EOS is a public blockchain network developed by EOSIO and leverages a delegated proof of stake (DPoS) consensus mechanism for securing its platform. The EOS network is one of many networks created on the open-source software framework of the EOSIO blockchain platform.
EOS is the native asset of the EOS Public Network, used to conduct transactions within the blockchain. It also serves as the governance token of the ecosystem, giving token holders the power to vote for block producers who validate transactions on the network.
EOS offers a public, transparent, and decentralized platform to run dApps. Backed by Block.one, its flexibility and scalability make it an ideal ecosystem to develop decentralized applications with real-world commercial and enterprise applications.
As of July 2022, the EOS ecosystem is home to nearly 600 dApps across DeFi, NFT, GameFi, social, and more categories. Data on Defiprime reveals that the DeFi ecosystem on the EOS protocol has 13 decentralized finance applications operational.
What sets EOS apart from several of its peers is that it does not charge transaction fees. However, miners within the network receive newly minted EOS tokens.
EOS lets participants utilize the network’s resources based on the number of EOS tokens they stake. It employs an entirely stake-based system, ensuring users pay to access the resources using the EOS crypto they have staked.
Users get the tokens back once they stop accessing the network’s resources. This method lets all EOS token holders share the fees required to operate the blockchain, which keeps reducing as more EOS tokens are minted, and more participants join the network.
The EOS platform utilizes a delegated proof of stake (DPoS) consensus algorithm, so new tokens cannot be mined like in Bitcoin and Ethereum networks. However, block producers responsible for validating transactions receive payouts in newly created EOS tokens when new blocks are added to the blockchain.
Block.one, the company behind the development of the EOS network, is responsible for selecting which block producer gets to validate transactions and receive rewards. As a majority owner of EOS tokens, Block.one enjoys the maximum votes and can control the entry of new block producers in the network, bringing in some level of centralization in EOS operations.
The EOS token is the native cryptocurrency of the EOS and EOSIO blockchains and has several uses. Let’s take a look at some of them:
Staking EOS allows you to own a percentage of the network’s resources based on how big or small your stake is. Unlike other blockchains that let you rent network resources by paying transaction fees, the EOS staking model enables you to own a portion of the blockchain, eliminating the need for transaction fees.
Utilizing a DPoS consensus mechanism, the EOS network gives EOS token holders voting rights to select block producers. These block producers are responsible for validating transactions. As a result, the EOS token aids the decentralization process within the EOS ecosystem.
The EOS crypto is a great way to send and receive payments digitally. It lets you transfer payments anywhere in the world in a few seconds, making it a faster, more convenient, and cheaper payment method than bank transfer.
The EOS cryptocurrency is among the crypto market's top digital assets by market cap. It is a popular choice among crypto traders for buying, selling, and holding and enjoys high trading volume and liquidity on top crypto exchanges. Review the latest EOS price, market cap, 24-hour trading volume, and news before you buy or sell EOS.
You can earn rewards in EOS and generate passive income through staking tokens. You can stake EOS to run a block producer, which will fetch you the highest returns, or run a standby block producer, but both require a high number of tokens to be staked.
You can also stake EOS on DeFi platforms and exchanges which support this option. KuCoin offers a convenient and risk-free manner to earn passive income through your EOS holdings via the Crypto Lending feature. You can head to this section to lend liquidity in EOS to the platform and receive attractive returns over seven days, 14 days, or 28 days.
EOS has been a well-established blockchain platform in the market for several years, adding new features and supporting more applications. This makes the project an attractive investment to consider including in your portfolio.
Judging by its price history, the EOS price could head higher in the future amid the rising adoption of its ecosystem by dApps and enterprises. More innovation to differentiate its technology and make it superior to its competition could also support the value of EOS and drive it higher.
In addition, as one of the largest virtual assets by market cap, EOS price action is very sensitive to the overall market sentiment. A bullish mood among crypto investors could also see more buying action in the crypto and support the EOS price statistics in the future.
The EOS price fluctuates based on numerous factors, including fundamentals related to the blockchain, general market conditions, and investor sentiment towards digital assets. The value of EOS could trend higher due to the following factors:
1. A positive market sentiment which increases interest among investors in buying EOS and other cryptos.
2. Increased adoption of the EOS ecosystem by dApp developers and users.
3. Upgrades from the EOS developers that make the blockchain more efficient to use.
On the other hand, the price of EOS could trend lower amid factors such as:
1. Negative market sentiment toward cryptocurrencies driven by a risk-off mood in the global financial market.
2. Increased competition from newer blockchains that offer more attractive platforms for dApp developers and users.
The EOS blockchain technology leverages a delegated proof of stake mechanism for achieving consensus, which is far more energy-efficient than proof-of-work blockchains like Bitcoin and Ethereum. As a result, running dApps on the EOS blockchain consumes far less computing power and energy resources, making it a greener blockchain than Ethereum.
According to analysis, EOS is 66,454 times more energy-efficient than Bitcoin and 17,236 times more energy-efficient than the Ethereum blockchain. The EOS mainnet consumes just over 630 MWh of energy and emits only 281 tons of CO2 annually, less than 0.01% of Bitcoin’s emissions.
Another exciting factor is EOS’s commitment to sustainability, which makes it one of the world’s greenest and environmentally responsible blockchain ecosystems. The network hosts several projects that help it earn carbon credits to help it offset the entire EOS carbon footprint for a year.
Block.one developed the EOSIO platform based on a whitepaper published in 2017. The first testnet of EOSIO, Dawn 1.0, was launched on 3 September 2017, followed by the second testnet, Dawn 2.0, released on 4 December 2017.
Two more testnet versions, Dawn 3.0 and Dawn 4.0, were released on 25 January 2018 and 7 May 2018, respectively. EOSIO 1.0 mainnet launch took place on 1 June 2018. Block.one distributed one billion EOS tokens as ERC-20 tokens for the initial coin offering (ICO).
The token sale raised more than $4 billion to develop the EOSIO platform during its ICO. However, Block.one ran into regulatory challenges with the US SEC over the unregistered ICO and was later fined $24 million in September 2019.
EOSIO v2.0 went live in October 2019, followed by a decision by the block producers to reduce the EOS token inflation rate from 5% to 1% in February 2020. This led to a token burning that destroyed over 34 million EOS coins from the circulating supply.
You can stake EOS via supported DeFi platforms or cryptocurrency exchanges. You can also stake the EOS crypto to become a block producer or participate in the governance of the EOS blockchain ecosystem.
Here’s how to delegate your stake to a block producer via REX:
1. Create an account with REX - the official wallet of the EOS network. The Resource Engine on EOS is a marketplace where you can access network resources.
2. Add your REX wallet details to the EOS Authority interface.
3. Head to KuCoin or any other exchange where EOS is listed to buy the cryptocurrency.
4. Withdraw the EOS tokens you have bought from KuCoin or other platforms into your REX wallet.
5. Click on the Lend option on your REX account and stake to choose a block producer on the network.
6. Please enter the number of EOS tokens you wish to stake, verify the transaction details, and confirm.
7. Sit back and receive EOS tokens as rewards for your staking.