Seven years ago, he challenged Satoshi, who rolled eyes on his contention. Later he brought that disagreement to Vitalik. Having raised $180 million in five days, his token surged for 49% on the first
By: Huobi Global
Tags: Huobi, Blockchain, Eos

Seven years ago, he challenged Satoshi, who rolled eyes on his contention. Later he brought that disagreement to Vitalik. Having raised $180 million in five days, his token surged for 49% on the first day on Huobi Pro

The first commercial level operating system on the blockchain

Thanks to the greatest inventors in this generation, everything we know becomes obsolete the next day.

Since the 1990s, cryptographists have tested a series of concepts in a limited environment: electronic cash, smart contract, Proof-of-Work, etc. With the development of internet and education, the engineering geniuses in this century are finally starting to make the dreams come true.

People witnessed bitcoin to be the invention of a cryptocurrency, a mechanism of consensus, and a public distributed ledger.

Through ethereum, people understand what smart contract is, and how it can automate complicated transactions on this shared public distributed ledger.

EOS is advancing all these achievements, claiming to integrate the blockchain with our everyday lives and to make the blockchain applications available for the mass market.

Yet a variety of factors have kept the blockchain from being adopted at a substantial scale, including both external constrains and also internal limitations：

1. Incapable of supporting large scale of simultaneous transactions

Still remember the network jam?

2.The difficulty and complexity of developing and operating applications in a decentralized environment

You have got to study the cryptography for half a year first before starting programming…

3.the high transaction fees jack up the threshold

When I transfer to you all the $15 worth of bitcoin I have, you will only receive half of it after the transaction…

4.the community has too many voices to manage. The common way for an upgrade is usually a hard fork, which leads to a community split

System debug? Let’s hard fork. Another upgrade? Let’s hard fork again. It’s like the dancing demon…

But EOS (Enterprise Operation System) claims it will solve all these problems by becoming the foundation for blockchain applications to flourish.

Highlight 1

Enable bank-level simultaneous transactions

We all know that ethereum currently adopts the same proof-of-work consensus mechanism as bitcoin, with a future plan of switching to PoS. The largest problem of PoW is the long cycle for reaching a consensus and with an increase of hash power and threshold in the future, the network is going to become more and more centralized.

EOS adopts a different consensus mechanism called Delegated Proof of Stake (DPoS). All the nodes in the network vote for N block producers. These producers will validate each block transaction with signatures. Such method will reduce the number of validators to improve the efficiency, making the decentralized network able to process large amount of transactions. Of course, the mechanism has also developed a way to prevent cheating, which we won’t go into details here.

This gives EOS the capability to process transactions that are several levels ahead of that of any public blockchain. Once the development is finished, EOS will be the first platform that supports commercial level applications. Under a harsh testing environment, it is able to process 10K to 100K transactions per second. In addition, EOS also adopts the simultaneous processing technology, which further enhances the scale to several millions per second. Under such standard, EOS will have the potential to support several thousands of DAPP running simultaneously on its platform.

Below is the comparison of transaction per second:

Bitcoin: 3

Ethereum: 30

Visa Mastercard: 20,000

Facebook:52,000

Shenzhen Stock Exchange: 300,000

Amazon Web Service: 1000,000

EOS: Several millions(If it is achieved)

*Note: the transaction here refers to the data transmission in the technical field, not the order book transactions in the financial exchange market.

Highlight 2

Substantially reduce the difficulty of application dvelpment

Previously, developers had to start from scratch to build a smart application using a centralized computer. As such, every one of them had to face and solve the same problems: the account database and the recovery process. What they lack is an operating system. Such operating system provides the general functions that every application needs so that the application developers will focus more on their business logistics.

For instance, in the past, when you open an online store to sell Huobi T-shirt, you need to develop a transaction system, a product display system, a database of user accounts, customer service and supply chain records, etc. It drives you nuts: all I want is to simply share with everyone my aesthetic sense of design and life, why do I have to complete all these things that I’m not good at?

Then there comes Taobao, which solves every headache above for you. All you need to concentrate on is what product and style of Huobi T-shirt you provide, which model from Huobi you need to hire, and how to attract more customers.

EOS aims at being such an operating system for blockchain developers. Differing from the concept of ethereum, EOS will offer the common functions and models for different blockchain applications. In a nutshell, it is an operating system that has a comprehensive set of foundational features that makes it convenient and easy for developers to base on the EOS system to develop their own applications swiftly.

Highlight 3

No fuel needed, No network jam

Most of the users have experienced the traffic jam in the bitcoin and ethereum networks.

You: Sweetheart, it has been three hours since I applied to withdraw my coins from Huobi Pro, how come it still hasn’t arrived in my wallet?

Huobi Customer Service: Dear customer, the network is still confirming the transaction, please bear with us.

You: OMG……Miners, please help me jump the queue. I can pay more.

(Miners will prioritize users who have attached higher fees for their transactions)

This is not likely to happen on EOS as it will forsake the model that uses miners to confirm and execute transactions. Instead, it switches to the stakeholder model, meaning if you are a stakeholder of the tokens, you will be allocated with the resources of EOS network bandwidth, storage and computation that are proportionate to the number of tokens you hold. If you own 1% of the tokens, you own 1% of the EOS resource, regardless whether there’s a network jam elsewhere.

Ever since its debut in 2017 Consensus, EOS has received attention from a variety of sectors, and is recognized by some media as the “First commercial level operating system in the blockchain industry,” “Unprecedented blockchain operating system,” and “The Google in the blockchain industry.”

High profile founders

EOS is led by Block.one and consists of talents like Brendan Blumer whose previous company trades MMORPG gaming tokens, CTO Daniel Larimer (A blockchain legendary, more details below) and Brock Pierce (Blockchain Fund Chairman, co-founder of Blockchain Capital) and more.

Brendan Blumer

Brendan Blumer, a.k.a BB, is the CEO of Block.one. He has shown extraordinary passion and dedication to the EOS operation. As such the industry’s legendary BM only takes up the role as the CTO of EOS, focusing on the development front and not intervening the project operation with his geeky mindset.

BB was very thoughtful to create his profile on China’s Twitter equivalent Weibo. If you are interested in the EOS project update, feel free to follow him.

（BrendanBlumer: I’m now on Weibo.）

(BB’s Weibo post. It seems like he prefers emoji rather than Chinese)

B M

Daniel Larimer, a.k.a BM (from his user name on Github, Bytemaster), also serves as the CTO of Block.one. He is probably the only person that has successfully developed three decentralized blockchain projects in a row. Besides EOS, he is also the developer and co-founder of the world’s first decentralized exchange platform Bitshares and the blockchain social media platform Steemit.

BM challenged Satoshi, who rolled eyes on his contention

As early as July 2010, BM raised concern on Bitcointalk to Satoshi, arguing that the confirmation time of 10 minutes for transactions was too long and a change of the consensus mechanism might help the system to achieve the efficiency just like using a credit card. Yet Satoshi left a famous quote: “If you don’t believe me or don’t get it, I don’t have time to try to convince you, sorry.”(You can already imagine Satoshi rolled eyes in front of the computer)

BM didn’t fight back. Instead he switched the gear to developing the decentralized exchange platform BitShares and created the DPoS mechanism, in order to make the blockchain-based transaction speed as fast as that among financial institutions. In 2014, the contentious slogan “Beyond Bitcoin” emerged, which at the same time had upset many big shots in the industry. While many fans looked up to these blog posts, they were deleted later by Bitcointalk’s administrators.

(Satoshi’s response on Bitcointalk. The thread had already been deleted. Click on it to view the picture. Refer to the watermark for the source of this picture.)

BM Disagreed With Vitalik

BM and Vitalik are both genius engineers. Vitalik Buterin is the founder of ethereum and BM is also a serial entrepreneur in the industry. To me, their fight is more like a discussion among engineers, instead of trash talking. The main discussion is mostly around the comparison between PoW and DPoS, regarding the decentralization, the management ability, resources and costs, anti-Dos attack and the consensus cycle, etc.

（BM at the left, Vitalik at the right）

BM has also interviewed Vitalik, exchaing thoughts rigorously.

BM spoke to Vitalik in a conversation video

BM has led three projects, Bitshares, Steemit and EOS, all based on the same underlying technology to ensure a smooth transaction and user-friendly experience. This sheds lights on a promising future of the industry. We will introduce his two other projects next time.

（A writer how has make $15,000 by publishing an article on Steemit）

EOS, a somehow different token

EOS has a different token sales model from others. With a total supply of 1 billion, the sale goes on for one year, during which you can send ETH to participate in the token sales or directly purchase tokens on exchanges such as Huobi Pro.

Click here to read more: https://eos.io

It was followed by controversy. BM explained in an interview later on that the rationale was to allow as many people as possible to participate in the sales. If the token sales was limited to only a few days like most other projects, it would become exclusive for the rich. Doesn’t this resonate with his vision of EOS to be ready for the mass market?

（EOS’s official website https://eos.io show daily sales）

On June 26, Block.one started the token sales of EOS, with a plan to sell 1 billion in the next 355 days. After the main network of EOS goes online, the EOS token which derives from ethereum will be switched to the token for the main network.

From June 26 to 30, the project had already sold out 20%, namely 200 million tokens and raised $185 million within five days. Such result broke the worldwide ICO records at the time.

The remaining 70% would be sold at a rate of 2 million per 24 hours for the next 350 days starting from July 1. The rest 10% is reserved for Block.one, not for sales or exchange. The inflation every year will not exceed 5%, which serves as a reward for DPoS.

（Historical price chart of EOS tokens）

（EOS surged for 49% within the first hour it was listed on Huobi Pro）

Token Utility

The token of EOS derives from the EOS blockchain infrastructure that is currently based on Ethereum as the main network of EOS is still in the development process. The EOS tokens have three major use scenarios: broadband and log storage (hard drive), computing and computing storage (CPU) and status storage (RAM). Specifically:

1.Service providers pay for the network: In the EOS system, users do not need to pay for the network, namely the miner fee. Instead, they only pay for services. Service developers and providers, on the other hand, pay the EOS network. These developers will tailor-make a payment rule based on their service and product.

Take the online shopping as an example. You don’t need to pay for the server where the online shop hosts its website. You pay for whatever service the shop offers you. And the shop will pay for its maintenance associated with its operation.

2. Authorization: If a blockchain is based on the EOS software system, and its token is held by a token holder, then he or she may not decide to use up all the available broadband. In this case, the token holders can choose to give or rent the unused broadband to the others.

3. Separate the exchange price and token value: if the application holders hold a fix number of tokens, then the application will continue the operation in its predefined status and broadband. Developers, users and the system will not be affected by the altcoin market fluctuation.

4.Block reward: EOS will reward new tokens to new block producers as an incentive for them to maintain the operation. So far EOS has set the block reward cap, with a maximum at 5% of the total supply each year

Risk warning

Despite of all the advances of EOS we have mentioned, Huobi Pro also has the responsibility to make notes on its risk.

1. The project development is still ongoing, which is anticipated to be online in 2018. It’s like investing in a company that doesn’t even have a market-ready product. The return of the investment purely depends on whether the company and its team is reliable, which inherently comes with a risk.

2. After the project goes online, it also takes time for other applications to develop. It remains to be seen whether the DPoS that EOS advocates will be able to support the massive scale of DApp operation and community management.

Visit www.huobi.pro to view the current price and trade with EOS tokesn.

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