EOS

EOS (EOS): A Comprehensive Guide to the Blockchain Operating System

What is EOS (EOS)?

EOS (EOS) is a blockchain-based platform designed to enable the development, hosting, and execution of commercial-scale decentralized applications (dApps). Launched in 2018 by Block.one, EOS aims to solve the scalability issues faced by earlier blockchain platforms like Ethereum while eliminating transaction fees and offering faster processing times. The EOS platform functions as a decentralized operating system, providing essential core functionality to developers, such as accounts, authentication, databases, and asynchronous communication across the network.

How Does EOS (EOS) Work?

EOS operates using a consensus mechanism called Delegated Proof of Stake (DPoS). Unlike traditional Proof of Work (PoW) systems used by Bitcoin, EOS's DPoS allows token holders to vote for block producers who maintain the network. These 21 elected block producers create blocks and validate transactions in a round-robin fashion.

The EOS architecture consists of two key components:

• EOS.IO: The software that implements the blockchain architecture
• EOS token: The cryptocurrency that powers the network

One of EOS's distinguishing features is its ability to process thousands of transactions per second without charging transaction fees to users. Instead, resources like bandwidth and computation are allocated based on stake in the network.

EOS (EOS) Staking and Resource Allocation

EOS does not offer traditional mining but implements a staking system for resource allocation. When you stake EOS tokens, you're not earning new tokens in the traditional sense of staking rewards. Instead, you're allocating network resources to yourself or others.

The EOS network utilizes three main resources:

• CPU: Processing time for contract execution
• NET: Network bandwidth for transferring data
• RAM: Storage space for contract data

By staking EOS tokens, users can acquire CPU and NET resources proportional to their stake. These resources regenerate over time. RAM, however, must be purchased through the network's built-in marketplace.

Voting and Rewards in EOS

Although EOS doesn't offer traditional staking rewards, token holders can earn returns by voting for block producers who share a portion of their block rewards. Some block producers return a percentage of their earnings to their voters as an incentive. Additionally, EOS holders can delegate their tokens to REX (Resource Exchange), a marketplace for renting CPU and NET resources, which provides another way to generate passive income from held tokens.

What is EOS (EOS) Used For?

EOS has several primary use cases:

1. Developing Decentralized Applications

EOS provides developers with an ecosystem to create and deploy scalable dApps with user-friendly interfaces. The platform supports complex commercial applications with its high throughput capability.

2. Creating Smart Contracts

The EOS platform allows for the creation and execution of smart contracts using C++ programming language, making it accessible to a large developer community.

3. Governance

EOS token holders participate in on-chain governance by voting for block producers and on protocol upgrades through the Constitution and referendum system.

4. Resource Allocation

As mentioned previously, EOS tokens are used to allocate and access network resources required for running applications on the blockchain.

EOS (EOS) Token Distribution and Launch

The EOS token distribution was one of the longest token sales in crypto history, lasting 341 days from June 2017 to June 2018. Block.one distributed 1 billion EOS tokens through this extended ICO:

• 10% (100 million tokens) were reserved for Block.one
• 90% (900 million tokens) were distributed during the public ICO

The distribution method was designed to encourage a wide range of participants rather than allowing wealthy investors to purchase large amounts in a short period. The ICO raised approximately $4.1 billion, making it one of the largest token sales in history.

Upon the mainnet launch in June 2018, the ERC-20 placeholder tokens used during the ICO were frozen and replaced with native EOS tokens on the new blockchain.

Governance Evolution and EOS Network Foundation

In late 2021, the EOS community established the EOS Network Foundation (ENF) to provide strategic leadership and funding coordination after relations with Block.one deteriorated. The ENF has since taken a leading role in EOS development and ecosystem funding, marking a significant shift in the governance structure of the network.

Trade EOS (EOS) with Cryptohopper's Automated Trading Bot

Whether you're an experienced trader or just getting started, EOS (EOS) is available to trade on numerous exchanges using Cryptohopper's automated trading bot. Cryptohopper allows you to set up sophisticated trading strategies for EOS and other cryptocurrencies, functioning 24/7 to help maximize your trading potential through automated buying and selling based on market signals and technical indicators.