What is EOS?
EOS is a decentralized, blockchain-based system that enables the development, hosting, and implementation of commercial scale decentralized applications (dApps) on its platform.
There is no official complete form for EOS, and the makers decided not to formally define it themselves. EOS supports all the core functions required to change businesses and people to make blockchain-based applications in a very manner just like web-based applications, such as providing secure access and authentication, permission, data hosting, usage management, and communication between dApps and the internet.
This is also supported by the web-toolkit for interface development, making it a complete offer for hassle-free application development. Basically this works in a manner similar to the Google Play Store and the Apple App Store.
EOS.IO and EOS Tokens
The EOS ecosystem consists of 2 main elements: Eos.io and EOS tokens.
To draw parallel, EOS.IO is similar to a computer operating system - it manages and controls the EOS blockchain network. EOS.IO uses a blockchain architecture that is built to activate vertical and horizontal scales from decentralized applications. EOS tokens are cryptocurrency from the EOS network.
A developer only needs to hold an EOS coin, rather than spending it, to be eligible to use network resources and to create and run dApps. Token holders who do not run any applications can also allocate or rent bandwidth to other participants who might need it.
Currently in hand by the block.one organization, EOS was launched by Dan Larimer, who is also the founder and founder of established platforms such as Bitshares and Steem.
How is EOS Different?
Although there are already a variety of blockchain-based networks like Ethereum, which facilitate decentralized applications, EOS focuses on pain relief points from the blockchain and attempts to solve the problems of speed, scalability, and flexibility that are often obstacles to the blockchain - system based. (For more, see An Introduction to Ethereum Classic.)
With the size of the dApps ecosystem increasing every day on certain blockchain networks, it often suffers due to the limited availability of resources on the network. They include problems such as networks increasingly constrained by a large number of fake transactions and similar requests, spam applications, slow execution speeds, and limited computing power available throughout the network.
EOS.IO tries to overcome this problem by offering more scalability, flexibility and usability through its unique mechanism.
It claims to be able to support thousands of economic scale apps while not touch performance bottlenecks through the utilization of parallel execution and out of synchronize communication methodologies across the network. Efficiency is more driven by separating various modules involved in dApps work. For example, the authentication process is done separately from the execution process.
EOS.IO offers flexibility within the development and maintenance of dApps through varied features. Its ownership structure promotes free use by users, and eliminates transaction costs because developers are allowed to use resources in proportion to their ownership rather than the payment model per standard transaction. It also makes it easy for application developers to predict hosting costs, and allows them to make effective monetization strategies.
EOS uses delegated possession ideas and role-based permission ideas, which permit flexibility to create instant high-level selections, like rollback, freeze and bug fixes from broken applications, through majority agreements among designated stakeholders.
It comes with major usability features - a web toolkit for developing interfaces, self-describing interfaces, self-describing database schemes, and declarative permission schemes - which make the work of developers easy to create and maintain applications.
EOS Democratic Inflation Economy
EOS settings do not have any mining concepts. Conversely, there are only block producers that produce the number of blocks needed and get rewarded with the creation of new EOS tokens for each new block they produce. Block producers have the flexibility to publish the desired number to pay expected, and the number of tokens made is calculated based on the median value of the expected salary issued by all block producers.
Because block manufacturers clearly want higher payments, this feature can be easily misused. To overcome this problems, there is a mechanism to limit producer awards so that the total annual increase in supply of tokens will not exceed 5%. Token holders, who are voters on these matters, have the authority to opt out of block producers who demand more inflation, which is deemed necessary.
This mechanism acts to complement EOS storage, because all token holders will pay for file storage on the EOS network through a portion of annual inflation. As long as they store files on the network, their EOS tokens are going to be control back, and can lose worth at the rate.
The more storage needed, the more blocks will be asked from block creators who can demand more value for their work through higher inflation payments that can be approved by token holders. In the event that storage demand decreases, inflation will be lower, thus leading to a smaller decrease in the value of EOS tokens.
