EOS (EOS) current price is $5.433 with a marketcap of $5.53 B. Its price is -0.98% down in last 24 hours.
- EOS (EOS)
- Live Price $5.433
24h % -0.98%
- Market Cap$5.53 B
- Volume$765.54 M
- Available Supply1.02 B EOS
More Info About Coin
A recent addition to the cryptocurrency field is EOS coin. It is being developed as an improvement of Ethereum, the technology that introduced the concept of the smart contract and has been a favorite of many cryptocurrency investors.
The Chief Technology Officer leading the current project is Dan Larimer, who has several successes in the blockchain area, including Bitshares. Its current price is about $8 USD.
The basic idea behind EOS is to improve upon Ethereum by creating a technology that accelerates the number of transactions per second by a factor of thousands. This improvement allows EOS to be used on massive platforms such as Facebook, which is integrated, will mean significant profit for its miners.
From a numbers perspective, Ethereum current can handle about 15 transactions per second. Our example of Facebook as a potential adopter of EOS, handles 52,000 Likes per second. Another platform that is more in line with the financial specialization of Ethereum, VISA, handles 20,000 transactions per second.
So for Ethereum to be adopted it is clear that its scalability must increase. Hence, EOS. But the current view on scalability requires transactions per second to reach the million mark, so it is clear EOS is a starting point for the improved scalability.
As you continue to read this review, keep in mind that the key to Ethereum is decentralization. The more centralized an app becomes, the less Ethereum-like it will become. Also, it’s not as if the Ethereum developers have been sitting on their hands on this issue.
One of the improvements to Ethereum will be what is called “parallelization to scale.” In Ethereum, each node must execute the same transaction. In EOS, this parallelization allows multiple transactions simultaneously, clearly solving the scalability issue.
Another improvement is doing away with miners and mining, and using a Delegated Proof of Stake technology in its place. The way it works is 21 delegates are created. These 21 delegates are voted on and continually updated by the EOS stakeholders.
A block will be randomly created every 3 seconds, or roughly 21 blocks per minute. Any of the 21 delegates that are not performing up to speed will be voted out in the next round, maintaining the critical transactions per second requirement needed for massive scalability.
While all of this sounds like the step up needed for scalability, one of the key problem areas lies in the aforementioned decentralization – at least according to Ethereum creator Vitalik Buterin. He maintains that the more nodes that are created the less decentralized the platform will become because of the delegate approach.
The “winners” in the delegate system will be the ones that everybody knows about, and will be the focal point for security issues such as Denial of Service attacks.
So according to Buterin, EOS falls short of the Ethereum model because it sacrifices security for what it gains in scalability. The entire point of decentralization is to provide transaction and system security on a previously unheard of scale. Of course, this issue is a matter of debate by the EOS developers, so as with many things related to the development of cryptocurrency, time will tell.
That raises the question of who will be willing to take a chance on developing applications for EOS. The current answer is quite a few, in part because there is a $1 billion investment in the EOS project targeted at developers. A noticeable problem is that Dan Larimer, who is leading the development of EOS, is likely to be leaving once EOS is deemed to be up and running, and presumably “stable.”
For investors and developers, the question then becomes who will be managing the future development of EOS.
As for the actual current value of EOS, though it has been pegged at around $8 per coin, the real value will not be known until it becomes an accepted platform. With $1 billion being put into the development kitty, it is likely that the time frame for seeing actual results – ad revealing the real world problems – will be sooner than later. From the perspective of a casual observer, there seems to be many people who want to see EOS become successful.
EOS token distribution began as an ongoing event on June 26, 2017. Its high price was about $21 in April of this year, with a low of $5. So the current value of $9 is about right after the dust has settled.
Its upside will obviously depend on its proven ability to effectively handle large scale transactions and continue with the decentralized security that cryptocurrency investors demand.
With all the potential of EOS, what cannot be overlooked is the uncertainty factor. This holds true in the security and scalability discussions, but extends into the development team as well.
Once Larimer departs, who will be solving any security issues, issues that can bring down the platform in minutes? And provided that the initial scalability technology proves to be a success, who will step in to take it to the next level?
Pros & Cons
|Decentralized operating system (better than Ethereum?)||The mainnet only launched in early June, so the technology is largely untested|
|It is built tо bе ѕсаlаblе and upgradeable|
|Faster transactions per second, easy to use and stable|
BCrypto Investment Tip
EOS ended its ICO in June this year raising over $4 billion making it the largest ICO in history and there's a reason why they were so successful. EOS is often seen as the better Ethereum and I agree. They are working towards being able to handle millions of transactions per second without any fees, which is better than anything in the world right now, but they are still far from achieving that. I do believe EOS will overtake Ethereum one day, but there are other similar projects working on the same thing and they might also overtake EOS. But if EOS succeeds in achieving what it promises it will easily be adopted by the mainstream.