What Is EOS blockchain?
EOS is a new blockchain software system developed by Block.one. Starting in mid-2017, after a year of token crowdfunding, the home page was successfully launched on June 15, 2018, marking the start of EOS.
The full name of EOS is Enterprise Operation System, which is a blockchain operating system designed for commercial distributed applications. EOS is designed to address the existing problems in blockchain applications such as low performance, low security, high development difficulty and high transaction fees. EOS transactions require no fees. Any team can develop the required dApps (distributed applications based on blockchain) on EOS quickly, and the economic activities occurring within the EOS framework can be completed with EOS tokens.
Sacrifice security and decentralization for efficiency
Founded by BM, EOS seeks to solve the problem of slow blockchain, aiming to build a commercial-level operating system. The EOS official described it as follows:
It is expected to support millions of transactions per second with zero fee rate and deploy decentralized applications quickly and easily.
It turns out that EOS is clearly faster than Bitcoin and Ethereum.
Bitcoin is not Turing complete and cannot function expansion is limited. Meanwhile, Bitcoin also exposes problems such as slow processing speed and high handling fee.
Ethereum was created to execute smart contracts, and the biggest improvement is that it supports “Turing completeness” and becomes a programmable blockchain network system, which is currently the best-developed blockchain ecosystem.
However, the gas charging mechanism designed to protect against hacker attacks and infinite loop bugs that consume the entire network is doomed to make it impossible to build large-scale universal applications on Ethereum. Imagine the cost of sending messages on a blockchain social platform running on Ethereum.
Also, Ethereum has a 15-second delay per new block, which is not a big deal for Ethereum wallets, but 15 seconds is too long for functions like post and thumb up.
The existing blockchain platform is characterized by slow transfer speed, high transaction costs, high difficulty in concurrent system processing, security defects, and high difficulty in development. All of these are the pain points that hinder the large-scale application of blockchain technology.
EOS is born for applications.
From the perspective of speed, the TPS per second of EOS is about 3300, which is 200 times that of Ethereum and 450 times that of Bitcoin, even though it is far from the “million TPS” claimed by the official website.
For an open-source blockchain system, however, efficiency is not the only metric. Security and decentralization are equally important.
Since its arrival, Bitcoin has been the leading cryptocurrency with a market cap of more than 50% for a long time, which stems from users’ recognition of Bitcoin’s security and decentralization.
Bitcoin remains by far the most decentralized and secure blockchain payment system. It has been hacked in the early days, but there have been few cases of users losing their assets.
In contrast, EOS sacrifices decentralization and security for performance. EOS is operated and maintained by 21 nodes in the world. Once these nodes go bad together, the EOS ecology will be in great danger. Therefore, EOS is weakly centralized with lower security, while Bitcoin is decentralized and highly secure because it is maintained by millions of miners around the world. For example, during this year’s Defi mining boom, EMD, the first project aborted, stayed online only for 13 hours before the founders walked away with $2.5 million. Just a few days later, the memory theft of another project “Coral” lost 120,000 EOS. The low security is too stunning.
The reason is that the smart contract of EOS is different from Ethereum. Developers of EOS smart contract have the highest authority and can modify the code manually even after the contract is deployed, while smart contracts in Ethereum cannot be modified once they are deployed. Therefore, the Ethereum project will not see developers running off, whereas the EOS project could.
With the inception as its peak, EOS is not performing well enough
Among cryptocurrencies, perhaps EOS has the largest amount of funding. In 2017, EOS launched a crowdfunding, and after a year, EOS raised $4.2 billion.
Bitcoin did not raise money. Ethereum raised about $20 million and TRON raised $70 million, while EOS raised 200 times more money. In addition, according to Wikipedia data, the total amount of 171 crowd-funding projects with the highest funding in history is less than 65% of EOS, making EOS the most expensive blockchain project in history.(click check EOS price now)
The proportion of the financing amount of each major project
However, is expensive always good?
Not only does EOS lag behind Ethereum in decentralization and security, it also has a poor return on investment.
The price of EOS hit an all-time high of $23 on April 25, just before the website’s launch, but has since fallen. By the time the website of EOS launched on June 15, the coin had dropped 55%, leading to the departure of millions of people who had entered the market with high hopes.
There was worse to come, however. EOS fell to an all-time low of $1.40 in 2018, down more than 15 times from its high.
Bitcoin and Ethereum, which also fell sharply in the same period, have once again proved their worth in this year’s rally, while EOS is still struggling at the bottom.
According to www.bixiaobao.com, the return rate of Ethereum is 1335 times, TRON is 15 times, and EOS is only 1.4 times, which shows that the financing amount of EOS has overdrawn the market in advance.
Compared with the upcoming Ethereum 2.0, EOS is still developing slowly, and its market cap has dropped from the top five to the 13th place. When it was launched, “challenging Ethereum” and “blockchain 3.0” were shouted out, and I am afraid that they have already become laughingstocks and become the pain in many people’s hearts.
RAM and ROM for EOS
Unlike Ethereum, which is free to register for an account, EOS requires a certain number of resources to register, so it usually costs $1 to $2 to register an account for EOS.
In the field of computers and mobile phones, RAM is a kind of random memory and an important part that determines the running speed of computers and mobile phones. DApp developers develop and run DApps on the EOS network just like they run an application on a computer or mobile phone. On an EOS network, four resources are required to run a dApp: CPU, bandwidth, memory (RAM), and storage (ROM). RAM is valuable to developers because it takes up space to develop dApps.
However, memory on the EOS network is not allocated according to the total amount of EOS, but is shared by multiple participants. If you want to use EOS memory, you need to mortgage your EOS, and then release the memory when it is used up, and then redeem the EOS mortgaged.
In addition, users can also sell their memory to others, improving resource utilization.
In this mechaninsm, RAM is also highly speculative, and when a DAPP becomes popular, many people tend to hoard memory to make a profit.
From this point of view, running dApps on EOS is not officially free, but requires a certain amount of resources, which is similar to GAS charges in Ethereum, but the memory mechanism design of EOS is much more speculative.
In a word, there is still a long way to go before EOS can be commercialized, no matter for its products or ecology. We will wait and see where EOS will go in the future.
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