4 Never-Before Revealed Lessons Intending Blockchain Investors Can Learn From The EOS Success Story


EOS Turned The Curve and Here are Lessons To learn






The Blockchain has turned out to be one of the most productive technologies to be introduced to the public in the last decade. It has completely brought a shift in our perception of currency for value transfer, making digital storage and transfer of assets possible without the traditional restrictions of centralization and need for trust between transacting parties.

The Bitcoin was the only known cryptocurrency when the Blockchain gained ground in 2009, but over time many other currencies have emerged, bringing more innovation, speed and safety to the cryptocurrency space. One of such tokens is the EOS.

EOS was launched on June 26, 2017 and lasted till June 1, 2018. Touted as the most powerful infrastructure for decentralization, EOS is a decentralized system based on the blockchain technology that facilitates the development, hosting and implementation of decentralized applications (dApps) on a large commercial scale on its platform. It is like Ethereum in function, but its better features have earned it the nickname “Ethereum killer”.

The vision upon which EOS was built is to design a blockchain dApp platform that can safely and smoothly scale to thousands of transactions per second, alongside giving an available experience to app developers, entrepreneurs and users.

The aim of the project was to provide a holistic operating system for decentralized applications by providing services like user authentication, cloud storage and server hosting. Little wonder it is acclaimed the project with the largest ICO ever, gathering about $700 million from the 1-year long sale.

The major desire on the minds of anyone with dreams of floating a successful crypto project in the nearest future that will meet and beat the records set by the EOS will be to know what made it stand out among other projects and achieve so much success. Some of the distinguishing factors are discussed below.

OVERCOMING BOTTLENECKS IN PERFORMANCE


Most blockchain networks are known to suffer problems as number of dApps on the network increase. These problems are due to a limited amount of resources available to the network and include constrains due to false transactions and requests that are alike, restricted computing power and minimal speed in execution of transactions.

EOS designed a system that overcomes these challenges through parallel execution and non-simultaneous communication across the blockchain.

The different operation modules are also separated, such that they can function optimally simultaneously.

This design of making divisions stand alone and yet work optimally as an overall system needs more research to bring optimum results, thus innovators seeking to break into the market with jaw-dropping features should take up the challenge of improving on the solutions EOS has brought.

DEMOCRATIC ECONOMY


As opposed to the concept of mining that usually requires lots of processing power, EOS rather makes use of some block producers who generate the needed number of blocks and get remunerated by the production of new EOS tokens for every single new block they churn out.

Block producers possess the needed flexibility to publish a sought-after figure for their anticipated reward, and the number of tokens that they generate is computed based on the median value of the expected pay published by all block producers.

To avoid a case of abuse by the block producers due to quest for higher pay, a mechanism was added to cap the maximum of the total annual rise in supply of tokens at 5%. Holders of the EOS tokens are also given powers as voters to be able to kick out any seemingly greedy producers.
This idea is a great one, and anyone interested in floating new and successful projects must investigate better ways of improving this system for better results that will compete with this innovation by the EOS team.

SCALING UP


It is common knowledge in the cryptosphere that most blockchains use the consensus over state system, in which every computer on the network can, at any moment in time, confirm the current state of the blockchain. EOS introduced a new technology that enables handling over a larger volume of transactions that its predecessors.

This system is called consensus over events, where the focus is on the transactions rather than the state of the blockchain. In this case, nodes authenticate the series and sequences of events that have happened so far to keep tabs on network state.

Though this system takes more time to reconfirm the history of the track of events it was monitoring before a restart rather than verifying the state of the network at any given time, it can handle a larger throughput of transactions if it is up and running.

In fact, the network can scale up to one million transactions every second out of the gate on one machine, and theoretically there is said to be a possibility of infinite scaling between multiple machines set in parallel.

This shows how important scaling up the throughput handling capacity of any blockchain is to attracting users, and this is an important area every intending cryptopreneur must make massive research into and bring innovations that provide competitive capacity to.

LONG-TERM TOKEN DISTRIBUTION


The EOS team devised an intelligent and new method of getting their tokens widely accepted and subscribed to throughout the cryptocurrency ecosystem by making the ICO period last through a window up to one year. The ability of the team to also keep the token price at a realistic value during this one-year is also extremely laudable, as it made subscription attractive.

This was one of the masterstrokes that led the project to harnessing the largest amount of resources ever garnered by any ICO in crypto sphere history. Intending crypto start-ups should therefore consider their ICO window and see how their tokens can be made widely available for subscription at realistic prices.

CONCLUSION

There is a lot of room available for improvement in blockchain technology and aspiring or existing cryptopreneurs can learn some lessons from the strengths and weaknesses of the EOS project to turn out more successful projects.

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