Guarda explains EOS

EOS became famous due to two main factors. The first one was its creator Daniel Larimer, who was already a recognizable figure before EOS came out on the market. The second one was its advantageous launch time. EOS appeared simultaneously with the beginning of the rapid growth of cryptocurrencies. During the first day of trading, it managed to attract $170 million in investment. In addition, the crypto community highly appreciated EOS’ stability and commitment to protecting user data. Let’s explore the technical aspects that helped this cryptocurrency take off rapidly and occupy such a strong position on the exchanges.

What is the EOS system

Officially, the EOS mainnet was launched on June 9, 2018. It is a blockchain, a cryptocurrency and a platform for decentralized applications. As for the main features of the system, there are two of them:

• parallel processing;
• asynchronous connection.

EOS invented an entirely new blockchain architecture that allows both vertical and horizontal scaling for decentralized services. This was achieved by developing a special design that resembles a full operating system. New applications can be created on this foundation. The software offers users the following features:

1. account creation;
2. database authentication;
3. asynchronous communication and dispatching of decentralized services.

According to the developers, when EOS is finalized after the launch, it will be able to process millions of transactions every second. At the same time, transaction fees will be minimal, and users will be able to create their own decentralized services quickly and without any difficulties.

However, the architecture of the system has not found any support in the blockchain community. Skepticism about EOS persists even after the official launch of the network. The first thing that confuses the community is the use of the DPoS algorithm. Its essence is to provide the authority to third parties to confirm transactions. Crypto analyst Tonу Vays, who had previously worked with representatives of the EOS team, said that in the past such decisions were made to ensure control over the digital currency by a small circle of people. According to him, such DPoS use has already been noted in other Larimer projects and this gives the management team an opportunity to issue tokens without restrictions.

Also, the crypto community questioned Daniel Larimer’s words about infinite scalability. In particular, the Tierion creator Wayne Vaughan has talked much about it. According to him, there are no technical confirmations of this statement, including the whitepaper.

The EOS system has been causing discrepancies and debate in the crypto community almost from day one after the announcement of its development. Disputes haven’t ceased to this day and only time will tell who is right and who is wrong.

What makes EOS so special?

Any cryptocurrency or blockchain system that enters the market is immediately compared with the most famous analogs. However, due to EOS’ greater similarity with Ethereum than Bitcoin, it is more appropriate to draw parallels with Vitalik Buterin’s creations. Let’s compare the two systems using three leading criteria.

1. Philosophy

The Ethereum team stands for simplification. Steps were taken to minimize the code and achieve maximum neutrality. Of course, a smaller amount of code has its advantages, but when you develop services, you have to write the necessary code manually, which can be a waste of time.

In the case of EOS, the situation is different. Here, the creators immediately integrated all the options necessary for developers, so it isn’t necessary to reinvent the wheel.

2. Algorithms

Ethereum uses the classic consensus Proof-of-Work algorithm. The system does not have any way to protect against the risks of creating new forks, which means that there is a possibility of additional competitive cryptocurrencies appearing on the same foundation. In addition, there are a number of network scalability and troubleshooting issues. In case of critical failures in some applications, they would have to carry out a hard fork.

EOS took into account the mistakes of its predecessor and developed a special algorithm to stop and fix bugs in applications. As for the consensus mechanism, it is DPoS, as we have already mentioned above. The peculiarity of the network is the presence of its own constitution — a legal document, which will be the basis for resolving disputes between participants in arbitration.

3. Protection

Ethereum’s security system is flawed. If one smart contract with too high of a user сommission is detected, problems can occur throughout the network. The crypto community remembers such cases. A large number of transactions with high fees creates an additional load on the network, which makes its operation unstable.

EOS features a proportional division of the share to each participant, according to computing power. Accordingly, a hacker attack is possible only on the part of the network which holds the available coins. In addition, an attack on one application can’t harm the entire system as a whole.

Thus, EOS looks like a more advanced system than Ethereum. However, all these statements still require time to check and verify. It will be possible to say for sure whether the creators of EOS managed to bring crypto to a whole new level only in a few months.

There are few important things you need to know about EOS, one of the most popular currencies, supported by many fans. Guarda team adds all the best coins and tokens to meet the highest expectations of the crypto-community.

We are glad to welcome EOS on board, so you can start managing your EOS using Guarda Multi-currency Web and Desktop Light Wallets.