What Is EOS and How Does It Work
April 17, 2020
Ever since its inscription, the blockchain technology has been widely applauded for all the benefits that it brings to the table. The capabilities of this revolutionary technology are merely limitless.
Initially, when Bitcoin was born, the only possible benefits of blockchain technology was in the financial sector. However, Ethereum helped to broaden this view with the introduction of smart contracts.
Now, with so many possibilities, the only thing holding this amazing technology back is the slow processing speeds that it has to offer. While Bitcoin can process only three to four transactions every second, Ethereum can process fifteen to seventeen transactions. This slow speed is insignificant when compared to centralised counterparts like Visa that process 1667 transactions every second.
EOS aims to solve this slow transaction speed while being able to maintain all of the other benefits of the blockchain. In this article, we will take a closer look at how EOS aims to achieve this mammoth feat.
What is EOS?
EOS was one of the few fantastic projects that were the direct result of the ICO token feature of the Ethereum blockchain. Started as an ICO in 2017, EOS attained the name Ethereum killer as it possessed all the features of the Ethereum network with the addition of ridiculously high processing speed. One million transactions per second! It was the transaction speed that EOS claimed to be able to achieve. This high speed is currently not possible by even the centralised solutions out there.
With such high speeds, EOS opened up the boost in the development of DApps (Decentralised Applications) on its platform. Since EOS possesses all the features that the Ethereum blockchain has to offer, everything from smart contracts to DApps can run faster on the EOS network.
Blockchain projects such as BitShares and Graphene offer very high transaction speeds. However, they lack the smart contract feature that makes the Ethereum blockchain so unique. EOS combines the best of both BitShares and Ethereum and has come up with the perfect solution for today’s world.
What Are The Features That Make EOS Unique?
EOS possesses several characteristics that make this blockchain network special. Some of these characteristics are:
EOS is Scalable
It is one of the biggest problems that most of the blockchain networks face. Even though blockchain technology was successful in eliminating the difficulties faced by centralised systems, they were not able to completely replace these systems.
It is because blockchain technology suffered immensely when it came to scalability. In 2017, just as Bitcoin became immensely popular, the network was not able to handle the additional load. As the transaction verification time increased drastically, people started to realise the scalability problem, and eventually, the digital assets bull run ended.
The reason for the slow transaction speeds on other blockchains is because every node on the network has to come to a consensus. This is not the case on the EOS network. Due to the DPOS (Delegated Proof-of-Stake) Consensus mechanism, the EOS blockchain is capable of processing millions of transactions every second.
Seamless DApp Performance
Decentralised applications are very useful for leveraging the benefits of the blockchain network. However, it also means that they also inherit the slow transaction speeds.
It could be devastating for a user of the DApp. Since EOS blockchain is capable of processing millions of transactions every second, it has become the ideal network to launch DApps on. Some of the many use cases of EOS DApps include games, gambling and social media platforms such as Voice.
EOS is Flexible
The EOS network is exceptionally flexible. Unlike the Ethereum network, which came to a standstill after the DAO attack, EOS blockchain has been built in a way to handle such problems.
If there is a possible attack on the network, the node processing such a transaction is halted while all the other nodes continue to function as usual. The halted node continues to process blocks only after the network has handled the problem.
It is another reason for the fast processing speed of the EOS network. By making use of parallel processing, EOS blockchain has been able to reduce the overall runtime of the entire process successfully. Thus, making any transaction on the network extremely fast.
Decentralised Operating System
The Ethereum network has often been referred to as the decentralised supercomputer. EOS is the decentralised operating system. It is one of the most critical features of the EOS blockchain. That is also the reason why there is a lot of focus on the EOS network.
What is DPOS?
One of the main reasons for the fast processing speed of the EOS network is due to the DPoS Consensus method that has been employed. For EOS, DPoS acts as a decentralised tech-based democracy which accepts voting and an election process to form a consensus. It does all of this without outside centralised interference from governments or organisations. Unlike other blockchain networks where miners mine the blocks and verify transactions, EOS makes use of a Delegated Proof of Stake Consensus method.
Blocks on the EOS blockchain are generated as rounds of 21. Every EOS token holder can choose the 21 producers who verify the blocks. At the start of every round, the selection of block producers is complete. These producers are shuffled based on the block time and a pseudo-random number generated by the network. These producers are then responsible for verifying the transaction present in a block.
The block time on the EOS network is set to three seconds. It means that every three seconds, a new block enters the blockchain. The producer should be able to validate each and every block correctly.
If a producer fails to do this, they will be punished by being removed from the consideration of being a producer. The average time taken by the node to confirm a block of transactions on the EOS network is just 1.5 seconds. Thus, making it a high-speed blockchain network.
In conclusion, EOS is a project that has all the features that the Ethereum blockchain has to offer, along with breakneck processing speed. These two form a deadly combination in creating the perfect blockchain. Since EOS is competing with Ethereum, which is already miles ahead, it will undoubtedly be challenging to be able to replace Ethereum completely. This competition between the two will certainly help the whole blockchain technology to get better and be accessible to everyone. As there are many DApps yet to be released, there is plenty of opportunities to see value added to this digital assets.