Technology

Is EOS An Actual Crypto?

EOS is the world’s fifth most valuable cryptocurrency, according to Coinmarketcap with a market value of $11.49 billion.

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EOS

At a time when most of the major cryptocurrencies have been hit hard and have lost a lot of their market value, EOS's price has shown steady growth. EOS’ token price has grown about 44% so far this year, from $8.84 at the beginning of this year to its current price at the time of this writing of $12.77.

The challenge that this new cryptocurrency is facing is that many people are questioning whether it is actually a cryptocurrency or not. Well, here’s where we can analyze what it is to see whether there is any truth in these allegations.

What is EOS?

The first thing we need to understand what EOS is.

There is no official full form for EOS, and its creators have consciously decided not to formally define it themselves. Having said that, EOS is a Blockchain platform targeted at the development of decentralized apps (DApps). It aims to make DApp development easier by providing its users services and functions that work like an operating system.

EOS has been created to take the best of multiple smart contracts, such as Bitcoin’s security and the computing power of Ethereum’s Blockchain and combine them into a simple to use, hugely scalable platform for regular users.

What makes EOS so special?

EOS has been doing things differently from its inception. Its ICO raised funds in a manner that no other token has done so far. Instead of launching a series of rounds of funding, EOS launched a year-long fundraiser that will only end in June this year.

Another thing that makes EOS different from its parent network is the language in which the smart contracts are written. The Ethereum blockchain uses its own language which has quite a steep learning curve. EOS, on the other hand, avers that it will be able to accept smart contracts written in common programming languages.

What this means is that those interested in using the EOS network could write their smart contracts in a programming language they are comfortable with rather than having to learn a whole new programming language – makes it very user friendly.

Concerns around EOS

Despite the fact that EOS is in the 10 ten list of cryptocurrencies in terms of market value, there are concerns around its viability and success.

The first one is that EOS has launched a new ICO, but the very thing that has made it unique is what is causing investors to be concerned. A lot of confusion was caused with the launch since the token that was issued (Ethereum) to investors is not the actual token that will be used once the EOS network is launched later this year.

Another reason why people are doubting EOS’ ability to succeed is the project’s founder and CTO, Dan Larimer. He was also the founder of Steemit and Bitshares – both of which he left behind, after which they didn’t do so well. The founder’s itchy feet are causing investors a lot of concern – will EOS do as well if Larimer leaves this project once it’s up and running?

Questioning Whether EOS is Actually a Cryptocurrency

The cornerstone of a cryptocurrency is its decentralized nature; that is what makes a cryptocurrency what it is. Truly decentralized networks a huge number of nodes that are competing with each other to complete the calculations that are needed to build the blockchain and generate the cryptocurrencies.

With EOS, the developers have exactly 21 nodes that will be responsible for the network. Each of the 21 node operators have numerous back-ups, but the main group is designed to remain only 21. This makes the network statistically centralized. Which leads people to wonder whether this is actually a cryptocurrency or not.

At the end of the day, this project has its doubters, who say that EOS is completely centralized, therefore not a true cryptocurrency. But it also has its die-hard fans who believe that its unconventional nature is what will help the EOS network succeed where others have not. Supporters of EOS have called it Ethereum killer and are predicting that once the EOS network is launched, it will overtake the world’s number two Blockchain within the year.