Scalability and higher gas fees are the two leading components that are affecting the mass adoption of the blockchain industry. Ethereum is a leading player that enables users to build decentralized applications on its platform. The problem is that it takes a lot of time to process the transactions.
Furthermore, the users need to pay a high amount for accessing different services.
What is EOSIO (EOS)?
EOSIO, an Electro-optical system, is a blockchain-based network that’s not just recognized as “Ethereum Killer” but also gives a tough time to new entrants like Tron and NEO.
EOSIO is focused on serving the businesses that are willing to take advantage of the blockchain industry without worrying about low speed and high gas fees. The developers can build different types of applications like EOS smart contracts, user authentication, cloud storage dApps, and other applications on the EOSIO network.
The best part is that they don’t need to learn a new language to build an application as they can use traditional programming languages like Python, Java, and C++ for developing dApps.
EOSIO Brief History
EOSIO was launched by a private company, Block.One. Brendan Blumer and Dan Larimer are the two prominent names who developed this project. Dan also has the credit for developing other crypto networks like Steemit, the first blockchain-based social media network, and BitShares, the first decentralized exchange.
Dan also played a vital role in the creation of the DPoS (Delegated Proof-of-Stake) consensus protocol that is used for verifying transactions within the network. The white paper of the project was introduced in May 2017 and the ICO was officially launched in June 2017. Surprisingly, the investors invested around $185 million during the first five days of the ICO.
Unlike other crypto projects, this ICO continued for around 341 days and the project was officially launched in June 2018.
How Does EOSIO Work?
EOSIO network is designed to facilitate the individuals and businesses that are willing to build fast and cost-effective decentralized applications. The overall infrastructure consists of three major components.
- EOS Blockchain – It’s the main component of the EOSIO network that hosts decentralized applications with the help of Delegated Proof-of-Stake (DPoS) consensus protocol.
- EOS.IO – It’s an operating system like Windows and MAC that enables developers to build decentralized applications on the blockchain network. It consists of a number of advanced development tools that simplify the dApp development process.
- EOS Token – EOS is the native token of this blockchain network that is used for certain economic activities such as transfer of value, on-chain governance, and staking.
EOSIO offers 12 times faster transaction speeds with its EOS VM WASM (web assembly) engine. It also eliminates the frustrating delays by storing data in the form of multi-index tables.
EOSIO uses a refined form of Proof-of-Stake consensus protocol to provide faster speed. In a traditional Proof-of-Stake consensus protocol, the validators stake a specific amount of crypto tokens to help with the block creation process. They may lose their staked tokens for validating a false transaction.
EOS uses a different approach where only 21 participants are responsible for the validation process. These validators are chosen through the voting process. Thus, it engages more participants in the process. Users can delegate their coins to different participants to choose the top validators.
84 participants are kept on standby so they may help with the block creation if any of the 21 validators are involved in malicious activity. Similarly, these 84 users can help with smooth processing if there’s a machine failure from a delegator’s side.
These 84 users use the Asynchronous Byzantine Fault Tolerance (ABFT) algorithm for verification. EOSIO is designed on the pattern of the traditional Web 2.0 world. It means the developers don’t need to pay a transaction fee whenever they perform an action within the network.
They just need to pay for the resources they’re going to use for their application. For example, the developers pay for the domain, servers, and network bandwidth in the web 2.0 world. Similarly, they need to stake a specific amount of EOS tokens for accessing different resources of the platform.
EOSIO offers three different resources for developers.
- Bandwidth (Net) – It helps with transferring data across the network.
- Computation (CPU) – The amount of power required for transaction processing and running several other operations on the dapps.
- State Storage (RAM) – It’s used to store data produced by smart contracts.
The EOS token holders can change the software’s rules through the voting process. All EOS token holders can participate in the voting process. The 21 validators are responsible for carrying out the decisions once the majority has voted for a particular decision.
The validators also have extensive powers to take certain decisions within the network. For example, validators are allowed to freeze accounts if 15 out of 21 validators are in the favor of the decision.
It raises some serious concerns because validators may use their powers to take control of the entire network.
EOSIO vs Ethereum
Ethereum can process only 12-15 transactions per second while the EOSIO can process around 10,000 transactions per second. Ethereum charges a very high gas fee for the transaction process while EOSIO doesn’t have any such fee. It enables users to operate different decentralized applications free of cost.
Ethereum consumes a lot of energy because it uses a Proof-of-Stake consensus protocol whereas EOSIO uses Delegated Proof-of-Stake consensus protocol.
EOSIO is dedicated to serving the individuals and businesses that want to build decentralized applications without worrying about speed and transaction fees. It provides faster transaction speeds with its delegated proof-of-stake consensus protocol. Furthermore, it only charges for the resources the developers use to run decentralized applications.
If you need more information about how EOSIO works, feel free to get in touch with us.