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Understanding EOS – What You Need to Know

BitForex Editor
Nov 09, 2020

The price of EOS as of 6th November 2020 within 24 hours is $2.52 with a trading volume of $1,925,530,799.

The Blockchain has been the most decentralized transaction platform ever seen. When Blockchain was introduced to the world, it was a welcome advantage; but as its acceptance increased, it could not handle the number of transactions. For the past decades, the Blockchain has evolved and numerous Blockchain platforms that have been created to curtail the massive transaction volume such as Ripple Stellar, Ethereum, and now EOS.

What is EOS?

EOS or EOS.IO is the newest Blockchain on the block. It was first introduced in 2017 when it conducted its initial coin offering. Today, it is currently one of the top five currencies in fierce competition with other platforms like Ethereum, NEO, and Tron.

So what is EOS?

EOS is a new distribution Blockchain platform designed to perform and support industrial-decentralized apps. It is poised as the transaction infrastructure to help carry out millions of transactions per second for free. The EOS team has created effortless, friendlier Blockchain tools that will allow users to build decentralized apps without the usual obstacles and challenges encountered on other DApps.

The platform intends to improve on the Blockchain scalability, as it is the major drawback on most Blockchain platforms. Customers will enjoy a free system as EOS is employing both vertical and horizontal scaling to enable a secure platform that can process millions of transactions per minute.

It intends to use smart contracts, decentralized cloud storage, zero transaction fees, seamless transaction regardless of the volume, and simple user authentication. Blocks produced are paid for by the system, and 2 blocks instead of one are created per second. Furthermore, the system is powered by the token, which can also serve as a utility token.

How is the EOS Platform Free?

The EOS is the native currency of the EOSIO Blockchain and the medium for transacting on its platform. Usually, when a transaction occurs on the Blockchain, it charges a fee to enable the continuity of the block. As more people use the Blockchain, it gets costlier due to the energy expended and cost of maintaining the computer systems.

This is why scalability is a problem for most Blockchain platforms. Now, EOS is different. Rather than run the system on their own, each user on the EOS is a stakeholder on the Blockchain. What this means is if you own 4% of the EOS coins, you automatically are investing in 4 percent of the operational power. This simple logic makes EOS Blockchain free of charge.

How does EOS work?

Like any other cryptocurrency platform, it requires some work, but EOS is pretty straightforward. You can call it a DIY Blockchain system that allows you to buy and store EOS tokens freely. To buy the EOS coin, the user must get an EOS wallet by first creating an account with the platform. Next, you locate your EOS address, and now you have access to any trading platform, funding, buying, transacting, and withdrawing tokens to and from your wallet.

The EOS platform has two types of wallets that operate using two different keys. Each wallet is accessed using two private keys – the user’s key (the owner of the EOS account and an active key). The active key is non-functional without the owner key, which means before activities can be carried out on an EOS account, both keys must be activated.

The wallets are:

Software wallets are easily downloaded onto your device but need a passcode to enable the user to access their account. You also need an internet system for it to work. Due to the nature of the download and location, it is susceptible to virus attacks and hackers that could lead to the loss of your token.

The hardware wallet is a ledger wallet and an external drive that is used by EOS. This physical hardware can store EOS tokens and other cryptocurrencies on your mobile devices and computer system. Unlike the software wallet, your coins are safe and are not prone to attack by hackers since it is not available online. It is also passcode protected and cannot be accessed without one.

Why People Love EOS?

*It is designed for public and private use.

*It is easily customized for any real-time purpose.

*It is secure and offers a secure payment method for a variety of economic sectors.

*It is easier integrated into an existing Blockchain with lags or lapses.

*It is comprehendible even by those new to cryptocurrency.

How will EOS change the current Blockchain?

Scalability is the prevalent problem with any Blockchain system. Today, transactions are limited to maintain the system. Ethereum handles 20 transactions per second, but EOS is relying on the delegated Proof of Stake consensus mechanism to seamlessly conduct millions of transactions per second.

The delegated-Proof of Stake is an advanced consensus mechanism of the Proof of Stake and this is how it works.

In this method, producers are selected via a continuous approved voting system among those on the Blockchain that have integrated their EOS software in the block. Blocks are usually produced at rounds of 21.

After the first 20 random selections, the 21st producer is offered to produce a block proportional to the votes of the other 20 producers. The system continually shuffles the system to create a balance between the producers and ensure the minimal block time is always maintained.

Producers that fail to keep the cycle of producing a block are removed. This system ensures EOS does not lack producers as everyone partakes in the smooth operation of the Blockchain.

Blockchain is still a work in progress as it continues to disrupt economies and find easier ways of making payment systems seamless. Although EOS is new, it has a bright future compared to other systems. Its projection for a fast, free, and scalable decentralized unit makes it a potential threat to other Blockchain platforms.

About BitForex:

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BitForex is programmed in a way that it can quickly adapt to the changes of the Crypto market while introducing new features like margin trading, enhanced trading charts,  derivatives, and a host of others. The headquarter of BitForex is located in Hong Kong, while there are branch offices in countries like the United States, South Korea, and Singapore.

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