example, both blockchains can reasonably handle decentralized applications. However, a noticeable difference is the transaction execution period. EOS claims to settle hundred of transactions within a second while Ethereum cannot process as much within that period.
Additionally, EOSIO attempts to compute like a real computer as it processes data in similar regard. For EOSIO to function appropriately, it has resources, which are running the blockchain. For instance, like a computer, this blockchain utilizes state storage. This storage helps the blockchain store information and data. Another resource computes like a computer, executing and processing the decentralized applications. The third resource is the bandwidth, responsible for passing information to different channels.
EOS is the native currency of the project, mandating users to purchase the token to buy the resources for their decentralized applications. EOSIO uses the delegated proof-of-stake (DPoS) to strengthen blockchain security. This gives token owners the privilege to operate the network. Also, the DPoS consensus works by selecting 21 people every day as validators.
Is EOS crypto a Good Buy?
EOS is the native token of the platform, and it has a circulating supply of 969,178,729 EOS. Like most native currencies, the community uses EOS as the payment system for the project. Presently, EOS ranks among the top digital assets due to the growing interest in decentralized applications. Similarly, a lot of people anticipate EOS’s long-term accomplishments, especially as an operating system.
After a successful ICO completion that raised a hefty fund for the team, the token grows amidst controversies. The asset has a lot of potentials as it aims to stabilize the digital economy. For the blockchain community to go mainstream, some things have to change. Some of those things include low-cost charges and low latency. Theoretically, EOS’s regular updates have shown that it’s possible to have a scalable blockchain that can serve as an alternative to mainstream systems.
Another reason why EOS is worth a buy is its growth as an investment within a short period. When the EOS team launched the asset, it was worth around $1, and it grew by over 900% when the year ended. The token has been quite unstable as it attained about $22 in 2018 but dropped to $2 that year.
So, if you want to buy the asset, it’s best to purchase it for the long term. This is because more updates could essentially change the token for the better. Still, EOS is relatively a new coin, and it has to prove its worth over the next few years for people to take it seriously. With the growing use of dApps for gaming and finances, the token could be worth much more in the coming years.