Of all the coins and tokens doing the round in
Of all the coins and tokens doing the round in cryptoverse, one notable one is the EOS crypto token, alternatively referred to as the EOS cryptocurrency. You might know how well EOS has been doing, steadily climbing the crypto charts while at it. You might also know how the EOS blockchain has increasingly becoming the platform for choice for many ICOs. What is the EOS cryptocurrency? How does it really work? What are the features that make it so popular? Let us find out in this beginner’s guide to EOS cryptocurrency.
What is EOS?
We all know that Ethereum is the blockchain of choice whenever it comes to companies or enterprises developing networks and applications for various use cases. EOS tries to tap this very need. For this reason, it has been termed the Ethereum killer. EOS tries to create a nifty platform meant to provide easily usable and accessible services for building dApps or decentralized applications. It tries to combine the best aspects from the most well-known blockchain networks such as Bitcoin’s safe and secure ecosystem or Ethereum’s versatile and intense computing power. In essence, it tries to put together a scalable platform dApp development.
What is the EOS Cryptocurrency?
Just like Ether is referred to as Ethereum’s cryptocurrency although it is actually a token, the EOS token is interchangeably called the EOS cryptocurrency. With regard to the difference between cryptocurrencies and tokens, it suffices to mention that tokens allow you certain stakes and votes in the network while a crypto coin serves merely as a store of value. When the EOS crypto started out as an ERC-20 token, it managed to raise $4 billion in a year-long ICO (initial coin offering), immediately creating a massive hype in the market. Although it has since gone mainnet, the EOS crypto remains a popular one. In the next section, we take a look at some of the reasons why.
The EOS Advantage
The EOS crypto offers a host of benefits and advantages for its users and we sum up the key ones among them in this section. They are as follows:
1. Fee elimination:
EOS seeks to entirely do away with the transaction fee. This low-cost approach is sure to drive up adoption. It is achieved by using a consensus protocol called the delegated proof of stake. The cost-effectiveness also becomes possible since it is multi-threaded and hence able to run on several core computers at once.
2. Role in Governance and Bandwidth Access:
Holding an EOS crypto token allows the owner to be eligible for participation in voting for on-chain governance. Naturally, this voting right is in proportion to the level of stake the person has in the chain. In addition, token owners can access an equivalent percentage of bandwidth. For example,if somebody own 1% of the EOS tokens, he or she becomes eligible to use nearly 1% of the chain’s entire bandwidth.
3. Scalability:
A driving factor behind the vision that led to the birth of EOS was to address the problem of scalability faced by major crypto players in the market, especially Bitcoin and Ethereum. It implements blockchain smart contracts to create a decentralized, scalable network that can host user applications.
Where to Buy EOS?
As its adoption rises, even its price is expected to. Hence it is highly likely that you might want to buy some EOS crypto tokens yourself. Some of the cryptocurrency exchanges that trade on it include Binance, Coinbase, Gemini and GDAX.
Merely buying from a trusted exchange is nowhere close to being enough. One must also take steps to secure crypto wallets to make sure the increasing number of cybercriminals do not find their way to your EOS cryptocurrency holdings.