Why EOS Blockchain is one of the best Blockchain Platforms?
EOS or EOSIO, launched in July 2017, is among the top 5 blockchain platforms today. Indeed, it is a rare feat considering that the platform has been in existence only for a few years, compared to established players such as Ethereum.
What makes EOS so unique? Why are blockchain enthusiasts jumping into the bandwagon of EOS-based dApps?
We’ll get the answers to these questions in a bit, but let’s first understand what is EOS blockchain.
What is EOS? The Complete Guide to understanding EOS Blockchain
What is EOS? EOS is a blockchain platform that enables the development, hosting and execution of decentralized…
EOSIO, or EOS in short, is a blockchain platform that supports the development of industrial-scale dApps or decentralized applications. According to the originators of the platform, EOS aims to provide a user-friendly and business-friendly infrastructure to build dApps, while bypassing some of the significant challenges which have stifled the proliferation of blockchain in the mainstream.
Traditionally, blockchain applications have drawn flak because of their limited potential for scalability.
For example, consider any Ethereum-based apps. The rate of transactions is currently so low that you would not want to extend it for mass consumption, which demands several hundred to thousands of transactions per second. Furthermore, users have to pay the Gas fees for any transaction initiated on such a dApp. With low scalability and increased transaction cost, businesses have come to perceive blockchain as a counterproductive technology.
EOS entered into the scene at an exciting stage and with an irresistible value proposition. The platform supports both vertical and horizontal scaling to make applications free for users. Also, it provides a secure and scalable infrastructure to execute thousands of transactions each second. Business enterprises can leverage the EOS blockchain platform for several services, including setting up smart contracts, building dApps for cloud, developing user authentication systems and so on.
In fact, the complete removal of transaction fees and the ability to execute millions of transactions per second are two of the biggest selling points of the EOS blockchain platform.
Highlights of the EOS Blockchain Platform
The underlying platform capabilities are largely responsible for the success or failure of a dApp among the mainstream audience. With EOS, the possibilities of success are higher, while the risks of failure are significantly lower. Let’s see why it is so.
In general, all successful dApps should have some or all of the following attributes:
Perform Optimally with a Large User Base
A dApp platform needs to be scalable enough to support millions of users to use it seamlessly and simultaneously, without facing any noticeable performance lag.
- Zero Transaction Cost
Users should not incur any form of transaction cost when initiating or completing a transaction on a dApp.
- Low Latency
The underlying blockchain platform must ensure that the dApp runs with the lowest possible latency. The lower the latency, the better the user experience.
- Parallel and Sequential Performance
A dApp needs to support parallel processing to ensure the distribution of the workload, saving time. It should also allow for multiple sequential performances to ensure error-free transactions.
So, what is new with EOS? Let’s explore the following section to find the answer to this question.
Scalability, in terms of blockchain, refers to the number of transactions executed per second. Until the emergence of EOS, this has been a major bottleneck for blockchain platforms. The root of this problem lies in the nature of blockchain transactions which require every node in the network to arrive at a consensus for any transaction to be completed.
How does this impact a normal user? Let’s look at an example from Visa and Paypal. Visa handles between 1600 and 1700 transactions per second while Paypal manages 193 transactions. In contrast, in the blockchain world, Bitcoin only manages 3 to 4 transactions per second, whereas Ethereum is marginally better placed with 20 transactions per second.
In sharp contrast, EOS, while being a blockchain platform, can support millions of transactions per second owing to its revolutionary distributed proof of stake (DPOS) mechanism.
- Parallel Processing
The EOS platform supports the parallel processing of smart contracts deployed on the network using the following three levers:
- Horizontal scalability: This refers to the ability to increase the transaction rate by increasing the number of systems and computers in the network.
- Asynchronous communication: All the parties involved need not be available at the same time to communicate.
- Interoperability: This refers to the ability of a computer system to exchange as well as utilize information meaningfully.
- Decentralized Operating System
Unlike other blockchain platforms that call themselves as a decentralized supercomputer, EOS has positioned itself as a decentralized operating system. This itself allows the platform to bring a wide range of features to its users, similar to most computer operating systems.
- Limited Energy Consumption
EOS consumes less energy than its peers because consensus can be arrived at with its unique delegated proof stake method.
- Flexibility and Permissions
EOS provides a secure platform that is safe from attacks and sabotage by cybercriminals. The DPOS mechanism ensures that the large chain remains secured in the event of dApp faults or attacks. This is achieved by having the elected block producers freeze the dApp until the system is restored.
The platform also offers a comprehensive permission management system for creating custom permission and authority schemes for different types of business situations.
All dApps launched on the EOS platform can be upgraded through the implementation of code fix and addition/change of features, or by changing the application logic.
In EOS, the governance structure is maintained by establishing jurisdiction and choice of law, coupled with mutually accepted rules. This is made possible by its constitution. Each transaction in EOS requires the hash of the constitution attached to the signature.
Technical Aspects of EOS
A basic awareness of the technical aspects of EOS is always beneficial whether you’re one of those who are eager to experiment with your first EOS development or among the more conservative ones who would like to dive deeper before making a decision. The EOS or EOSIO platform uses C++ as the programming language for its smart contracts. C++ being one of the most popular programming languages worldwide, the adoption of EOS becomes significantly easier. Anyone familiar with C++ can readily develop EOS smart contracts after getting up to speed with the EOS API.
Besides, a WebAssembly (WASM) virtual machine is used to execute smart contract code in EOS — a concept that is already established, thanks to the likes of Google, Microsoft, and Apple. This provides EOS with the advantage and ability to leverage existing compilers and toolchains with a proven performance record.
Cost to Build dApps on EOS
If you’re already toying with the idea of an EOS-based dApp, you must be wondering about the financial aspects of EOS development. This section should put your anxiety at rest. Three primary factors play a crucial role in determining the cost of developing a dApp on EOS — resource types, resource usage, and resource allocation. Let’s have a close look at these three factors.
dApp accounts consume three types of resources:
- RAM — State Storage
- Network — Bandwidth and Log Storage
- CPU — Computation and Computational Backlog
- RAM: Similar to most computer operating systems, state storage in blockchain refers to the information such as order books and account balances or any other data that can be accessed from application logic.
- Network Bandwidth: This is the average consumption in bytes over the preceding three days.
- CPU Bandwidth: This is the average consumption in microseconds over the preceding 3 days.
Both network and CPU bandwidths are temporarily consumed every time a user sends an action or transaction.
- Network, CPU — Staking: The network and CPU bandwidth are allocated based on the number of tokens held in a 3-day staking contract. With time, the consumed network and CPU bandwidth free up automatically and one can reuse the staked tokens.
- RAM: RAM needs to be procured at the market rate, which follows the Bancor Algorithm, based on the Bancor Protocol.
In contrast to network and CPU bandwidth which becomes free with the passage of time, RAM becomes available only when data is deleted from the account state. One can resell the available RAM at the market price.
EOS dApp Use Cases
Ever since its launch, the blockchain community has positively accepted EOS development and a large number of applications have been developed and launched on the platform. We’ll look at some of these use cases to give you an idea of the range of possibilities.
- Gaming: An Italian augmented-reality-based video game named Hidden Fighters has been developed on EOS, which allows players to compete with unique avatars while winning tokens by selling their equipment and completing game missions.
- Green Energy: The Ubuntu Energy Ledger, a clean energy marketplace set on the EOS infrastructure, is on a mission to provide cost-effective renewable energy to Africa and equip 4 billion households by 2030. The community relies on microloans and investors to help fund small businesses and people’s homes.
- Finance: All_ebt Food Stamps: is a virtual card built on the EOS blockchain platform, which aims to help low-income communities in Puerto Rico participate in the digital economy and have access to healthy food. Around 45% of the population in Puerto Rico sustain on Food Stamps (22% in the U.S.) and this has been a significant push to help them with financial inclusion.
- Governance: The Free Republic of Liberland is a sovereign nation founded on 13th April 2015, which aims to develop an open source government that will significantly increase the bounds of freedom for its citizens, by building a Decentralized Autonomous Government (DAG) on the EOS blockchain.
EOS leads the way not only in terms of building business-apps or entertainment-apps but also for a wide range of concept apps aimed to set the world and underprivileged communities on the path of social and economic inclusion. In addition to applications that support ride-hailing, music-sharing, fitness-tracking, digital payment, we have seen applications that promote green and sustainable energy, better governance mechanisms and financial support for the economically weaker sections. In just a few years of its launch, EOS has emerged as the safer, faster and more affordable alternative to traditional blockchain platforms. Looking at these trends, one can only give two thumbs up to EOS as the real flagbearer of blockchain technology.