EOS is aiming to become a decentralized operating system that can support industrial-scale decentralized applications.
That sounds pretty amazing knowing what we know about the scalability of public blockchains.
EOS claims that they’ll have the ability to conduct millions of transactions per second all without transaction fees. So how could they possibly offer this? They claimed to have solved the biggest problem in the blockchain space scalability in comparison to traditional payment channels.
Visa manages 1667 transactions per second while Bitcoin managers about seven. As for second the reason for this is that public blockchains, like Bitcoin currently require total consensus across notes. The office is solution to this is called delegated proof of steak or dpos to understand the following. You should probably have a good grasp on regular proof state check out our video at this annotation. If you need a refresher in typical proof of stake algorithms a block producer is chosen from a pool of stagers based on various selection algorithms that typically take into account the amount of token State or the amount of time the tokens have in state in the dpos system the block users are chosen instead by a vote.
Anyone that holds me US tokens can vote on who the block producer should be for each block 21 blocks are produced in each round of voting 20 or made by the top 20 producers voted for and the 21st is made by a random selection based on the number of votes other producers have received. So if there are two producers remaining after the top 20 or selected they each have a chance to produce the final block based on their final counts. This is a way to ensure that block producers are not always the same few people block producers are incentivized to act honestly because they can be voted out by the users on Any given cycle? So instead of competing with other nodes, they work together to validate transactions as quickly and efficiently as possible block producers are also required to be active in order to keep the chain moving any producer that has introduced a block in the last 24 hours is removed from voting consideration in this way instead of reaching consensus across every node in the network.
Like Bitcoin, it also uses a democratically selected pool of 21 validators to achieve consensus much faster this does of course come at the cost of some decentralization to take control of the EOS consensus mechanism. You would only need to gain full of more than 50% of the producers in this case that’s 11 notes on the Bitcoin Network. You need to gain control of millions and millions of dollars worth of mining power to successfully attack.
The network dpos is a key part of delivering the revolutionary speed and efficiency that EOS Promises by explaining how it works. We’ve already covered a major part of what makes us unique and effective but there’s much more to learn. So let’s delve into a bit of that. Now the office has a five percent yearly inflation rate and 1% of that is used to reward its block producers a producer share of that 1% is based on their number. Of blocks produced as well as voting reward. The other four percent is put into savings for a worker proposal fund that can be used to invest into anyone willing to improve the EOS infrastructure one huge and final difference between EOS and other debt platforms.
Like etherium is that EOS runs on an ownership model similar to an operating system the theory among the other hand can be thought of as renting out computation power in exchange for the transaction fees what this means is that anyone on the network is entitled to an amount of resources proportional to the number of tokens. They hold so the amount of tokens you home is effectively how the network you own and can use this in a sense remove transaction fees as you could always use the part of the network you own to process your transactions. It does however mean that there’s a barrier to entry to use the network effectively.
If you own very few coins. You have very little access to the network capabilities. It can be tough to use the blockchain as a hobbyist for casual user. If several tokens are required to interact with the chain. If you are someone that owns a higher number of points, you can use the network more efficiently, but you also have a larger amount of money invested. This means that you’re more exposed to any price swings of Acting the token. It also means that to use the chain to its full potential one has to have a higher level of purchasing power. He has has both interesting technology and a strong team behind them. They have every opportunity to do something special. Well, they’re mechanisms in philosophy certainly have potential holes all blockchains do it’s great to see drastically different systems working in the space and we’re excited to see what EOS is unique Vision brings to the table.