1. What is EOS?
EOS is a blockchain platform designed to create decentralized applications (DAPPs) of any scale. Fans call it the Ethereum killer for its similar functionality with greater scalability, zero transaction fees, and original onchain management model.
2. Why is there so much hype around EOS?
EOS owns the record for ICO fees – more than $4 billion. The platform’s tokenization lasted almost a year – from June 26, 2017 to June 1, 2018.
High expectations are due to the previous successful projects of the platform’s main developer Dan Larimer and the platform’s claimed revolutionary scalability. Already at the development stage, the EOS blockchain was used by major industry projects such as Bitfinex, Bancor, and Everipedia.
Meanwhile, the EOS token quadrupled in value before the mainnet launch.
3. Who created EOS?
Block.one is the creator of EOS. The platform’s co-founder is industry veteran and blockchain visionary Dan Larimer (co-founder of Bitshares and Steemit). The platform’s code is freely available on Github. Members of the community are free to send pull requests (suggestions for code changes), but Block.one has the final say.
There are third-party developers who create related products: wallets, voting tools, and plugins. Often the block validators themselves on the EOS network (block producers) do this.
4. What are the goals of EOS?
EOS developers are combining existing blockchain solutions and proprietary technology to create a functional DApps platform.
“We are building a blockchain architecture that is potentially scalable to millions of transactions per second, commission-free, with fast and easy implementation of decentralized applications,” notes the EOS team in the project FAQ.
5. What makes EOS different from other blockchain platforms?
No transaction fees or “gas.” EOS can be used for free;
in the whitepaper the developers state that EOS will be able to process millions of transactions per second. By comparison, Ethereum’s bandwidth is up to 30 transactions;
EOS uses the original DPoS (Delegated Proof-of-Stake) consensus algorithm. DPoS is praised for its scalability and low power consumption, but criticized for its complicated management structure and the danger of centralization;
The platform does not require knowledge of unique programming languages – decentralized applications can be created in C++;
network management model – a complex structure with rules of the game prescribed in the Constitution. Relationships between participants are governed by smart contracts, and disputes are resolved by a special arbitration body EOS Core Arbitration Forum (ECAF).
6. What is DPoS and how does it differ from PoS?
DPoS (Delegated Proof-of-Stake) is a consensus algorithm first developed by Dan Larimer in 2013 for his BitShares project. This protocol is also called a form of “digital democracy.
The difference between DPoS and PoS is the division of network participants into block producers and voters. In other words – not all EOS coin holders can directly participate in the creation of blocks. In order to become a validator, a network participant must meet two conditions:
Possess sufficient technical capacity to keep the node running smoothly 24/7.
Maintain an impeccable reputation and spend resources to build a community and get the necessary user votes.
If in PoS the chance to become a block validator depends on the number of blocked coins in the wallet, in DPoS this role is performed by votes cast for the block producer by network participants.
Unlike PoS, the coins used in voting are not blocked in the wallet, but can be freely used. This will reduce the weight of the voter in the next vote. Another difference is that there is no mandatory minimum amount of coins to vote.
7. What is the consensus process in DPoS?
The blockchain creation process in DPoS blockchains is divided into rounds. Each round has the following structure:
Coin holders vote for block producers.
The block producers with the most votes go into a pool from which validators are selected for the next round of block creation. There are 21 block producers in each round, each creating 12 blocks.
The validators approve the 252 blocks created during the round, and the process repeats.
8. How does DPoS work in EOS?
There are 21 validators involved in the creation of each new EOS block. But there are considerably more willing to take the place.
Block producers are chosen by network members, with the weight of each vote depending on the amount of the voter’s assets. From the pool of validators with the most votes, a queue is formed from which validators are chosen for the next round of block creation.
A vote can be transferred to another validator at any time. It is also possible to vote for multiple block producers at the same time, and votes will have equal validity. The loss of user votes removes the validator from the game. This political structure forces validators to refrain from abuse and, by Larimer’s design, should make collusion and over-centralization impossible.
9. How do you choose and vote for a block producer?
The competition of block producers within the network is reminiscent of the political struggle of parties in an electronic democracy. Unlike PoW blockchains, where the political weight depends on computing power, EOS validators need to expand and develop the community around the project to increase their own political weight with increasing competition.
Validators are traditionally anchored in the regions as leading local blockproducers, reducing the likelihood of a repeat of the centralized mining situation into which bitcoin has fallen. The largest block producer in Eastern Europe is Attic Lab.
In order to exercise your right to vote, you need to download a voting tool from the website of a block producer you trust.