What Is EOS Crypto and How Does It Work?
According to CoinMarketCap, EOS cryptocurrency is the EOS completed its year-long token auction on June 1, according to Cointelegraph, raising a record-breaking $4 billion.
The currency's presence on exchange platforms necessitates extensive research into the currency's technical characteristics, buying and selling methods, and storage capacity in order to fully benefit from it.
To begin, let's learn about its developer, the EOS platform, and its ambitions and features.
What Is EOS Technology and How Does It Work?
EOS (Ether Over Sonnet) is a blockchain-based platform that was developed to assist developers in creating decentralised programmes, or DApps.
EOS delivers easy, comfortable conditions with an operating system-like collection of services and capabilities. It combines the best aspects of modern technology and promises scalable, adaptable features in order to create a complete operating system for decentralised applications.
Every day, the number of DApps grows, putting a ceiling on the amount of resources available on the network. Here are several examples:
the large amount of erroneous transactions and requests
Spam-containing applications
implementation takes a long time
Within the network, there is a shortage of computational power.
In contrast to other platforms, EOS provides a scalable and flexible method of solving these issues. For example, Ethereum uses the Rental Model, which requires gas costs in return for every calculation, storage activity, and bandwidth usage. Transaction fees are uncertain and subject to change as market conditions change. Their owners have the option of choosing the transactions with the highest costs.
The lack of fees is a major benefit of EOS technology. It has a low latency, allowing transactions to scale to thousands per second.
EOS was created by Block.one, which is directed by Dan Larimer (co-founder of Bitshares and Steemit) and Brendan Bloomer, both of whom have extensive expertise running crypto projects.
Authentication
The EOS system allows for full-featured authentication, which allows for the sharing of database access between accounts as well as the storage of data off the blockchain on a local PC.
Furthermore, there are a number of ways for recovering a stolen account, including proving one's identity and restoring all data.
Keeping everything in the cloud
Other benefits of the EOS network that application developers can take use of include server hosting and cloud storage. This will allow them to deploy the programme despite the challenges of procuring storage and bandwidth.
EOS's direct access to storage and bandwidth analytics reveals each application's constraints. Staking EOS tokens can be used to pay for these services.
Companies can establish their own charges for services based on their monetization strategy because developers calculate transaction fees separately.
Formation of Blocks
Every three seconds, developers construct a new block. Their number is limited by the network, which only enables them to produce blocks in batches of 21.
The EOS economy
The EOS economy isn't built around mining. Block developers are required to build a certain amount of blocks. For each new token they make, they are rewarded. The amount of tokens created is determined by the median value of the expected remuneration set by all block makers. According to the EOS white paper, the overall annual growth in token supply will not exceed 5% in order to avoid a purposeful price increase. Token holders may potentially influence the market price of a corporation by voting out block developers who set higher pricing.
Additionally, token holders should keep in mind that the value of their EOS tokens in storage will depreciate at the rate of inflation, as they pay for file storage based on a percentage of annual inflation.
As a result, the more storage needed, the more tokens should be issued, and the price should be as high as the developers can ask for. If there is less demand for storage, though, inflation will be reduced as well, and EOS tokens will lose less value.
The EOS Token
As with any decentralised operating system, the EOS network allows developers to create applications inside an ecosystem governed by the EOS coin. After the ICO, the EOS token was converted to EOS coins and issued on the Ethereum platform.
A developer who wants to create an EOS blockchain-based application must have some EOS tokens in order to meet the network's expectations and gain access to the EOS blockchain. The tokens are simple to use and may be simply traded for other cryptocurrencies.
To acquire access to the tools and resources needed to construct an application on the EOS blockchain, you must first purchase server time using EOS tokens, then advertise the capacity of elements such as disc space, CPU, time, and RAM. To operate a specific application, EOS token holders must use Proof of Work (POW) or Proof of Stake (POS) methods to vote for it on the platform.
Where can I get the EOS Coin?
Participants in the token sale have two options for purchasing EOS tokens:
Making Use of Fiat Money
If you are a beginner with no major trading expertise, it is recommended that you utilise this technique to buy EOS tokens with USD or any other fiat money.
Buying EOS tokens: Here are some helpful hints:
Step 1: Open an account on a cryptocurrency exchange that accepts fiat currency.
Although EOS tokens are listed on a large number of exchanges, not all of them accept fiat cash. As a result, studying all of the intricacies of participation and the options that exchanges offer their consumers is essential before deciding on the best one.
Consider Gemini, GDAX, and Coinbase, which are all popular possibilities in this instance.
Then give the following information:
your given name
your electronic mail address
your contact information
identification proof
evidence of residency
a personal photograph of you holding a signed declaration
Make sure your account has two-factor authentication enabled.
Step 2: Funds must be deposited into a personal account.
Log into your account and click the “Deposit USD” link on the account screen once you have successfully confirmed your personal identity and submitted your details. Then select whether you want to make a deposit using a debit or credit card.
Step 3: Purchase EOS.
After the money have been transferred to your account, go to the "Buy/Sell" page and choose "EOS" from the list of available currencies.
Then select "Buy EOS" and enter the amount of EOS or USD you want to spend.
Check the transaction's details carefully before submitting it to ensure that all information is valid.
2. Investing in a Different Cryptocurrency
The first step is to select an EOS wallet.
To begin, you must first select a working digital wallet in which to store your tokens. Customers must hunt for third-party wallets because the EOS network does not supply official EOS wallets.
Because EOS is based on the ERC20 token standard, the wallet should be as well. Because this is the most widely used standard for creating tokens, it is compatible with most major wallets.
Token walletsToday, there are a plethora of wallets from which to choose. Let's look at the different types to see which one is ideal for your needs:
Wallets for the Desktop
For EOS storage, most people prefer wallets like Jaxx and Exodus, which can be used on Windows, Mac, and Linux. Jaxx wallets are available for Android and iOS smartphones, as well as Chrome browser extensions. Furthermore, Jaxx is ideal for novices because it is both comfy and simple to use. Its users have the option of recovering their wallet via a 12-word master seed.
These desktop wallets also have ShapeShift capability, allowing them to trade ERC20 tokens if they exist.
Exodus is another desktop wallet worth mentioning. Its greatest advantage is that it is accessible to everyone, with a live chat option that enables for quick storage value checks.
Wallets on the Internet
Web wallets are the greatest since they allow users to keep their tokens on a computer, as opposed to simply being able to do so online.
One of the most popular and reliable wallets is MyEtherWallet, an open-source wallet. This is due to the fact that users can save their private keys on their laptops, allowing them to keep their data and information safe.
Wallets for mobile phones
People can now use their mobile phones to gain rapid access to their EOS holdings. Users only need to utilise a wallet that is compatible with their operating system. The Jaxx wallet is the greatest option because it works on both iOS and Android smartphones.
Hardware wallets
Hardware wallets enable specific cold storage for tokens, ensuring their complete security. Trezor, for example, has numerous levels of protection, allowing it to operate on a zero-trust basis. With a four-digit pin code, it protects people from fraud. You can also use a special 24-word seed to restore access to the wallet if you forget your pin code. The wallet's security is bolstered by an encrypted passphrase and a wipe password.
One of the biggest drawbacks of the Trezor wallet is that it is one of the most costly EOS wallets. Anyone who wants to use all of its services must spend $104 to do so.
What Should Holders Consider When Choosing an EOS Wallet Security
We live in a world where fraud and hacker traps are set up to defraud and steal token holders' funds. As a result, while choosing an EOS wallet, the most critical factor to consider is security.
First and foremost, familiarise yourself with a wallet's security features to ensure that your own tokens are kept safe. Any wallet that offers two-factor authentication and superior encryption should be taken into consideration right away.
Keys that are kept private
Private keys are used to conduct the process of sending and receiving tokens in truly reliable wallets.
Continued Improvement
The cryptocurrency market is evolving rapidly, but hackers are honing their skills on a daily basis in order to carry out their scams and steal the most profitable wallets. To avoid this, wallet developers must constantly find new ways to assist consumers in safeguarding their wallets.
Reviews
The best method to determine the true value of a wallet is to conduct your own study. Before you start using a wallet, pay attention to what others have to say about its security, general weaknesses, customer service, and development team. Pay close attention to the specifics, and learn about previous incidents that have occurred, since they may occur to you as well.
Step 2: Open an account with a bitcoin exchange.
Consider a list of cryptocurrency exchanges for buying and selling different digital currencies after you've set up a digital wallet.
EOS tokens are available on major exchanges because it is the fifth most popular cryptocurrency after Bitcoin, Ethereum, Ripple, and Bitcoin Cash.
Here are the most well-known:
Binance is one of the most well-known and well-known cryptocurrency exchanges, and it supports a variety of cryptocurrencies. Fiat money, on the other hand, is not accepted.
Kraken is regarded as one of the finest exchanges for storing EOS tokens since it provides users with additional freedom by accepting a variety of payment methods, including fiat currencies like as USD, EUR, and GBP. It's also worth noting that Kraken has a minimal transaction cost structure.
ShapeShift does not need registration or the provision of any personal information. Users can keep EOS tokens anonymously in this method, but it comes at a cost: hefty transaction fees.
Bitfinex allows users to buy EOS with US dollars, which is one of the exchange's most uncommon trading pairs. On the other hand, it is currently seen as a contentious trading platform as a result of a massive hack in 2016 that resulted in a user loss of over $70 million.
Step 3: Withdraw EOS Tokens to a Wallet
After purchasing a particular quantity of EOS tokens on a crypto exchange, it is recommended that you do not keep them there because they may be hacked. Transferring funds to a crypto wallet ensures security and protects you from identity theft.
If you're thinking of buying EOS, consider the following factors:
Supply. According to CoinMarketCap, the circulating supply of EOS was 896,149,492 in July 2018. Block.one has received 10% of the total quantity of 1 billion EOS tokens, which was the maximum supply.
Competition. NEO, Cardano, Qtum, and other blockchain-based coins are all vying for market share, and EOS is no exception. Don't overlook the potential offered by other ventures.
White Paper. Read the EOS technical white paper to learn about all of the scenarios that buyers and sellers might face.
Sale of Tokens
According to data given by EOS Collective, the EOS token sale was one-of-a-kind, lasting a full year and 350 distribution periods, beginning on June 26, 2017. People had enough time to learn about the aspects of the token sale and make their own predictions about the likely outcomes with this form of distribution. As a result, they were able to have a thorough understanding of the token sale process and, as a result, execute a profitable deal.
All contributors were granted their stake in the total amount of allocated tokens at the end of each period. The token sale was notable for raising a lot of money and increasing the value of the tokens, and it continues to bring in a lot of money for the participants. From the beginning of 2018, we can see how token value has increased:
The goal of the EOS token distribution was to spread tokens across the whole ecosystem at market rates. As seen in the chart below, all participants were required to follow the same conditions in order to participate in the distribution process, and were given equal opportunities to sell and buy during the ICO period:
From June 26, 2016, until July 1, 2017, 200 million tokens (20%) were given.
Currently, 700 million tokens (70 percent) are being sold at a rate of 2 million each day for 350 days.
To assure the procurement of 10 million tokens per year, 100 million tokens (10%) are maintained at Block.one.
EOS tokens were listed on most exchanges, which meant that the price of the tokens was established by the market. Anyone who wanted to purchase or sell tokens might participate in the token sale. Holders and investors could store EOS tokens in Ethereum Wallet, MyEtherWallet, and MetaMask and trade them on exchanges like Bitfinex and YoBit.
Summary
To summarise, EOS is a contentious project. However, the fact that it is one of the most popular coins today, with tokens listed on major exchanges, makes it an obvious choice for anyone considering starting a cryptocurrency. The potential of EOS blockchain-based technology appears to be enormous, as it addresses issues that have previously plagued blockchain-based networks.
Nobody knows what will happen in te next several years, but the project's $4 billion budget should be sufficient to meet its objectives and provide new chances for its supporters.