In July 2017, EOS or EOSIO announced its first initial coin offering (ICO), which shocked the blockchain community. Within two years of its launch, EOS made a name for itself as one of the top five cryptocurrencies. It gave both new entrants and market leaders (like Ethereum) fierce competition (like Tron and NEO).
In this post, we’ll give a broad overview of EOS, go over some of its standout features, and go over the factors that make it a promising blockchain platform for creating scalable enterprise-level decentralized applications (dApps).
What is EOS?
A blockchain platform called EOS/EOS.IO is used to create large-scale, decentralized applications. Its underlying infrastructure is strong enough to support this procedure.
EOS’s main goal is to offer a user- and business-friendly tool for developing dApps while resolving the issues with established blockchain platforms like Ethereum.
One of the biggest issues preventing blockchain technology from becoming widely used is scalability.
For instance, the number of transactions that can currently be made with Ethereum is very small. Additionally, in order to utilize any of the dApps created on the platform, customers must pay the Gas fees. This
is particularly unsuccessful since users won’t want to use a system that charges a transaction fee at each stage.
The key selling features for this platform, as identified by its creators and advocates, are as follows:
Elimination of all transaction costs.
the capacity to perform a billion transactions per second.
Before we get into great detail on the EOS platform, let’s first examine what makes a dApp platform successful.
What are the key success factors for a dApp platform?
The general public’s acceptance of a dApp depends on a number of factors.
The following list, in general, contains the essential ingredients for any dApp’s success:
Large User Base Support
Millions of users must be able to utilize the dApp platform concurrently and without any performance difficulties, hence it must be scalable.
Any blockchain platform’s dApp should be free for end users, with an easy upgrade path. Users would be discouraged from using the dApp again if there were a transaction fee.
To give users a positive experience, the dApp should operate with the least amount of latency.
Performance in Parallel and Sequential
Any blockchain platform’s dApp should support parallel processing to spread out the effort and reduce processing time. The dApp need to permit
What are the technical features of EOS?
What prospects exist with EOS, then? The EOS blockchain platform’s technological features, which are detailed below, make up the solution.
Because blockchain transactions require each node in the network to reach a consensus for anything to move through, scalability (or the number of transactions performed per second) is a major challenge for the majority of blockchain platforms. The user experience is negatively impacted by this. Visa, for instance, handles 1667 transactions every second, whereas Paypal handles 193. Ethereum performs 20 transactions per second, which is marginally better than Bitcoin’s 3–4 transactions per second. EOS claims that its distributed proof of stake (DPOS) technology can accommodate millions of transactions per second.
Ethereum’s 2016 code vulnerability was taken advantage of. As a result, roughly one-third of the money held by the Decentralized Autonomous Organization (DAO) was siphoned off (a venture capital fund initiated by Ethereum). The system as a whole came to a halt. Ethereum had to undergo a hard split, resulting in two separate blockchains, each with its own cryptocurrency: Ethereum Classic, which used the previous validation methods, and Ethereum, which used the new validation rules. Due to the DPOS mechanism, EOS asserts to offer security from such vulnerabilities. When a dApp is under assault or has a problem, the elected block producers can freeze it until the system is fixed.
EOS has a robust permission system that allows users to design unique permission structures for different business scenarios. For instance, you could design a special permission to guard a certain function of an EOS smart contract. Additionally, you can distribute the authorities needed to use an EOS smart contract function among several accounts with various authority weights. By using this functionality, developers can create powerful dApps without having to create them from scratch.
Upgradability On the EOS blockchain network, every dApp that has been installed is upgradeable. It indicates that users may be given permission to deploy code fixes, add or modify functionality, and alter application logic. Additionally, programmers can update their apps without being inextricably linked to a defect. It is also feasible to use EOS smart contracts that are irreversible. However, these choices are made at the developers’ discretion rather than due to protocol limitations.
decreased energy use Due to DPOS, EOS is a platform that uses less energy than others.
GovernanceIn EOS, the governance is upheld by establishing jurisdiction and a preferred legislation together with generally agreed-upon guidelines. The binding constitution serves as the vehicle for achieving this. In EOS, the hash of the constitution must be included with every transaction, thus tying users to the document.
Multiple Processing EOS facilitates the parallel processing of smart contracts through: With horizontal scalability, the resource pool may be expanded to accommodate more computers and systems, which increases the transaction pace. Vertical scalability, on the other hand, boosts the transaction rate by boosting processing power.
To communicate, none of the parties involved must be present at the same time.
It speaks to a computer system’s capacity to effectively share and use information.
Independent Operating System As a decentralized supercomputer, Ethereum works. As a decentralized operating system, EOS offers a wide range of user-friendly and business-friendly features in contrast.
What is the concept of Accounts and Wallets in EOS?
The EOS wallet can be viewed as a repository for the public-private key pairs needed to sign blockchain transactions in the EOS system.
The EOS application that maintains private keys and controls EOS wallets is called keosd. Cleos can be used to access wallets (the EOS command-line tool).
Compared to other cryptocurrencies, EOS has a different account structure. In EOS, an account is similar to an on-chain identity with attached access permissions.
Depending on the restrictions, different persons may own different EOS accounts. An EOS account by default has two inherent permissions:
Owner – This permission identifies the account’s owner.
Active – This authorization is utilized for top tier modifications, producers’ polls, and money transfers.
Wallets and accounts have no inherent connection to one another.
How is the Cost to Build a dApp on EOS Determined?
Resource types, resource utilization, and resource allocation are the three main variables that determine the cost of constructing a dApp on the EOS platform. Let’s go into more detail about these three elements.
Resource Class For dApps, accounts use three different sorts of resources:
State Storage RAM
Network – Storage for logs and bandwidth
Computation and computational backlog on the CPU
Information that may be accessible from application logic is referred to as blockchain state storage. It contains information like order books and account balances.
Every time a user sends a transaction, network bandwidth is momentarily used. It is determined by taking the three-day average of data use, expressed in bytes.
Every time a user submits an action or transaction, a little amount of CPU bandwidth is temporarily used. This is estimated as the three-day prior average usage measured in microseconds.
CPU, Network — Staking
Based on the quantity of tokens held in a 3-day staking contract, the Network Bandwidth and CPU Bandwidth are distributed. With time, the used CPU and network bandwidth automatically regenerates, allowing you to use the staked tokens once more.
RAM RAM must be bought at the going rate, according to the Bancor Algorithm.
The Bancor Protocol introduced the Bancor Algorithm for tokens on blockchains for smart contracts in order to provide an independent liquidity mechanism and automatically calculated values. Automatic bandwidth release occurs for the CPU and network. However, RAM doesn’t become available until data from the account state is removed, at which point you can resell the RAM for the going rate.
What are the EOS dApp use cases?
The blockchain industry has embraced EOS well. On the platform, numerous applications have already been developed. Here, we’ll talk about a handful of these usage to give you an idea of the variety of applications.
Microsoft Energy Ledger
A renewable energy market called the Ubuntu Energy Ledger was created on the EOS blockchain. By 2030, 4 billion households will be powered by cost-effective renewable energy thanks to the application. The neighborhood relies on microloans and investors to support local enterprises, people’s houses, and the transition of Africa to renewable energy.
All_ebt Food Stamps
In order to assist low-income communities in addressing issues with financial inclusion and access to wholesome food, All ebt issues an EBT virtual card built on the EOS blockchain platform. In Puerto Rico, food stamps support nearly 45% of the population, including families, mothers with young children, the elderly, and people with disabilities (22% in the United States). However, because food stamps cannot be used online, they have been excluded and marginalized from the digital economy.
EOS Detroit’s flagship product, code-named “DACTROIT,” is a decentralized autonomous community (DAC) that gives communities the means to control complementary currencies and high-speed internet access. This is an experimental project to encourage and display many ways that individuals can share their connections, resources, and spaces.
Currently, the most popular blockchain platform worldwide is EOS or EOSIO. The decentralized applications created on the blockchain all provide services with practical uses and advantages. A wide range of other applications for uses including ride-hailing, music sharing, fitness tracking, digital payment, and more are being developed by EOS, who is now in the lead.
The speedier, more inexpensive, and safer EOS dApps have quickly replaced the more established blockchain apps. EOS has emerged as a legitimate champion of blockchain technology based on current trends and can offer significant advantages for a variety of business demands in the future.
We hope that this article on EOS has given you a basic grasp of the numerous facets of EOS/EOSIO blockchain technology. Get in contact with us so that our team can assist you if you have a business case for a decentralized application (dApp) that can be executed using EOS or if you would want to further develop a budding idea with the support of a blockchain specialist.