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

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

Posted August 21, 2023
Last updated August 23, 2023

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.

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.

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.

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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.

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

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.

Screenshot of Easy Crypto Homepage showcasing the EOS and NZD pairing.

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.

Step-by-step guide on how to buy crypto

  1. Sign in to your Easy Crypto Account

    If you haven’t already, login to your Easy Crypto account using your credentials.

    Easy Crypto Sign In

    If this is your first time – welcome! Click on the Sign Up button on the top right to create an account and proceed with the account verification process to get started.

  2. Select EOS (EOS) as the cryptocurrency you want to buy

    Once you’re logged in, return to the homepage and select EOS from the drop down selection of crypto assets.

    Alternatively, you can also visit the EOS coin page where you can see the price history and use the crypto converter tool to simulate the current rates for EOS.

    Aftewards, enter the desired amount and proceed to click the Buy Now button.

  3. Enter your wallet’s receiving address

    Next, enter your wallet’s receiving address for the corresponding crypto you want to buy.

    What’s a wallet receiving address? Your crypto needs a home! Before choosing to buy a cryptocurrency, make sure you download a crypto wallet software that can store it for you. Follow the instructions carefully on how to set up, receive, or transfer crypto.

    Don’t have a wallet yet? Read our quick guide on setting up a crypto wallet.

    Gif screenshot of entering crypto wallet address.

    Alternatively, you can also click on I don’t have an address! button and we can offer your other options.

  4. Select your preferred payment method

    Choose from the selection of payment methods that you prefer.

    If you choose to pay with Account2Account or POLi pay, your order should be fulfilled shortly after payment confirmation – depending on the coin type and network congestion.

    If choose Bank deposit, your order will be processed and delivered once we receive your payment in our account with the correct reference – this can take a few hours or even days if the payment was sent over the weekend, as banks only process transactions during business hours.

    Screenshot of payment methods at 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.

Further reading: Explore our learning Hub for all things crypto.

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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 23, 2023

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