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What is EOS? Is it a good investment?

EOS was a built with a vision to beat Ethereum with superior transaction speeds and network scalability.

Posted May 31, 2021

Man holding an EOS coin to illustrate the topic of what is eos
Man holding an EOS coin to illustrate the topic of what is eos

As a decentralised system infrastructure, the EOS network (sometimes referred to as the EOS.IO network) is designed to allow developers to build decentralised applications (DApps) as easily as developing a web-based application. 

EOS claims to have a bandwidth of up to 4,000 transactions per second, and hence when EOS was developed, it has been dubbed as one of the ‘Ethereum killers’ in the crypto space, thanks to the allegedly faster and more scalable Ethereum-like capabilities. 

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What is EOS?

EOS took the cryptocurrency market by storm in 2018. Between 2017 and 2018, the initial EOS token initial coin offering (ICO) sales raised over $4 billion. This made the EOS ICO one of the most successful projects to date.

Popart visual of the EOS logo.

Fronted by celebrated blockchain developer Daniel Larimer, the vision for EOS was simple.

EOS was said to take on decentralised application development platforms, such as Ethereum, and beat it with superior transaction speeds. Specifically, EOS promised to provide network scalability, security, and improved ease of use.

EOS Blockchain key features

Decentralized apps (DApps) are the apps (including entirely new blockchain projects) which are developed on platforms like Ethereum. Instrumental in ICOs and Smart Contracts, DApps create the foundations of entire cryptocurrency based economies.

Image of EOS logo surrounded by digital boxes on a black background.

Up until the launch of the EOS blockchain, Ethereum was considered the go-to platform for DApp development. However, several issues had begun to frustrate developers.

Weaknesses in the Ethereum blockchain:

  • DApps can only run on Ethereum when users pay fees in GAS to cover the use of network resources.
  • Ethereum transactions take an average of 15-seconds to settle. Its major update towards Ethereum 2.0 will take some time to realise.
  • The Ethereum Virtual Machine which makes DApp development possible is often criticized as limited and challenging to learn how to use.

Strengths of the EOS blockchain: 

  • The EOS blockchain is entirely transaction fee-free.
  • EOS can settle thousands of transactions per second.
  • The EOS blockchain uses parallel processing to execute.
  • D’Apps and Smart Contracts are faster. (For the benefit of end-users).
  • EOS offers D’App developers a more user-friendly development platform and free app hosting.

To make free-to-use D’Apps and instant transactions a reality, EOS uses a self-funding delegated proof of stake consensus mechanism.

Unlike Ethereum which raises revenues using GAS payments, EOS generates 5% natural inflation each year. Funds are then shared between EOS block producers (network participants who process transactions.)

EOS.IO is the network, which is fueled by the EOS token as its cryptocurrency

Is EOS a good investment?

EOS has seen its good and bad days in the market. Based on technical analysis alone, the EOS/USD pair has hit two critical support levels at around $1.45 between 2019 and 2020. The rest of the time, the price frequently floats between $1.70 and $4.00, with more infrequent sharp spikes up to $23. 

EOS may be a great choice for traders who profit from the EOS tokens by quickly changing hands in a turbulent and volatile market.

However, investors should be aware that there has been some criticism towards EOS, claiming that the blockchain has been rushed to completion.

While holding EOS tokens could be profitable for the short term, we will have to look out for news related to EOS coins to be sure that the project is moving forward.

What is the future of EOS?

Despite the surrounding criticisms for EOS in its early stages, EOS has a good fundamental factor. Daniel Larimer and his team were in fact the inventors of delegated proof-of-stake (DPOS) consensus protocol, which has made it possible for networks like Polkadot to exist.

Larimer was also one of the founding members of other crypto companies Steemit, Graphene, and BitShares. As long as the right people make up the team, it doesn’t matter if speculators undervalue or overvalue the EOS tokens in the short term. 

Long-term price projects of EOS will therefore lean heavily on how well Larimer and his team will perform. 

How to buy EOS?

Have you taken the time to consider buying EOS? Great!

If you are interested in diversifying your portfolio to include a potentially disruptive blockchain technology such as EOS, you can head over to Easy Crypto’s guide to buying EOS, by clicking the link below.

Get started: Click here to buy EOS.

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Disclaimer: Information is current as at the date of publication. This is general information only and is not intended to be advice. Crypto is volatile, carries risk and the value can go up and down. Past performance is not an indicator of future returns. Please do your own research.

Last updated August 29, 2022

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