The declared EOS goal: the creation of “decentralized autonomous communities”

The Bitfinex cryptocurrency exchange concluded the partnership agreement with the EOS project, intending to create the first decentral exchange EOSfinex. Making the official statement for the partnership agreement, the head of Bitfinex — Jean-Louis van der Velde called EOS “the changing technology”.

It is possible to tell that such agreement — EOS vote of confidence, to the platform allowing users to start decentral applications. In this quality, it costs in the same row with Ethereum, Lisk and NEO in the market where the competition is extremely then So than the EOS platform is unique?

About EOS

The platform was created by the company with the Cayman Islands — Block.one. The head of EOS is Brendan Blumer — the “serial” founder; then five venture projects based by it figure in its profile of LinkedIn at least, and he created the first at the age of 15 years. At the beginning of a month, it was switched on by the Forbes log in the list of cryptocurrency rich men which estimated its fortune in $600-700 million.

The purpose stated to EOS — development of a blockchain in commercial scale by means of creation of “decentral independent communities”. It is supposed that the software of EOS will support the distributed applications working at fundamentals of blockchain technology just as network applications function.

Technical documentation

The company directly states that tokens of EOS have no real relation to the software. In the agreement on purchase which investors shall sign it is specified that tokens “have no rights, use, the purpose, assignment, the functional capabilities or functions”. Besides, the company does not allow to purchase of tokens of investors from China and that is very strange, the USA.

It is simple to guess that it is probably the trick for the avoidance of possible pressure from the American SEC, but it is perceived very ambiguously. In case of this EOS stably keeps in the top ten on Coinmarketcap proceeding from what it is possible to assume what such announcements do not cause concern in the audience at all. The document also explains that the system will exclude the commissions, will support millions of transactions per second and will make the start of decentral applications fast and easy.

The blockchain will begin to support both “sequential”, and “parallel” implementation of processes: the first belongs to applications which progress stepwise, and the second means that the operational load is shared between nodes. It can be implied by the words “horizontal” and “vertical”. The software of EOS will be, first and first of all, the platform for coordination of transmission of authentic messages to accounts.

Thus, it is the key characteristic of a new blockchain. The blockchain of EOS will begin to support “any language or the virtual computer having the determined character and properly isolated that will allow providing an adequate operating mode”. It will give the chance to communication between blockchains. Respectively, the purpose of EOS is somewhat similar to NEO token purposes.

Consensus algorithm

As the blockchain of EOS does not use the principle of Proof-of-Work as at bitcoin, it avoids traps in the form of centralization power of mining and forks. The consensus mechanism is known as a reaching consensus algorithm in the decentral environment (delegated Proof-of-Stake) is the basis for the operation of the platform. This system is based on the proof of a share of possession (Proof-of-Stake) and also contains a voting element: units will be created by delegates by means of “permanently operating system of approving vote”. New delegates will be elected after the creation of 21 units.

It is remarkable that one unit will be created every three seconds, and every time only one delegate will be authorized it to do. If he is not able to create the unit, then the unit is passed — “when one unit or is passed more, then in a blockchain there is “window” lasting six or more seconds”. If the delegate stays idle within 24 hours, he is eliminated from system to ensure its smooth operation.

One of the advantages of this system, as well as the dBFT model (Delegated Byzantine Fault Tolerance) at NEO, is the fact that vendors of units cooperate rather than compete, reducing thereby probability of forks. Unlike dBFT, forks can happen, but the system offers several checks with the purpose to warn users that they are in the minority unit and they have no incentives to further work.

One more likeness to dBFT and NEO consists that decisions on changes of the system are made by most of the vendors of the unit, and approval shall remain within the next month smoothly.

Unique system of sale of tokens

EOS still is at a stage of the sale of tokens. The uniqueness of a case consists that sales started still a year ago. As a rule, ICO campaigns last at most several months, and at times — much less. For example, the Bancor project which concluded with EOS the partnership agreement in June 2017 collected during ICO $153 million literally in several minutes.

The big duration of a campaign for the attraction of financial resources is designed to interfere with the origin of the unhealthy agiotage which is often accompanying ICO.

“We considered that the campaign for distribution of tokens lasting a year is the best method to guarantee to users obtaining the objective market value of tokens of EOS. We expect that for this year the active interest will be retained as the community continues to learn about the software of EOS and about those benefits which are a software can bring to participants of the market” — the head of EOS Brendan Blumer says.

ICO began in June 2017, for the first five days $185 million were collected. Other interesting feature of a campaign consists that tokens are on sale during the periods 23 hours. According to the official site, it is collected 5206 ETH now that nearly $5 million in today’s prices equal. According to the website, by a present situation, 778 million from 1 billion tokens are acquired.

The price of tokens is defined by market demand and is not fixed. According to the website, the new technology “copies mining model, without giving at the same time potential opportunities to make unfair large purchases”. Tokens are distributed at the end of every period according to ETH volume provided by buyers.

Inference

EOS has every chance to occupy the niche: Ethereum NEO — “the world economy” whereas EOS intends to scale decentral applications to commercial scale aims to become “the world computer”. The exchange launched in cooperation with Bitfinex — the first example such.

Bitfinex — at the moment the largest cryptocurrency exchange on the trading volume in a pattern, therefore, the partnership with it can serve as an incentive for EOS and its admirers.

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