What is the value of EOS?

2018-04-14

As EOS’s main net launch time gets closer and closer, the focus of the global cryptocurrency society has focused on EOS, and the 21 super node campaigns have attracted all the interest in the block chain world. Thus, EOS does a good job in marketing and community building, which is closely related to the fund raising model of EOS.

A new version of EOS white papers is released on March 18, 2018:

https://github.com/EOSIO/Documentation/blob/master/TechnicalWhitePaper.md

Revisions compared between the old and new white papers:

https://mp.weixin.qq.com/s/ZDXE8o3f1iaKh_bw4GFESQ

1.Project Introduction

EOS.IO:The block chain commercial operating system of high performance next generation.

EOS.IO software is a dynamic and universal bottom block chain platform which is being developed by Block.One. Applications can be built on top of it to make decentralizing applications better horizontal and vertical.

The account, authentication, database, asynchronous communication, and application scheduling across hundreds of CPU cores or clustersis provided by EOS. It can be expended to deal with millions of tps, exempt transaction fees, and allow decentralized applications to be operated fast and effortless.

2.Background and Objectives

With the birth of bitcoin in 2018, block chain technology has gradually been recognized by the public. Ten years’ developed have passed since Nakamoto designed the POW consensus algorithm. Problems such as slow speed, high fees, and high energy consumption have begun to be exposed. In addition, Bitcoin does not implement Turing Complete and cannot achieve more functional expansion.

In order to execute smart contracts the ethereum was born, and then the biggest improvement was to support "Turing Complete" and became a programmable block chain network system.

It is impossible to build large-scale universal applications on Ethereum. Just because of the design of the gas charging mechanism that consumes all network resources in order to resist hacking attacks and infinite loop bugs.

Moreover, the 15-second delay in each new block is nothing to Ethereum's wallet. However, 15 seconds is a long time for the implementation of text and thumb up.

Blocking the large-area application of block chain technology is the pain point of existing block chain platforms, such as slow transfer rates, high transaction costs, high system concurrent processing difficulty, security defects, and development difficulties.

To be a successful block chain application must meet these requirements:Support for millions of users, free use, easy upgrades and Bug fixes, low latency, serial performance, and parallel performance. EOS is to run this goal - to be an operating system that can really support commercial applications.

3.Founder BM and Team

BM is the core founder of the EOS team and the top technologist in the block chain. The real name is Daniel Larimer, the Byte master, who is also the founder of BTS and Steem. From April 2017 to present, he holds the position as the CTO of Block.One, fully lead the development of EOS.

BM once said in his introduction, previously developed BTS and STEEM were just a single application, and what he wants to do is a universal system. This is why he wants to do EOS.

Block.one is a first-class technology team of EOS. The team is committed to "decentralizing everything." They want to design a free market system that can be implemented by providing open source code for anyone to use. To ensure the safety of life, freedom and property.

Let’s take a look at the code update for EOS.IO on github:(https://github.com/EOSIO/eos)

The Code Updates of EOS (April 14, 2018)

You can see the github codebase of EOS.IO on the Web site, which currently has 93 developers involved. The code base has been updated 4792 times, and it has been forked 1362 times. (The equivalent of being cloned 1362 times, most developers find the code useful to fork, and the data reflects the developer’s focus on the project)

On January 25, EOS received a "B" rating from the well-known independent Ratings agency Weiss Ratings in the United States. This is also the highest ranking in all digital currencies. This proves that the progress and development potential of EOS projects are also recognized from the side.

4.Product Analysis and Technology Innovation

One. Greatly improve the speed of transactions

EOS transactions can range from 25000 to 50000 per second. It’s going to take parallel technology, and it will eventually reach millions of transactions per second, Other development application platforms can be allowed to run on the EOS.

EOS has learned all the experience from Steem and BitShares, which will speed up the native code by 80%. According to the latest white paper, the speed of new blocks has increased by six times, from 3 seconds a block to 0.5 seconds. The speed of the transaction has been lifted on such a large scale because of the consensus algorithm using EOS: BFT-DPoS, that is, the consensus algorithm of a Delegated Proof of Stake (DPoS) consensus algorithm with a Byzantine-Fault-Tolerant (BFT) mechanism.

The execution of code on EOS does not require all nodes. EOS selects 21 super nodes (100 spare nodes), which are block producers. The block order is set randomly by the system and will change at any time, which can upgrade efficiently and avoid hard forks at the same time. According to the algorithm, at least 15 of the 21 nodes reach a agreement, which can determine the packing order and the other nodes are satisfied with the result.

The new Byzantine Fault Tolerance (BFT) mechanism in the White Paper will guarantee that transactions taking place on the EOS main chain will become the statement of “irrevocable” within 1 second, and second-level confirmation becomes possible.

BM has also said that centralization is inevitable in many cases, just as there is a cost to doing anything. Decentralization is not an end, but it is a method to counter censorship and keep the Internet from being shut down by outside powers.

Formally, DPOS is indeed more central, but for random reasons, the block order can be exponents of 21 × 21. Comparing Bitcoin, it is equivalent to changing the reliance on force, that is, violent competition, to random distribution. This is also an improvement.

The most important thing is that all the network of EOS is the verifier, the community, the block producer, the other nodes are all monitoring, and the user who dares to break the rule steps down and 100 standby nodes can be filled at any time. Therefore, even if the producers on the EOS cannot master evil resources even if they have mastered the work force resources, then there will not be any gains from doing evil. Therefore, it will not be as central as the POW.

Two. Users use network resources free of charge, and have higher security and avoid DOS attacks

EOS uses the ownership model, which means that the number of EOS tokens held determines the occupied EOS network bandwidth. If there is 1% EOS token, users can use 1% of the whole network computing or storage resources, which are guaranteed by the system. If the network is not congested, users can use more system resources than they should use, but as long as the network is congested, the upper limit of system resources that users can use will fall to their share of equity. Therefore, this mechanism has high security, avoiding DOS attacks, and the network cannot be washed away.

EOS tokens are equivalent to the ownership of network resources, and users can only use a corresponding proportion of network resources. Therefore, DOS attackers can only use the corresponding proportion of bandwidth resources of their EOS tokens, forming a natural system barrier, so that DOS attacks may only appear in an application, but these attacks will never destroy the entire network, so EOS is designed to improve the security of the entire basic chain.

Higher security is also reflected in the ability to retrieve the private key. Private keys represent people’s control of wealth. Account recovery is a major feature of EOS. The private key is the only proof to prove to the world that you have wealth in a decentralized way. EOS can recover the secret key to ensure the safety of the user’s property. Within 30 days, the user can default a partner who can help him recover his account, and the partner can restore the user's private key if necessary according to the preset instructions. The partner cannot restore the secret key independently, and must have the joint participation of the original private key holder, meanwhile, the partner also cannot participate in the daily transaction, thus reduces the moral hazard to zero.

In summary, BM is the person who pursues true security and freedom. In the future, when the identities of family and friends are confirmed on the blockchain, the decentralized system will ensure that everyone recognizes each other's property rights. Therefore, he will restore control of the property to those who belong to it.

Three. Quickly reach a consensus, easy upgrade and bug fix, avoid hard fork

Compared with Bitcoin and Ethereum, the BFT-DPoS consensus mechanism of EOS is highly efficient. EOS’s binding contract is equivalent to the “constitution” which clearly defines the entire platform: In the system’s operation, when the system is wrong, it can distinguish whether the error is a bug based on the readability intention, and judge whether the community repair is correct. With this mechanism, if new technologies emerge in the future, they can be easily added to the EOS system, which is beneficial to the upgrade and iteration of the system.