summary
EOS is a Layer 1 blockchain that aims to solve the scalability issues faced by first- and second-generation blockchains. As the longest-running blockchain in the industry after Bitcoin and Ethereum, EOS has been used by developers to develop blockchain applications and ecosystems. This in turn unlocks use cases in areas such as supply chain, decentralized finance (DeFi), and game finance (GameFi).
Introduction
EOS was launched in 2018, using open source technology from Cayman Islands B1 Company. In its early days, EOS was known for its strong technological innovation and outperformed other projects.
However, EOS development has slowed since then, and venture capital originally promised to community projects built on EOS has fallen through. Faced with these challenges, projects on EOS no longer have the resources needed to continue operating on the network.
In response, EOS block producers reached a consensus to create a new entity called the EOS Network Foundation (ENF), which is now responsible for the efficient deployment of capital and the development of EOS. EOS block producers also passed a proposal to stop locking tokens or token vesting for use by B1, and the EOS network thus became a decentralized autonomous organization (DAO).
On September 21, 2022, in order to achieve absolute independence of the code, community engineers led by ENF switched from EOSIO 2.0 to Leap 3.1, completing the C++ implementation of the new Antelope protocol. Today, EOS continues to address the scalability challenges facing blockchain with its new features.
What is EOS?
EOS Token
EOS uses Delegated Proof of Stake (DPoS) as a consensus mechanism. The native token of the EOS network, EOS, is a utility token used to purchase system resources in its network, participate in EOS governance, transfer value on native applications, and be calculated by investors and speculators.
Token holders can also stake their idle EOS tokens to receive a certain percentage of the transaction fees collected from users who wish to use EOS system resources through the EOS PowerUp model.
Introduction to EOS blockchain
Scalability is the biggest obstacle faced in building public blockchains in many real-world scenarios. As blockchain networks grow and transaction volumes increase, scalability issues tend to arise.
In many blockchains, commonly discussed blockchain performance metrics such as transactions per second, transaction throughput, and latency have not yet reached adequate quality of service levels.
With the ecosystem features mentioned above, EOS aims to address these limitations without sacrificing network security or developer freedom.
WebAssembly C++ Engine
At the core of the EOS blockchain is a high-performance WebAssembly (WASM) engine responsible for executing smart contract code. The engine is designed to meet the needs of blockchain applications, which require WASM engines much more than web browsers require WASM engines.
High throughput, fast acknowledgment, and low latency
A good user experience requires reliable feedback and a delay of no more than a few seconds. EOS is able to achieve high transaction throughput because it uses the DPoS mechanism, which allows final confirmation without waiting for all nodes to complete the transaction. This asynchronous verification method allows for fast confirmation and low latency (latency is the time it takes for a transaction to be accurately confirmed after it is initiated).
EVM Integration
EOS has an Ethereum-compatible virtual machine (EOS EVM), which Solidity developers on Ethereum can use to enjoy the scalability and reliability of the EOS blockchain, including providing users with nearly free transactions and access to the open source code base and tools they are already accustomed to using.
Obtaining permissions through access keys
The underlying design of the EOS blockchain includes a comprehensive and highly flexible permission system that allows the creation of custom permission models for a variety of use cases. Account owners can grant specific authorizations to third parties and have the right to revoke these permissions at any time.
EOS supports a hierarchical account structure, and any user can manage multiple smart contracts under one parent account. In addition, the account owner can also assign the permissions required to modify the smart contract to different accounts.
flexibility
Thanks to this protocol design, applications deployed on EOS are upgradeable, meaning that developers can deploy code fixes, add features, and change application logic as long as they have the necessary permissions.
EOS also allows developers to deploy smart contracts that cannot be modified. These decisions are made by EOS developers themselves and are not governed by the protocol.
Programmable resource allocation and governance
Developers can modify system smart contracts to create customized economic models and governance rules. Since the core code layer does not always need to be updated to make changes, system smart contracts can be used to modify this on-chain mechanism.
Why is EOS unique?
High account readability
To make it easier for users to remember their accounts and the accounts they interact with, EOS uses human-readable accounts. EOS accounts typically use recognizable addresses (such as "Alice.gm") rather than long strings of random characters.
Low transaction fees
EOS provides users with almost free transaction services, making it an ideal choice for small payments. This solves a major barrier to entry in the Web3 space, as other chains often charge gas fees, which can greatly increase the cost of a single purchase for users.
Near-instant confirmation
In cryptocurrency transactions, final confirmation refers to the guarantee or assurance that a transaction cannot be reversed or changed once it is completed. Since the speed of the blockchain determines the speed at which transactions are confirmed and completed, it affects the speed of their final confirmation.
Currently, EOS’s final confirmation time is about three minutes, which is much faster than Bitcoin’s 60 minutes and Ethereum’s 6 minutes.
However, compared with the final confirmation speed of Web2, three minutes is still very slow. Therefore, ENF and its core technology partner Antelope Coalition launched the Instant Finality program to provide users with irreversible instant transaction settlement services.
Energy efficiency
EOS's DPoS mechanism enables its nodes to verify transactions at a faster speed and with less network resources. Since the EOS network does not involve mining like the Proof of Work (PoW) network, it is one of the most efficient blockchains in the industry.
Base layer insurance
Recover+ (R+ for short) is a cybersecurity portal and rapid response program for emergencies that aims to protect EOS DeFi projects and their users through bug bounties and white hat rewards. With this response program, stolen funds can be quickly recovered in the event of a malicious hack.
On November 5, 2021, the blockchain lending platform Pando Rings was hacked and more than $70 million was stolen. Although Pando Rings is not an EOS-based application, the attacker still stole more than $2 million worth of EOS tokens. Thanks to the Recover+ program, the Recover+ team was able to intervene and freeze the stolen funds, thereby protecting EOS DeFi users.
EOS Working Group
Since its establishment in 2021, ENF has funded several EOS working groups to improve the ecosystem. In addition, it has recommended a series of executable projects through the "Blue Book", proposing improvements in multiple areas such as core infrastructure, APIs, SDKs, DeFi, and security analysis tools.
EOS Network Ventures
EOS Network Ventures (ENV) is a $100 million venture capital fund that aims to attract and deploy capital investments to profitably support the EOS network. In addition, ENV will make strategic equity and token investments in technology startups in the Web3 space. ENV's investment scope includes, but is not limited to, GameFi, Metaverse, Esports, Non-Fungible Tokens (NFTs), and Fintech.
EOS Network Foundation
The EOS Network Foundation (ENF) is a community-led non-profit organization founded by Yves La Rose in September 2021. ENF’s mission is to identify investment, seed funding, and partnership opportunities in the pursuit of Web3 innovation.
To this end, ENF coordinates public welfare funds and non-financial support to promote the growth, development and global adoption of the EOS network. Since its establishment, ENF has organized and funded multiple public welfare projects and made outstanding contributions to the key development of EOS.
On November 9, 2022, ENF announced a proposal to launch a $100 million ecosystem fund to be managed by ENV.
Conclusion
As the longest-running blockchain after Bitcoin and Ethereum, EOS has overcome past challenges and adapted to the demands of the present since its launch. Looking ahead, EOS will continue to move toward its goal of building a robust system that leverages its performance, flexibility, and scalability to create a native Web3 GameFi experience for developers and end users.
