The amount of attention and investment the upcoming EOS project has already seen makes some individuals skeptical, but to me it validates the demand and faith that investors have in the upcoming smart contract platform.
The EOS platform will be fundamentally different than any other smart contract platform that the cryptocurrency market has ever seen, and will be deployed with the goal of mainstream end user adoption in mind. One of the main arguments that I have heard individuals pose is the advantages that Ethereum has due to its existing market cap and price level, but these advantages don't come close to making up for the technical restrictions that the Ethereum network faces. The network is restricted due to the need for the utilization of 'gas', and has a maximum transaction cap of 30/transactions per second under the current infrastructure. Not only does the requirements to spend Ether in order to interact with the network reduce the transaction capacity drastically, but it also would require developers and end users to pay for all of the interactions that they took with applications on the network. While need for gas was needed utilizing the technology when Ethereum was convinced, the underlying network restrictions of the Ethereum network would not be capable of supporting or maintaining mainstream adoption of the platform.
The EOS platform will utilize a DPOS Graphene blockchain similar to Steem, Bitshares, Peerplays, ect, but will be a platform intended to host applications rather than being an application specific blockchain like existing Graphene networks. The EOS platform has been shown to be able to handle 80,000 transactions per second on a local machine, and shows serious potential to actually have the ability to support applications that achieve mainstream adoption realistically without any network modifications. With the Ethereum platform could theoretically make changes to the underlying protocol of Ethereum to be able to support the changes that would be required in order to support higher transaction levels, the likelihood that the network would be able to reach the level of consensus that would be required would be extremely slim. The EOS platform is being built using the same underlying protocol that gives the power to the stakeholders of the platform, and will be have the ability to make changes efficiently and fluidly if problems should arise. The ability to implement and deploy changes to the EOS network will be able to be implemented once a specified level of consensus is reached among block producers, but the ability to elect and remove block producers will ultimately lie with the stakeholders of the platform.
The entitlement of resources based upon stake rather than having to 'pay' for all interactions will enable developers and end users to interact with applications on the network cheaper and more efficiently than ever before.
The same concept was applied to the Steemit blockchain where all user interactions are recorded as transactions, and forcing users to pay for posting/voting on the platform would be impractical for a social media platform. While EOS does still require users to have a delegate amount of stake in a staking account, the stake doesn't have to be spent or 'paid' in order to have access to network resources and interactions. This is a huge improvement over the utilization of 'gas' on the Ethereum network, because end users would be much less likely to use an application if they had to pay to interact with the application. Stake will have the ability to be delegated on the EOS platform similar to how it can be on the Steemit platform, and will enable stakeholders to delegate stake in applications and use cases that promote the long term success and adoption of the platform. Stakeholder's have incentive to do everything that they can to promote the adoption and success of the platform, and delegating stake to other users and application developers will give developers the ability to develop and release applications on a decentralized network for a lower cost than ever before.
An application developer or business who utilizes the EOS platform will not incur reoccurring network costs or fees from running their application, but will rather just need to make sure that they have sufficient funds in their staking account to entitle them to the amount of network resources their application requires. For instance a staking account that contains 1/500th of the total stake, will be entitled to 1/500th of the network storage and bandwidth until the point where they remove the funds from the staking account. This form of stake entitlement is a revolutionary concept, but I believe it is the way that the future of blockchain technologies will be headed. The aspect that stake in the platform entitles the holder to a proportionate amount of the total network resources, will enable EOS tokens to achieve an actual value as the platform gains adoption and use cases. The lack of fees for launching and interacting with applications residing on the EOS network will likely lead to more application development than ever before, because of the limited barriers to interacting with the network.
Tokens will be distributed to network producers once the platform goes live, but the platform will also reserve the ability to fund application development and businesses on the EOS network. Stakeholders will have the ability to give up to 5% stake among 3 different development teams or projects, but the stakeholders also reserve the right to determine which projects are funded, how much funding they receive, and the total inflation rate that will take effect from their funding. The stakeholders hold all of the power to determine the total inflation rate, and can easily change the inflation rate over time as they see fit. This funding gives incentive for businesses and developers to provide applications and services that the stakeholders deem worthy of funding, which will likely allow the EOS platform to receive more third party DApp development than any other smart contract platform before.
Unlike the Ethereum platform, the EOS network will enable a practical method for their network producers to quickly scale the network resources to the level demanded by the network.
Due to the fact that the EOS platform will enable parallel processing, which is the ability to spread out the same workload over numerous cores on several different machines, the EOS platform will make applications that require high throughput and low latency a realistic possibility. If an application on the Ethereum network was to receive mainstream adoption, it would be highly unlikely that the network would be able to support the number of transactions that the application would require. Networks that utilize the underlying Graphene technology have the highest daily transaction level out of all cryptocurrencies, and also have the ability to handle a significantly larger amount of transactions compared to what they are currently experiencing. The EOS platform will not only make application development more cost effective for developers than ever before, but it will also enable businesses and developers to have faith that the platform could efficiently handle the activity that would required if their application received adoption.
In order for a business or developer to be able to justify the required time and resources into developing an application on the platform, they must have faith that the platform would actually be able to handle the level of activity that they hope their application receives. The level of investment that the EOS distribution has already raised has made some people skeptical, but in reality it just proves that businesses and high value investors have a lot of faith in the potential of the EOS platform. When we consider the amount of success and reliability that application specific implementations of Graphene technology blockchains have shown, the potential for a smart contract platform utilizing a Graphene blockchain to be able to achieve and promote mainstream adoption is clear. Ethereum has a market capitalization of over 18 billion USD, and Ethereum has yet to produce or present any applications that have received any degree of mainstream adoption. It's completely logical to assume that a smart contract platform that receives mainstream adoption to be able to achieve a market capitalization in the hundreds of billions, because it could present end users and businesses with a wider range of potential use cases than any blockchain network in the past.
I really hope that you enjoyed this post, and I urge you to leave any questions, input, ect. in the comments below. I intend to post a variety of additional EOS content in the near future, so stay tuned! Thanks for reading!
thanks for the article.
All nice job
I upvoted this post...nice blog about EOS, I think this crypto is on still early stage and many people has point of view to be skeptical, personally, I made a decision not to jump on this so early crypto, I made a blog about this which is quite reading btw thanks for sharing this article
https://steemit.com/eos/@hiroyamagishi/investing-strategy-on-eos-is-it-today-the-best-time-to-invest-on-early-stage-cryptocurrency-like-eos
This post received a 3.4% upvote from @randowhale thanks to @hiroyamagishi! For more information, click here!
I bought some EOS. Then heard that the price will plummet as more EOS tokens are released. I decided to ignore that. Hold the coins I bought and if the price plummets, just keep buying more. Wouldn't be the first time I did that. I believe in this guy Dan. I trust him. But I also have a sliding scale of trust vs. risk.
So do I trust Dan enough to throw a ton of money into EOS?
Yeah. I do. He is brilliant. I am going with the brilliant guy.
I also LOVE me some DigiByte.
As they say, "take yer shot".
HEY, BY THE WAY: Dig my latest post if you have a minute. It's a shorty. Trying to see if "teasing" a piece, while really working really hard on it "creates a buzz". A sense of anticipation. Excitement! Let's find out!
https://steemit.com/staytuned/@flycryptoguy/good-luck-to-everyone-over-the-next-few-weeks-we-will-all-be-mooning-soon-omg-then-what
I would love it if u followed!
: )
#payitfoward
Followed and upvoted :)
Hi @cryptofreedom, indeed I enjoyed reading your post. Well written and structured. I do struggle with a few thing about EOD though. Let me outline them.
In any case thanks for sharing and will follow to see your next posts. If interested in cryptos in general, so outside of EOS, consider following me as i write regularly about it too. I did upvote you btw. Cheers!
Exactly THIS! so glad that someone actually thinks outside the bubble and ask the real questions. Also the funny thing is during the ICO they give you tokens based on ETH which is pretty much worthless on EOS platform once and IF it gets ready. The agreement paper you sign when you buy the tokens are a joke in my opinion. They pretty much say you have zero right to anything and they dont even have to finish the project. People should read these terms before making this project sound so wonderful. I do hope it is successful but i also hate when people hype something without question.
Still this was a good article to read.
All of your questions have been answered in other articles about EOS here on Steemit. Just check the EOS trending page. Parallel processing is thoroughly explained in some of Dan's posts.
BTW, if Steemit was running on Ethereum, you'd have to pay with Gas every time you upvoted a post, AFAIK. This is just one of the reasons I think EOS is going to supersede Ethereum.
I am sure for every question anyone has there is an answer on the internet ad/or here on steem. The point is i haven't found it yet and i am not going through a long list of articles hoping i find the answer somewhere. Isn't answering questions like these the whole point of replying to comments?
Sure, answering questions is one point of replying. But would you rather rely on the information provided by a random person on the internet, or the actual programmer creating the project? I'm pointing you in the right direction to get the information you want. Read the articles by Dan Larimer on EOS. Or check out the EOS presentation he gave at Consensus on Yoitube. He does a much better job of explaining it than I could ever do.
Alright i get your point, thank you
Wouldnt changing the ETH project midstream, or while its in operation, do some sort of damage to all of the projects that have adopted the ETH platform?
Good question. No I don't believe that will have an impact as i assume it will be backwards compatible. But i am not an expert on the ETH platform so i cannot provide an definitive answer here i am sorry.
I chuckled when I read the eth community would have hard time coming to consensus about making the platform better for everyone. But we have to remember where we are but still, at times, this hyping seems to get a bit over the top.
Eth is already working on making their network scale. It might reach that state before we ever get to see EOS live. Do proper research, 700 dollars should be enough motivation to know both sides of the story before writing about like you know them both.
And yes, it's strange that we always see talks of how EOS will be and compare that to what eth is NOW, not what it will be.
Hello whales! This doesn't mean I'm not interested in EOS, in fact, I'll probably buy some eventually. But I'd hate to see this place turn in to a echo chamber. "Witness me!"
@attalis, If people are putting money in this baby initiative, then what's wrong in it? I have seen crowdfunding campaigns where they raised far more money than their actual funding goal and you can check that too at any big crowdfunding platform like Kickstarter and Indiegogo. The extra raised money will be used in bringing a better platform with potentially more features. Other than that, your questions about the comparison between ETH and EOS makes sense. They are doing the wrong comparison.
If I read correctly, one must buy EOS token to use in their platform right? So we need to raise funds from our own token sales to buy the EOS token to make sure we have the bandwidth allocated for our application developed on EOS?
wonderful articel...Great project @cryptofreedom... i really like to read your post. Your posts are very useful. You are a great steemian. I am happy to meet you. I hope to be successful in steemit like the seniors of steemit.
i also think EOS has very good future it is one of the best cryptocurrency to invest now day and upcoming project will take these to moon great info bro
Yes. Thank you bro.
EOS is faster, cheaper, easier and more scalable than ETH. I am investing accordingly. :)
Yes it appears that is true that it is more efficient and cheaper . Still it's price is down 80% and we wait to see how it works in real life but it sounds like a superior platform than Ethereums.
Agree, and EOS is not even ready so its hard to compare it with anything right now. Also i like to point to this video where some of the concerns are highlighted:
I think if EOS manages to deliver on the promises its making it has a good chance being in the top 5-10 but then again ETH might also be able to introduce huge improvements considering how much money they have in the bank.
EOS is the Ethereum killer! Give it about a year or two and the price will skyrocket!!! Now is the time to buy it!
Great post @cryptofreedom! That was very informative. I actually bought some EOS just a few days ago because of similar reasons
Hi! Where you have bought EOS? In some Exchange or where? What kind of wallet to secure store EOS in?
You can buy it on kraken I'm just holding mine in the exodus app at the min but I only have 11 I'm not going all out on something that isn't even up and running yet and the amount of new companies built on ethereum blockchain is growing daily
You can buy on Liqui too
Congratulations @cryptofreedom!
Your post was mentioned in the hit parade in the following category:
Great article. Thanks for sharing!!
I also think this is great!
Do you now.
Nice read, I enjoyed it. Although the introductory part isn't for me, I'm already H-Y-P-E-D about this.
Sometimes it's easier to design an engine when it's not running. So development may be faster than ethereum. It will be interesting to see if EOS can create enough value add versus ETH to make up ground on the developer mindshare advantage the ETH has over everyone else.
Dan Larimer's analogy, I see what you did there, but yes thats true.
THIS is exactly what Dan suggested during his interview with Jeff Berwick...
It is NOT easy to change the engine or its parts WHILE the engine is running...
~~~ much better to build the engine properly BEFORE starting it ~~~... and THIS is why Google surpassed ALL previous, existing search engines...
It's hard to get if you don't program yourself i guess.
A friend told me Golem and EOS are similar in a way, but for the history of EOS and it's founder i got more trust in it to suceed.
great information dude :) deserve my upvote and resteem
Sell that ETH fam.
whats the potential for a conundrum between Eth and EOS the likes of beta vs VCR which we know betamax was far better tech than vcr but vcr won market share???? http://www.mediacollege.com/video/format/compare/betamax-vhs.html
Congratulations @cryptofreedom!! Flatrider has enjoyed this post so much that he has awarded you a gift. You will find 0.025 SBD in your account within 24hrs.
I really enjoyed this read as I am so new to EOS and this whole Ethereum rivalry, seems to stoke my interest even more now. Super interesting read and well done. :-)Nice article, like the concept 👍🏼
Great project
Thanks for the information
I'm big on EOS especially after the DollarVigilante promoted it.
His interview with the creator was also very convincing.
Usual news.
nice piece of information dude....upvote and resteem 4 u
This is the line where everybody, who is not blindly following the hype, stops and asks some questions...
Ethereum is partly valued so highly, because it's decentralised and supposedly "trustless".
Also ask yourself, what is the difference between running on the EOS platform and an Amazon cluster. I'm not sure what the answer is.
Thanks you @cryptofreedom for this cool article! I can see that EOS has good potential in the future. It migh be the next 2 or 3 years. EOS is the platform to solve the real problems. So in your own idea, what is your expected price of EOS after 2 years?
Right now, there are hundreds of major companies, banks and governments looking to build enterprise level applications on the blockchain, and leverage the smart-contract technology of Ether.
The problem is, as we’ve seen with the rise of ICOs this season, these technologies don’t scale well. The goal is to change that by creating a system designed for enterprise level adoption, that allows large corporations to build DAPPS (Decentralized Applications).
Let's invest all !!!!!!!!
Come on !!!
yes! buy buy buy!!!
Thanks for the info, I'm planning to invest on EOS...
Thanks for sharing this with the Steemit community. Im fully supporting this project. Fear of the unknown is alive and well out there but you have to love this team!
Great read! Thank you! *****
I wanna know more about eos.. so thanks for keeping on
upvoted @cryptofreedom and resteem :)
Thank you for sharing.
Meanwhile the Tezos ICO is being beset with complaints to the SEC and state attorney generals by people realizing they have been scammed. Don't expect to see this on the CryptoMedia sites that waved their pom-poms in support of the Tezos fraud. Even their 'Credit Suisse' connection refused to do business with US investors, realizing that US laws and SEC regulations were being ignored.
https://www.minds.com/newsfeed/738672564238295057
Great article. Thanks for sharing!!
Thanks for the article mate, wasnt so much into EOS beforehand, but this is some really nice input from you.
Good information,
And, I do not know about EOS yet, so can not ask for nowthanks for sharing.
eos the concept is good,lets see about the implementation.
Great read! Thank you! (:
Thank you for this informative article. I'm still learning all about EOS and this truly helps me, thanks! Upvoted & Resteemed! 👍👍😎
well i am really a pro eos, so all the best
Very useful to me :)
thank you @cryptofreedom
I am @Rizal
Can't blame them
thanks for sharing..kindly check my article also about happiness..https://steemit.com/funny/@mrblu/smile-and-look-at-me--blue-post-funny just to save your day..on all codes ,,just relax and take it easy..^_^
I'm certainly watching. I will need to review this in more detail on my site from an investors perspective.
I just glossed on the read and will come back for detail- I think you have found a very effective way to communicate the information - SOME jargon, but not too much, and you may have picked up on things about EOS I've missed (probably), and definitely some of the implications I've missed. Thanks.
Thank you for the detailed information @criyptofreedom, I beleive we are just witnessing the debelopment of Netscape after Mosaic if we want to make a comparison with the internet browser evolution.
nice articel