What are the characteristics of EOS?
EOS.IO is a decentralized platform which uses a blockchain technology designed for smart contracts, decentralized applications, and data storage. The platform was built in a way that enables both vertical and horizontal scaling of smart contracts. The system operates without any fees and enables millions of transactions each second with much lower energetical demands than those of Bitcoin, for example. In order to use the platform, you must possess EOS tokens. The computational power you can use on the network depends on the number of tokens you have.
History of EOS.IO
The EOS.IO platform was developed by the private company block.one. It was first introduced in 2017 and officially began running on June 1st, 2018. It is an open-source platform. In order to ensure wide use of the platform, the tokens were distributed as ERC-20 tokens (ethereum). This made it possible for anyone to use the platform. Currently, this network is undergoing dynamic growth and it has become the leading network based on the highest number of transactions processed within 24 hours – it has surpassed better-known networks such as Bitcoin, Ethereum, or the FIAT network VISA.
Principle of operation
The EOS.IO platform achieves its goal – enabling horizontal and vertical scaling of smart contracts – by dividing the application into multiple threads which can run in multiple computer cores, and by using a delegated proof-of-stake. This is a principle in which transactions are verified by so-called delegates. There are 21 of these and their task is to ensure the operation of the blockchain, to verify transactions, and to generate new blocks (which happens approximately every 3 seconds). Delegates are chosen in a voting process. The more tokens you hold, the bigger weight your vote has. Delegates can be recalled by voting as well. Using the proof-of-stake principle is what distinguishes this network from Ethereum which is still uses proof-of-work for verifying transactions.
What is the difference between a cryptocurrency and a token?
Cryptocurrency – digital payment tool based on cryptography. Its main characteristics include decentralization and it operates on the basis of blockchain technology. Cryptocurrency cannot be falsified. The main goal of cryptocurrencies is to serve as a payment tool – a means of exchange that can be carried out anywhere in the world and at any time. Cryptocurrencies include for example Bitcoin, Litecoin, Dash, or Zcash.
Token – they primarily function as a payment tool in the specific network to which they belong. For example: EOS is the token on EOS.IO platform, Binance Coin is the token on the cryptoexchange Binance , ADA is token on Cardano platform. The purpose of tokens is not to fulfill the function of a „worldwide“ payment tool, but rather to function as a „fuel“ for carrying out smart contracts or running decentralized applications.
Number of EOS tokens
The network’s unit is the EOS token. The total number of tokens is 1,006,245,120. However, there are only 906,245,118 tokens in circulation, which is 100,000,000 less – these 100,000,000 were kept by the developers with 5% inflation. Tokens are not divisible.
All time high: 22,89 USD (29th of April 2018).
The best way where purchase EOS is on cryptoexchange Binance which allows you to purchase EOS by exchanging for Bitcoin. On Binance you can buy cryptocurrencies up to 2,500 USD via credit card without identity verification.
If you are planning on storing EOS in a hardware wallet, use the ones of the wallets pictured below.