EOS

bitEOS is a smart contracts platform. It is the brainchild of Dan Larimer, the founder of both Bitshares and Steemit (two of the larger projects in the crypto ecosystem). The main value of the project is dealing with the scalability issue surrounding smart contracts. As mentioned in the introduction to this space, Ethereum’s primary limitation is scaling (see crypto kitties). This has created a fierce race to determine who the primary smart contracts platform will be. The stakes are high. Whomever wins stands to have a significant portion of the world building their businesses on top of their blockchain. EOS is approaching this problem by creating a system they are claiming can process a functionally unlimited amount of transactions per second. This has led to a significant amount of investment in the project. Establishing a network as such could be tremendously lucrative and they know it. To that end, they set up a year long ICO structure where new tokens were released everyday. The price of their token will be determined by the demand for the new tokens released everyday as well as demand on exchanges. Thus far, the project has raised $5B without releasing a product.

EOS uses a delegated proof of stake mechanism for validating transactions (see introduction). The software also allows for the scheduling of applications across hundreds of CPU cores or clusters to enable the vertical and horizontal scaling of their platform. A good way to think about scaling is as follows: Vertical scaling relates to the capacity to store data, and horizontal scaling has to do with the capacity to increase the number of customers a system can handle. Traditionally, horizontal scaling meant that you scale by adding more machines into your pool of resources whereas vertical scaling means that you scale by adding more power (CPU, RAM) to an existing machine. Being able to synchronize applications across hundreds of CPU cores or clusters is an advantage for blockchain based systems.

EOS has an experienced team. Dan Larimer is likely the most influential face in the crypto space other than Vitalik Buterin. He is one of the top players in the crypto ecosystem and more than capable of getting EOS as much recognition as needed. This means the company won’t suffer to generate a network effect if their product is valuable. Moreover, their speculative value is one of the highest in the industry. For this reason, I consider EOS one of the best investments in crypto. I personally hold a fair amount in my portfolio and look forward to it’s appreciation over the upcoming months.


One thought on “EOS

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s