With the changing market trends and the dynamics of business analytics, technology has evolved too. A large part of it is evident in the trend-changing development of business applications and their management. The tremendous amount of potential and investment lies in the aspect of application development and administration. Hence, the ability to secure these with no loopholes is also something with a highly desirable potential.
On the contrary to the usual web-oriented commercial and personal applications, the blockchain system has gained momentum. These blockchain systems function on a decentralized methodology. This means that the apps (known as dApps) are moderated and run through either the blockchain or the P2P network that involves various nodes. This defies the system of a single control unit and hence defies the possibility of sole authority.
It makes the system decentralized and thus stands as an open-source network. By doing so, nobody, not even the original creator of the app or the service, has the authority to modify or remove the data imprint of another user. That remains on the network forever and can be at most edited by the original user only.
The Genesis of EOS
The original idea of the creators is to term the EOS as the most powerful and versatile blockchain system for decentralized applications. The protocol for the blockchain is that of a decentralized functioning mechanism. Through this, the idea is to support the development, growth, and commercial execution of the dApps in a revolutionary and efficient manner.
The choice of the main committee was to not allow any full form for the abbreviation of EOS. The idea was touted and given life by the Block.one firm, who went ahead and gave it the first look in 2018. It was the ideology of Brendan Blumer, CEO of Block.one, and the support team to fund the open-source system through the revenue generated by the distribution of their native cryptocurrency at the launch. Hence, the two primary entities of the idea became the:
- EOS tokens
While the EOS.IO is the blockchain protocol itself as dealt with until now, the EOS tokens are the cryptocurrency wildfire for the group. For the factor of funding the development and the widespread of the idea, the coin launch for the EOS tokens was executed by Block.one. At the event, one billion of the tokens were distributed with the idea of using the funding to support the further strengthening and growth of EOS.IO
The Development Core
Brendan Blumer is the brain behind the Block.one growth and the CEO of the firm. The man established himself as an aspect right from the teenage days when he developed a website with the service to sell the virtual assets. These assets would serve the utility for the online multiplayer virtual games. The idea even served the games such as World of Warcraft. Later on, Brendan went on to establish the network of the account. Soon after, the man launched the service of Okay.com that served for real estate brokers through virtual data sharing. Finally, his collaboration with Daniel Larimer is what led to the origin of Block.one
For a developer or a participant to function on the EOS.IO, the EOS token is an entry and operational cryptocurrency. Unlike the usual trend, EOS.IO encourages its users to hold the EOS tokens instead of trading or exchange. The more a developer holds the EOS tokens, the higher the services and the level of support and stake in the system.
However, unlike the proof-of-work (PoW) principle, the EOS token works on the proof-of-stake (PoS). This means that the tokens cannot be mined but rather awarded on suffice of block creation or development. To further regulate the value and extension of the stake, the limiting mechanisms are put in order. These are useful to reduce the incentive by making sure that the overall annual token supply does not exceed the value of 5% of the set parameter.
Through appropriate guidelines, the users can apply the EOS to avail of the right services for app development and commercialization. If a developer is not utilizing the EOS tokens or the services, the ability to allot or designate the bandwidth to a more active and needful user is present. The EOS token is readily available for purchase on various supportive cryptocurrency exchange platforms.
The decentralized blockchain ideology for the development and functioning of the dApps is not the first of its kind. There have been prior entries into the section for the given purpose. However, the common issues faced by most of these who hit the bottleneck after a given time is:
- Limited speed due to the higher number of transactions and processes per second on the same network
- Scalability issues due to false or unrelated transactions, spams, or coordinated attacks on the structure
- Flexibility concerns for the network due to the rigid structure of the original blockchain with multiple tasks
Because of these issues, the team at Block.one claimed to settle the ongoing issue through an innovative solution. The idea of simultaneous operations and the methodology of asynchronous communication is adopted for the easy way out from the above hassle. The major takeaway from the revolutionary methodology for the decentralized blockchain are:
- Simultaneous implementation of horizontal and vertical scaling for higher network scalability
- The firm claims to enable millions of transactions per second through their decentralized functionality
- Segregation of processes based on their nature to keep a higher rate of efficiency
In the basic principle of work, the EOS is almost similar to a computer software program, albeit much smarter. The hardware resources are utilized from the comprising members of the lot, i.e., the users themselves. This means that all the hardware essential for the running and functioning of the network, and the dependent apps are through the user systems.
Another relevant point of difference from the other contenders in the reckoning is that EOS does not incur transactional charges. Because of the core value of holding the EOS tokens and using them as the deposit source for the stake and service claim, the auxiliary charges are rendered useless. Hence, in the long run of the scheme, the user, i.e., the developer, essentially avails the service for hardly any cost.
The idea is to levy no charges and instead provide a smart contracting platform for the user to work with. The major stakeholders and the coin distributors are the ones who are responsible at large for the financial turnaround. With the services segregated and the load distributed on the decentralized network, the protocol is essential of the essence for efficiency, user affordability, and future growth inclusiveness.
With all the essential traits, the functioning of the blockchain protocol provides the user with:
- Development network and features for large scale industrial and commercial applications
- Advanced resources for the growth and scaling of the dApps
- Database storage and imprint for authentication and implementation purposes
- Maintenance and verification of the user and the financial accounts for the relevant applications
- Enable millions of micro-transactions to fasten the speed and eliminate the possibility of the network downtime for equal growth resources to every application
Future Implementation and Prominent Issues
The entire idea of implementation of a decentralized blockchain protocol is to revolutionize the future of commercial application development. Through this, the limitations of a definite software configuration or hardware access are completely eliminated. The most prominent implementation points highlighted by the Block.one core team as the core of their focus are:
- As a result of the elimination of single overriding authority, the issue of transparency for every user is resolved.
- The integral involvement of every user or node for the development and growth of the network. The imprint of the user remains permanently on the network and can only be modified but not eliminated.
- Elimination of transaction charge based mechanism and indulge in cryptocurrency asset stabilization. This comes valid through holding the EOS tokens as the weighing proportion for service access and modification privilege.
- Steady value of the EOS token against the fiat currencies through the principle value of withholding the currency rather than active exchange.
As the idea is still under development for the major portion, the issues have been visible too. For example, post the launch itself, the network had a relatively frozen stand until after a while when normal services resumed. However, an array of common questions have been raised onto the progressive viewpoint of the network.
Because the network does not levy charges for transactions and services, hence investments are attracted through coin distribution. This means that the possibility of centralization and too many interventions from any state entity with a majority stake is possible. Also, there is little or no share of revenue generation for the contributors of the decentralized network. The primary concern is the largely exhaustive powers that are provided to the token holders. The structure, less profitable to the contributors, is amendable. However, the neutral stance of the Block.one upon the governance issue for the EOS.IO structure and revenue pattern can hinder the future willingness of the major investors to comply.