All about the EOS coin, and where to buy it.
“EOS” isn’t an acronym. It’s simply what the system is called. Some of the suggestions about what it could stand for are “EOS Operating System,” or “Ethereum On Steroids.”
The second interpretation is what could be attracting many traders. The Ethereum smart contract system has already proved itself, but it isn’t very user-friendly and has some scaling problems. Some people believe that by overcoming these, EOS will become the new Ethereum.
EOS is designed to be a much more scalable and easier-to-use version of Ethereum, but with a similar range of functionality. It aims to offer a blockchain network where anyone can participate safely and without any particular technical knowledge, while also offering a full range of advanced features where desired.
Its specific features include the following:
- A user-friendly software interface for the platform
- Horizontal and vertical scalability
- Human-friendly features such as the ability to set delayed transactions
Where to buy EOS in Australia
You can buy or trade for EOS at any of the following exchanges.
Wallets for EOS
Just as for any cryptocurrency, you’ll need a compatible wallet.
Currently EOS is still being handled on the Ethereum blockchain as an ERC-20 token, but the eventual plan is to migrate it onto its own network. You’ll be able to take all of your tokens with you when that happens.
Until the EOS network is live, any ERC-20 compatible cryptocurrency wallet that can hold Ethereum should also be able to hold EOS tokens.
How does EOS work?
The main feature of EOS is its computer software. It’s designed to make full use of a machine’s processing power, such as by letting users schedule applications across multiple CPU cores or clusters. This essentially puts a lot more processing power into the blockchain at much lower cost, while retaining features that are similar to Ethereum, such as smart contracts.
In addition, EOS uses a unique processing algorithm, called delegated proof of stake (DPoS) This is intended to be a more efficient and flexible way of doing things.
With these features you get an advanced blockchain network with a range of advanced functionality, plus:
- No transaction fees
- Exceptional scalability, and a system able to handle millions of transactions per second
When blocks on a blockchain are created, they process transactions. However, someone has to create these blocks at the cost of electricity and processing power.
The EOS DPoS system is designed to automate the work, while minimising the costs involved. It aims to lower them to the extent that the entire network can be run without transaction fees. It does this by ensuring that users are automatically compensated with small amounts of EOS for producing blocks.
There is no set limit on the number of EOS tokens, so the system can theoretically run indefinitely, and the tokens awarded to block creators don’t actually have to come from anywhere. They can simply be generated as needed, in a process that imitates very gradual inflation.
To prevent tokens from becoming worthless, despite having an unlimited supply, inflation is set at a gradual and predictable amount.
Under DPoS, the system automatically picks block creators from among all users who opt into it. The selection is random, but weighted by the number of EOS tokens a user holds. The more EOS coins someone has, the more likely their collection is to “earn interest” over time as they contribute to the system
This is how the public EOS system works.
EOS can also be operated in closed blockchains under admin control. For example, a company might purchase EOS tokens and then distribute them to its administrators to conduct its own transactions on its own network.
What gives EOS tokens value?
The DPoS system means EOS token holders can gradually increase on the amount held in their account to help cover the electronic, computing and other costs of using the system.
Plus, an EOS token buy-in is required to use the system. When the number of users increases quicker than the gradual inflation built into the system, the value of each token may also increase.
What makes EOS so user-friendly?
EOS aims to create a platform that anyone can use. It does this with a few features in particular.
- Human-readable account addresses. EOS permits accounts from 2-32 characters in length that can serve as secure and reliable identifiers.
- Clearer information. You won’t need programming or other technical knowledge to understand contracts on the blockchain.
- Reversals and delays. Contracts can be implemented with a delay, as desired. For example, you might have instant transactions to buy a cup of coffee with EOS, or a week-long cooling down period when purchasing a house or car.
- Account restoration. If a user’s account keys are stolen, they can be recovered within 30 days. This is done with a designated account partner who allows the original user to recover their account with two factor authentication. The idea is that thieves have nothing to gain from recovering an account, because they’ll only risk exposing themselves for no gain.
- Separate ecosystems for users. Businesses might have their own EOS environments customised in their own ways, while the general public might interact in the primary EOS ecosystem.
Things to consider before buying EOS?
Few other cryptocurrencies have developed a scalable and sustainable model for rewarding user engagement and operation of the network, and tied it into a user friendly experience.
Ethereum in particular is known to be a useful currency, but hampered by scaling problems and a poor user experience, making it a good foundation for EOS to build on.
If it manages to solve these problems successfully, it might become one of the world’s main blockchains.
However, it’s still in the relatively early stages of development, and some of the main challenges, like a migration to its own blockchain, are still ahead of it.
It’s also possible that some of the user-friendly features might have unforeseen results and end up being a poor match for user needs on the blockchain.