Altcoin Spotlight: What is EOS?

There was a time when cryptocurrency enthusiasts though EOS would be the next big thing, however the token fell out of popularity shortly after. Now, almost 8 years later, EOS has broken into the top 50 cryptocurrencies once again. But should you buy it?

Whether or not you plan to invest in EOS, keep reading to learn more about this token, how it works, and what the future looks like for the blockchain.

What is EOS?

EOS is a developmental blockchain, similar to Ethereum, which was invented to allow developers a trustworthy platform to build on. When it was first launched in 2017, rumors spread that it would eventually surpass Ethereum, becoming one of the best blockchains for developers to build on.

EOS is fully decentralized and capable of hosting even the largest commercial-scale projects. With similar functionality to Ethereum, EOS can host dApps and also platform them for sale if the developers wish to do so.

For as cool as EOS sounds, it has failed to surpass Ethereum as promised. Why? Well, that is a complicated subject we will discuss more below.

How Does EOS Work?

EOS was originally built on a DPOS, or delegated proof of stake, consensus mechanism, which made it capable of processing a boastful 1 million transactions per day. Stakers are chosen using a delegated method rather than just choosing the stakers with the largest stake, like in regular POS.

EOS has its own EOS machine, though it is fully compatible with Ethereum’s Virtual Machine making it easy for developers to hop from one platform to the other. EOS tokens have a ceiling, which is at 2.1 billion tokens. It currently follows a four year halving cycle.

Those who hold EOS tokens are capable of voting on the future of the blockchain, and in 2024, they voted to move EOS to the Savanna consensus algorithm, thus increasing the security and speed of the blockchain. Supposedly, EOS can now process an impressive 1,157 transactions per second.

EOS is known for its low fees, something which was supposed to set it apart from Ethereum upon launch, but it turns out there was more to users preferring a platform than just low fees and fast processing.

Who Created EOS?

The EOS whitepaper was created by Dan Larimer, Brendan Blumer, and Brock Pierce in 2017. The ICO followed in 2018, raising an impressive $4.1 billion with the sale of 1 billion EOS tokens, but interest in the project waned soon after due to the cryptocurrency recession. Prior to his work with Block.one(the company behind EOS), Larimer was known for his involvement in both Steemit and Bitshares.

In 2021, Yves La Rose joined the project, forming the EOS Network Foundation, which helps support the EOS blockchain. Unfortunately, during this time there was much disagreement among the creators of the platform, leading to a fork, as well as several of the founders leaving the project. To our knowledge, Larimer and Blumer remain, though Pierce has departed the EOS project over a shares allocation disagreement.

Should You Buy EOS?

Although EOS was a promising project when it launched in 2017, we have had 8 years to formulate our doubts, and honestly, we don’t recommend investing.

EOS, during its ICO, was one of the biggest projects at the time. It was also one of the strongest competitors of Ethereum. But development took a long time, and ultimately suffered during the cryptocurrency recession in 2018-2020. And even though they turned a new leaf in 2021, we don’t think it’s enough.

For one, while EOS was squandering the investment money, numerous other Ethereum competitors rose to popularity and began to take over, namely Solana, Cardano, and Polkadot, all of which rest in the top 15 slots on CoinMarketCap.

While EOS had reappeared in the top 60, we think their efforts are too little, too late—though we do like that they established a token cap to make it deflationary. This small factor does give EOS a possible leg up on Ethereum and the other competitors we mentioned above, but we aren’t sure that it will truly be enough to make a difference.

This doesn’t mean EOS is a bad project. As far as transparency goes, we think this is one of the few projects that we trust isn’t a scam or a rug-pull, as they are still around eight years after launch. We just don’t think you will gain any sort of massive return when investing in EOS, the market is simply too oversaturated by similar projects.

This could change in the future, however, so EOS is definitely a token to keep an eye on and to have on your radar for possible future purchases, especially if they continue to evolve in ways that Ethereum can’t. Plus, if you are a dApp developer, EOS isn’t the worst platform to use for development, considering it is EVM-compatible.

Of course, we are not financial advisors, and it is ultimately up to you whether you decide to invest or EOS or not. Just be sure you only invest money that you are okay with losing entirely.

Where You Can Buy EOS

Unlike some of the other projects we feature in our altcoin spotlights, EOS has been around for a while and is thus available on most major CEFI and DEFI exchanges. Below is a shortlist (but not complete list) of where you can purchase EOS tokens:

·      Binance

·      Coinbase

·      Kraken

·      Bithumb

·      Upbit

·      KuCoin

Currently, there are over 100 exchanges that sell EOS, so if you don’t see your preferred exchange here, don’t fret; just search for EOS there.

Overall, while EOS isn’t a bad project, we aren’t sure it has what it takes to truly take down Ethereum. With momentum that has been slowing rather than speeding up, we aren’t sure whether EOS will ever be worthy of an investment, but of course, your financial choices are yours alone. If you are an app developer, EOS might be the right choice for you.