At the time when I was beginning to conduct research on blockchain technology and begin to understand the basic concept of how the technology worked, my curiosity urged me to scan the top 100 tokens listed on Coinmarketcap and surprisingly found “EOS” placed on top of that list so I started to learn more about EOS and found out that this coin was different from the other coin I mined before.
It’s very confused to understand the utility of EOS in the beginning, why it is ERC20 smart contract run on Ethereum and did not has its own blockchain. The more I get to know this coin, the more I see how interesting this coin is.
Since there’s quite several things to learn about EOS, I would like to separate and categorized topics into many chapters where you can use this blog as brief references on EOS contents.
EOS, in my point of view, is the infrastructure or eco-system prepared for any businesses to run their Decentralized Application or “DApp” to serve their businesses.
One way I normally use to explain is to compare EOS as “Department Store”, DApp as “Shop Owner” and the user of EOS DApp as “General customer who stroll the department store”.
The department store’s goal, is to provide rental spaces & support utilities for Shop Owner to setting up their sales & services channel and also for the general customer who will look around and shopping for goods & services from the shop. EOS smart contract can be compare with shop’s products & services offering to any customer strolling the department store.
Given this metaphor, the way I value EOS is to understand the value and utility of DApp offering and the number of customer using the DApp.
EOS is a very long-term fundraising project that has spent a total of 350 days raising about $4 billion. This is why many people still asking for the plan and direction of how the project will use the fund to build something that really create value for all EOS holder.
The fundraiser ended on June 1, 2018, after which it announced a follow-up process to guide group of EOS Block-Producers to start and maintain the Mainnet. After 9 days of preparation, on June 9 2018, Block-Producers were agreed that Mainnet will be scheduled to open on June 10, 2018.
This is the reason why EOS does not have its own Mainnet during the 350 day fundraiser, and instead using ERC20 on Ethereum to represent the EOS investment. After EOS Mainnet was launched, the owner of EOS ERC20 were required to follow instruction to “claim” EOS on its own mainnet.
I’m quite excited with the way people behind EOS project are trying to boost up the progress of the project which will make impact to the cryptocurrency landscape in the future and especially how they are trying to get mass adoption by influence people to stay along with the platform in the long run. It’s kind of like the way we are impressed by the department store, if we have good experienced, we would not go to the other store.
The following is the list of smart way to increase good experiences that I found in this project.
- “Zero” Transaction Fee. I personally think that this is a very ingenious way to change things and get real attention from the mass. We would really not expected to pay any kind of fee when we stroll the walkway looking around for the product and services we would like to do business with. While other EOS-Alike platform still charge the fee from user who decided to use the DApp provided under that platform, EOS kind of not using this model but charging the expense to the DApp owner instead, kind of like the “Pay As You Go” usage expenses, that DApp owner will cover the expense-related for all the user in the platform. While DApp owner would get some profit from product / services that they provide for the end-customer.
- Block Producer Reward and Voting. Block Producers are group of people or business entities who are nominated by winning the “vote” from EOS holder. They are the most important players in EOS ecosystem due to their main role in creating the block on EOS blockchain and their right to cast vote on important decision of how the system works.In order to maintain the “Block Producer” position, each block producer need to keep on holding the winning vote position from EOS holder. This is the key driver for Block Producer to keep on building or providing tools and services for EOS community.In return, winning block producer will get financial-rewards by providing all these services.
- High Speed Transaction. Timing is always one of the key to success. Instead of chasing the market leader like Ethereum where Vitalik Buterin, Ethereum co-founder, is trying to solve the problem of scaling Ethereum network to support millions and millions of transactions in the future or position EOS to compare with new breed of “High-Performance Blockchain” like Zilliqa (ZIL), Quarkchain, Holochain, EOS chose to provide the platform that has acceptable scale, not necessary to reach millions, if considered that the platform also providing many many DApps for the user smoothly. The user experience would be good enough and lead to more adoption.
- Web Assembly. The more DApps that bring values to the end-customer, the more adoption. Also the easier the way to develop DApp, the more DApp developed. There quite a number of programmer/developers who has experienced and skilled on traditional programming language such as C/C++/Rust. Web Assembly allow all these skilled person to develop DApp for EOS .
One of the key success factors in crypto-space is the governance structure of the leading person or organization who will keep on developing and maintaining the technology for the future. Not like Cardano or “ADA”, one of EOS competing cryptocurrency, where the governance structure is separated with clear role and responsibilities for several related entities who get involved. EOS was solely created and developed by one company, Block.One, which might create some issues relating to the company’s positioning and its influence over the future of EOS after MainNet launched.
Block.One performs all key activities for EOS, mainly the Open Source Software called “EOS.io” (IOHK for Cardano), the protocol, procedures, and standard for EOS community to interact with each other. (Cardano Foundation for Cardano) and also preparing and building up development environment to motivate developer to create DApp for EOS ecosystem, for example, Block.One will search and make business deal with VC (venture capital) who might interested to invest in new technology and become the source of fund for new project.
Block.One may also setting up events like “Hackathon”, the contest to propose new idea and project based on EOS platform where the winner will get funding for their ideas and eventually might turn into real project in the future. This will surely attract new talent, skilled, and experienced developer to come, stay, nurture this project in the future. (Emergo for Carano)
In my opinion, this many roles Block.One try to fulfil required high disciplinary, high intelligence, and experienced team member who need to work closely together and be prepare to switch focus and effort to deliver as plan. I would prefer the way Cardano organized more.
Block.One was founded by young 31 years old American entrepreneur, name Brendan Blumer. He found his first tech-company in Asia when he’s only aged 15 years old. On 2002, he found GaMeCLiFF, this company provide the system to buy/sell game items, and after 3 years on 2005, he sold his company to Internet Gaming Entertainment, which now already change the name to “IMI Exchange”
On 2007, Brendan Blumer found new company called Accounts.net who sold game “Avatar” game with the revenue over $1 million. On 2010, he found Okey.com, real estate broker.
On 2013, he found “ii5”, organization with the mission to bring experts and practitioners from Silicon Valley and any other places all around the world to work in his Asia-Based company. Ii5 will provide funding for both his old and new businesses operations based in Hong Kong.
2014 was the first year for Brendan to get involved with blockchain technology and later on 2016, he partnered with Dan Larimer to found “Block.One” which currently he is CEO of the company.
For Dan Larimer, currently he is Chief Technology Officer (CTO) of Block.One, he is one of the most experienced Blockchain developer. His former project was Steem and Bitshares which proof his expertises in the field. You can also check the statistics from Block Activities
Using Blockctivity.info, we will see that currently (August 8, 2018) Ethereum has the number of operations on its Blockchain around 626,000 transactions during its last 24 hours which consume 100% of its Blockchain capacity and cause around 47,700 unconfirmed transactions to wait for miner to confirm the transaction and get through.
When compare to Steem, the transactions was around 1,224,000 (August 8, 2018) almost twice of Ethereum, but the network capacity was utilized at only 0.10%.
Finally, if you check for EOS, now it’s the top rank given its 6,654,000 transactions during its last 24 hours (5 times of Steem, and 10 times of Ethereum) but only utilized 0.55% of its capacity.
However, each Blockchain was designed to work for different purposes, and the technology applied were different, so we cannot compare them using the amount of transactions only, iit’s not “Apple to Apple” comparison, but the indicator provided by Blocktivity might give us some basic idea of how to evaluate the potential of the technology in the future.
Dan Larimer has been involved with cryptocurrency and blockchain technology since the beginning. He has joined discussion in Bitcointalk since mid 2010 using alias name “Bytemaster”. He also use this same alias on GitHub, Telegram. So he should be the person who understand the implications of technology towards changes in the system and how things will be. He once stated that he belief bitcoin will be the future currency of the world.
One of the proof of his deep understanding was his statement on the issues of Bitcoin 10 minute Block times confirmation and the micropayments problems where the Bitcoin’s transaction fee will be too expensive to transact which he shared his insight since 2010. Now we already understand the problems and just complete the launching of “Lightning network” to solve the problems, almost 7 years later. https://bitcointalk.org/index.php?topic=532.0
Not only Bitcoin, on 2014, while Dan still worked as CTO for Bitshares, he foresaw the scaling problems on Ethereum network cause by the smart contract that required more space to store data on the Block. He suggested the solution to add more “Layer” to solve this problems which now Ethereum developer is currently try to address the problems in the same direction as Dan suggested.
In my opinion, Dan not only use his knowledge based on the technology only, he also used his experienced based on economics, deep understanding of human behaviors, market, all to help develop the foundation of EOS.
For Block Producer, the key responsibility is to produce the “Block” for EOS blockchain. But that’s not all, they are expected to manage, maintain, and provide support and services to provide system stability. One of the Block Producer’s role I’m quite interested is the process for EOS holder to make “Deposit” as “Vote” which technically call “Delegate Proof Of Stake : DPOS”. I’m quite agree with this concept because to get involvement from people until adoption, people should have provide some of their own resources such as their “time & work effort” or staking/deposit “something of valuable” to the system and in return they will get some gains or losses working or staking with the system.
I believed that when people got involved, they will put more effort, give opinion, collaborate as community to set the direction that will add more value to the system and then increase their return from the system. EOS set 21 winner Block Producers for each voting round, this 21 winner will get the highest return for their effort and services spend to maintain and manage EOS ecosystem, the other Block Producer who were not winning the 21 vote are called “Standby Block Producer”. They will also get some return for their effort but with the lower rewards because they have to share the rewards among all of the Standby Block Producer.
The most important EOS event for this year is the EOS Mainent Launch where all 21 voted Block Producers will be the key entities who will prepare every steps and making all decision together to start the Mainnet while Block.One obviously separates its own role from Block Producer by stating that Block.One will only responsible for the development of EOS.io source code (not the Mainnet) and will only get involved if there’s any “Bug” in their source code later on. So there’s a lot of competition between Block Producer to get the vote in the beginning and they all need to find the way to work with each other (while competing for vote) to make critical decision to start the Mainnet. This is why we saw a lot of issues, delays, and prolong decision for several weeks until the Mainnet was technically launch on June 10, 2018.
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