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EOS is a layer 1 blockchain designed to solve the scalability issues faced by first and second generation blockchains. Being one of the first blockchains created along with Bitcoin and Ethereum, it helps developers create applications and ecosystems based on the blockchain. This, in turn, allows blockchain technology to be used in logistics and supply chains, decentralized finance (DeFi), gaming finance (GameFi) and other areas.

Introduction

EOS, which uses open source technology, was launched in 2018 by B1, a company headquartered in the Cayman Islands. In its early years, EOS was significantly superior to other projects due to its technical innovations.

However, blockchain development has slowed and venture capital earmarked for public projects based on EOS has been lost. Faced with these problems, projects on EOS lacked the resources to continue operating on the network.

As a result, the creators of the EOS blockchain decided to found a new organization called the EOS Network Foundation (ENF), which is now responsible for the efficient distribution of capital and the development of EOS. Block creators on EOS also accepted the proposal to unblock the tokens used by B1, and the EOS network became a decentralized autonomous organization (DAO).

To achieve full code independence, on September 21, 2022, community engineers led by ENF moved from EOSIO 2.0 to Leap 3.1, a C++-based implementation of the new Antelope protocol. EOS continues to introduce new features to address the scalability issues that blockchains face.

What is EOS

EOS token

EOS uses a Delegated Proof of Stake (DPoS) consensus mechanism. The native token of the EOS network is a utility token that is used to purchase system resources, participate in blockchain governance, move funds in native applications, and record the assets of investors and speculators.

Token holders can also stake EOS and receive a portion of the fees that users pay for using system resources under the EOS PowerUp Model.

EOS Blockchain Basics

In most cases, the main problem in creating public blockchains is lack of scalability. It usually occurs when the network expands and the number of transactions on it increases.

In many blockchains, key performance metrics such as swaps per second, throughput, and latency have not yet achieved the required quality of service.

By leveraging the aforementioned ecosystem capabilities, EOS aims to remove these limitations without compromising network security or developer freedom.

WebAssembly C++ engine

The EOS blockchain uses a high-performance WebAssembly engine (WASM), which executes smart contract code. WASM is designed to meet the needs of blockchain applications, which require much more resources than web browsers.

High throughput, fast confirmations and low latency

To ensure a great user experience, reliable feedback with minimal latency is essential. EOS guarantees high transaction throughput because the DPoS mechanism does not require confirmation from all nodes to complete a transaction. This asynchronous verification style allows for faster confirmations and lower latency, reducing the time from transaction creation to completion.

EVM integration

EOS uses an Ethereum-compatible virtual machine (EOS EVM), which provides Solidity developers on Ethereum with the benefits of the scalability and reliability of the EOS blockchain. Users have access to transactions with minimal fees, as well as open source libraries and familiar tools.

Using Access Keys

The EOS blockchain is based on a comprehensive and flexible access system that allows you to customize access levels for different tasks. Account holders can grant certain permissions to third parties, with the ability to revoke access at any time.

EOS supports a hierarchical account structure, which allows you to manage multiple smart contracts from a single account. In addition, the account owner can share access to changes in the smart contract between several accounts.

Flexibility

Thanks to the design of the EOS protocol, applications built on top of it can be updated. That is, developers can update code, add features, and change application logic if they have permission to do so.

EOS also allows developers to implement immutable smart contracts. Moreover, all decisions are made by the EOS developers themselves, and not by the protocol.

Programmable resource allocation and control

Developers can modify system smart contracts to create custom economic models and governance rules. Since changes do not always require updating the underlying code layer, this on-chain mechanism can be modified using the system's smart contracts.

What makes EOS unique?

Readable account names

EOS uses easy-to-read account names to make it easier for users to remember the addresses they interact with. Instead of long strings of random characters, EOS accounts typically use memorable and easy-to-read addresses such as “Alice.gm.”

Minimum transaction fees

EOS offers users minimal transaction fees, making it an ideal blockchain for sending or receiving micropayments. This makes Web3 more accessible to users, as high gas fees on other networks significantly increase transaction costs.

Almost instant transaction confirmation

In cryptocurrency transactions, completion ensures that transactions will not be reversed or modified once completed. The speed of the blockchain will affect the confirmation and completion time of transactions.

Currently, transactions on EOS take approximately three minutes to complete, compared to 60 minutes on Bitcoin and six minutes on Ethereum.

However, compared to completing transactions in Web2, three minutes is still quite slow. Therefore, ENF and its key technology partners, known as the Antelope Coalition, launched the Instant Finality initiative to ensure that transactions are completed quickly and irreversibly.

Energy efficiency

The DPoS mechanism in EOS allows nodes to confirm transactions faster and with less network resources. Because this mechanism does not involve mining, unlike Proof of Work (PoW) networks, the EOS network is one of the most energy-efficient blockchains in the industry.

Base layer protection

Recover+ (R+ for short) is a cybersecurity portal and disaster response program designed to protect EOS DeFi projects and their users by rewarding ethical ("white hat") hackers for finding bugs. The response program helps quickly recover stolen funds in the event of a malicious hack.

On November 5, 2021, the blockchain lending platform Pando Rings was hacked, resulting in the theft of more than $70 million in funds. Although the Pando Rings app was not built on EOS, the attackers also stole more than $2 million in EOS tokens. Using the program The Recover+ team was able to intervene and freeze the stolen funds, thereby protecting EOS DeFi users.

EOS Working Groups

Since ENF's inception in 2021, the foundation has funded several EOS working groups to improve the ecosystem. In addition, he proposed a number of practical measures in the schemes to improve several key areas, including core infrastructure, APIs, SDKs, DeFi and security analysis tools.

EOS Network Ventures

EOS Network Ventures (ENV) is a $100 million venture capital fund whose mission is to raise capital and invest it in the development of the EOS Network. It also makes strategic equity and token investments in technology startups in the Web3 space. ENV's areas of focus include (but are not limited to) GameFi, Metaverse, eSports, NFTs and Fintech.

EOS Network Foundation

The EOS Network Foundation (ENF) is a community-led non-profit organization founded in September 2021 by Yves La Rose. The Fund is dedicated to identifying opportunities for investment, funding and collaboration to advance Web3 innovation.

To achieve this, ENF coordinates funding for socially important initiatives and non-financial support for the growth, development and mass adoption of the EOS network. Since its inception, numerous public programs have been organized and funded, contributing to the creation of key EOS developments.

On November 9, 2022, ENF initiated a proposal to launch a $100 million ecosystem fund managed by ENV.

In conclusion

Being one of the first blockchains created along with Bitcoin and Ethereum, EOS has successfully overcome past difficulties and adapted to modern requirements. It builds a robust system to leverage its performance, flexibility, and scalability to deliver a seamless experience in the GameFi Web3 space for both developers and end users.

  • What is Level 1 Blockchain

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