What is the Eos Network (EOS)? How Does It Work?

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.

Key takeaways

• EOS is a platform that enables developers to create business-level applications on the blockchain, call decentralised apps (Dapps).
• EOS is designed to support Dapps on a commercial scale to support businesses that can leverage blockchain technology.
• Features that EOS provides for developers and businesses include secure authentication processes, data hosting, user management, permissions, and comms between Dapps and the web.

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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.

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.

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.)

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 in New Zealand?

With all that said, what are your personal thoughts on EOS?

As prefaced, EOS has a good foundation to start with and also the team behind it are some of the most brilliant minds in the blockchain space. If you’re interested in where EOS is heading in the future, consider adding it your crypto portfolio.

Here at Easy Crypto New Zealand, we make it easy for anyone to buy, sell, and exchange EOS and over 160+ cryptocurrencies.

We are a non-custodial exchange, meaning we deliver your crypto orders directly to your wallet address – no third parties, or centralised exchanges involved – you hold true ownership of your assets.

Invest in the EOS Network: Buy EOS with Easy Crypto.

Follow our guide below for a step-by-step guide on how to buy EOS with Easy Crypto.

And that’s it! Be sure to check the email address associated with your Easy Crypto account for the order confirmation, and also check your crypto wallet for your purchase.

Need a visual guide? Check out our video guide on how to buy crypto with Easy Crypto below!

Feel free to reach out to us with any inquiries and questions you may have! We are always ready to help.

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