After staying a year in its Initial Coin Offering (ICO) stage, EOS or Block.one finally started launching version 1.0 of their open-source blockchain protocol – EOSIO. EOSIO is a platform and an ecosystem that will allow developers to build applications for commercial and corporate use cases. The project is more than anticipated, as cryptocurrency enthusiast have invested in the Initial Coin Offering more than a year ago. EOS was first introduced in 2017 and the only question for this time period was: Will EOS live up to the hype and deliver a great product?
Their whitepaper sure sounds great with free transactions, millions of transactions per second and a platform that will allow developers to build great applications. EOS can be a great competitor to Ethereum, providing similar or better solutions, but the project has a lot to prove. Block.one raised more than 4$ billion in its record breaking year-long Initial Coin Offering, which broke the previous record that Telegram set earlier this year. Telegram broke the records, raising 1.7$ billion in two private pre-sales, later canceling its Initial Coin Offering because of the raised large amount.
What is EOS and EOSIO?
The stakes are high for Block.one and EOS, but if executed right EOS might facilitate itself as a leading cryptocurrency. Currently, EOS is 5th by market cap and has already attacked the leaders, overtaking some of the previous leaders like Litecoin, Stellar, Cardano and IOTA. EOS will be a decentralized blockchain platform and network with new or updated key features. The EOSIO software will have improved database, authentication, communication, accounts, application features and scheduling between multiple cores.
EOS will allow developers to build blockchain applications on its platform that can scale between commercial and large scale business applications. These applications will be similar to Ethereum’s, but will provide more scalability potential. The launch of the 1.0 version of EOSIO is a crucial moment for Block.one, the whole project and a beginning of EOS’ potential. EOSIO will be maintained by a Delegated Proof of Stake system, that was originally created by Larimer and his platform – Steemit. This Delegated Proof of Stake system will be used for achieving consensus and is going to address some issues of Proof of Stake and Proof of Work.
Also, EOS’ Delegated Proof of Stake (DPoS) system will allow EOS users to vote on who will be the block producers. They will be responsible for validating transactions and maintaining the blockchain ecosystem. For their work, they will be rewarded with tokens and will constantly be evaluated by the EOS community. If the community is not satisfied by the block producers’ work, they can be fired if the community reaches a consensus by voting. If block producers fail to validate transactions, slow transaction speed, fail to create blocks or others, they won’t be long for the job. A report on EOS came out from the Ledger Inter Dossier, in which it became clear that Steemit’s Delegated Proof of Stake system currently handles thousands of transactions per second. This is a great sign for EOSIO and EOS’ future.
The EOS token sale started back in June of last year and it started as an ERC-20 token. EOS token holders had to register their ERC-20 tokens for a token swap, until earlier this week. All unregistered tokens are virtually useless now and all others were converted in EOS tokens on the platform. The native EOS token will give its owners the right to vote on future development of the project, miners and maintaining the ecosystem and network. Also, users of EOS-based applications will have access to a proportionate amount of resources to the amount of tokens that is staked in these applications. Click here to read just how rich are the richest EOS wallets and addresses.
EOS and Block.one are dedicated on the ecosystem’s future development
As I mentioned above, EOS raised around 4$ billion in their year-long Initial Coin Offering stage. But the company behind EOS, Block.one also managed to raise 50$ million funding from SVK Crypto, a blockchain investment company. They are based in London and they will invest in companies that will build decentralized applications on the EOSIO ecosystem. Mostly, they are focused on investing in decentralized projects that will be connected to social media, technology platforms, logistics or data ownership and security.
Block.one also has a Venture Capital funding program called EOS VC that aims to provide EOS developers and corporations with funding of their projects that use the EOSIO platform. Furthermore, the EOS VS program is dedicated to raise more than 1$ billion that will be used for the funding of future EOSIO projects and decentralized applications. The fund includes the 325$ million EOSIO Ecosystem Fund with Galaxy Digital LP. From all of this, it looks that EOS and Block.one are dedicated to invest in EOS’ future and the future development of the ecosystem.
Block.one’s dedication on developing the system is demonstrated in their decision to let the EOS community solve most of the initial problems that the EOSIO ecosystem has. They used the bounty platform HackerOne to launch a bounty program for bugs to improve their ecosystem and to reward developers who actively help in the system’s development. A software security researcher took full advantage of this and earned 120,000$ in just a week by solving EOS bugs. He discovered twelve vulnerabilities in the EOS software and earned 10,000$ for every bug he solved.
The software security researcher, Guido Vranken used this bounty program from HackerOne and his skills to discover existing bugs in the network. He found twelve bugs and earned himself 120,000$ for his services. He took to Twitter to mention his accomplishments. EOS thanked him and another security developer for their services. Block.one was so impressed that they even offered Guido Vranken a permanent job in the company, but there is no information about if he accepted or not. But he probably didn’t as his expertise allows him to be useful and needed everywhere. Vranken had previous experience in finding software bugs. His fixed software bugs count is around 92, as he has found previously software bugs in big corporations like Slack, Tor, Twitter, OpenSSL, Python, Dropbox, Trello, HackerOne and Yahoo!.
Thank you. A couple more waiting to be rewarded. I think the final tally was $120K but I lost count. Took me about a week.
— Guido Vranken (@GuidoVranken) June 4, 2018
Is EOS and EOSIO the best rival to Ethereum?
The whitepaper of EOS promises to deliver a great project, but we will have to see what will be the end product of Block.one. EOSIO and EOS look promising, but they still have a long way to go. Block.one secured an immense amount of funding for the project, so this has been taken care of. A lot of beta versions of EOSIO have been released previously, with more than 1000 bugs and issues already fixed. Still more than 500 issues are left for the community and developers to fix. Despite the setbacks, over a hundred projects are currently under development on the EOSIO system.
The most famous of these projects is probably Everipedia, which will be an online encyclopedia that will reward its user base with tokens, native to the ecosystem. One of the co-founders of Wikipedia, Larry Sanger is also part of the Everipedia team and is helping with its development. He wants to combat the centralization that is happening with Wikipedia currently.
“The biggest problem today with online information is that it’s controlled by very few players and centralized. This benefits to have only the most hype-driven and salacious information. We can do much better!”
Everipedia is also planning an Airdrop of its tokens to EOS holders. Click here to read more on Everipedia in this quick article.
We will keep our eyes on EOSIO and its great potential. It will be interesting to see how will the network unfold and the upcoming DAPPs. EOS’ feature to allow the creation of DAPPs is a direct competitor to Ethereum. Ethereum’s founder, Vitalik Buterin expressed his concerns on EOS’ DPoS:
“If you try to ensure decentralization, Delegated Proof of Stake will allow all coin holders to vote on who will be the nodes the will run the consortium chain. This, together with the lack of in-protocol economic incentives for these master nodes to behave correctly, and the lack of client-side validation capability, means that there is an extreme reliance on the voting mechanism… Another substantial concern is with voting: in order to win the vote, any delegate would need to have a visible public identity. Anonymous delegating would be very difficult to sustain in the long term. This makes the entire system substantially more vulnerable to political attacks.”
Block.one’s CEO countered Vitalik Buterin on Steemit, by providing points that counter Ethereum’s Proof of Stake algorithm. He said:
“Low voter participation has been addressed over the past 3 years through a combination of voting proxies, easier user interfaces and a reduction on the things that people have to vote for… Furthermore, non-voters do not make things less secure. They keep tokens off the market which still makes it more expensive for an attacker to acquire stake. Whale stakeholders have a huge incentive to vote to protect their wealth and an attacker would have to acquire more stake than the largest whales in the system… Last, EOS is designed around the idea that service providers (DAPP Developers) should cover network costs, not the users. A good application needs a monetization strategy that is independent of network operations. The existence of Steem is all the proof we need to demonstrate the value of free transactions and how we solve the issues with needing stake.”
Both sides have interesting points of view. Competition is great for the technology’s development, so as interesting this feud is, it will be healthy for both projects. With both projects potential being through the roof, only future development of their technology will show us where they are heading. In my opinion both projects are one of the most interesting on the market and if they deliver, they will be among the leaders in the following years.
Stay tuned for an in-depth EOS guide in the following days!
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