Cryptocurrency

EOS: The State of Current Technology

If a project’s model should aim at being better than existing ones, one should look into it, research, analyse, predict and support. Now, there is the hope of having access to faster, easier and cheaper transactions on the blockchain for it’s users, with the invention of the EOS project. EOS projects aims at easy development of decentralized Apps(DApps), similar to web based and mobile applications. It supports and provides functionalities that allows individuals and businesses to create blockchain based apps that has  operating system-like set of services that DApps can make use of, in areas like authentication, secured entry, permissions, data history, use management, communications between DApps and internet. Unlike the Ethereum platform which only facilitates Decentralized Applications, EOS platform solves the problem of speed,scalability, usability and flexibility on the blockchain as well as facilitating DApps supported by smart contracts.

The EOS token (EOS) allows ownership on the network. It also operates as any other crypto for the function of sending,holding or recovery between wallets.

EOS can be traded paired with ETH, USDT, BTC, HT on huobi.

Huobi Talk recently held a panel discussion on the EOS technology and the news surrounding RAM trading. Updated technologies on the platform are Scholar Testnet, where the BIOS BOOT process using shell scripts and issuing tokens, is practiced. Another is voting Simulation for voting process. Testnet Tools have been released on github which includes web interface. Also, a block explorer which shows each transaction and Jungle Testnet which maintains and organises the network daily. There is also Hack Till Dawn, a global online hackathon organized by the community.

There are various Consensus protocols but worthy to note for the sake of this discussion are Proof of Work(PoW), Proof of Stake(PoS) and Delegated Proof of Stake(DPoS). PoW entails a lot of computational energy, processing power, high electricity consumption rate and more. For example, a miner hashes until he gets the stipulated number of nonce to create the block, whereas, its only the first miner to get the correct nonce that wins the block production. For PoS, a miner is required to have a large amount of crypto. Here, the probability of a miner creating a new block is determined by the percentage of crypto he owns. Thus, anyone can become a miner provided he has substantial amount of crypto. DPoS is the consensus mechanism used by EOS, DPoS which is built on the original PoS is democratic in nature, as it is a system whereby users of the network vote or delegates witnesses to serve on the panel. The witness panel determines the witness to confirm blocks, erring witnesses can be voted out, creating room for checks and balances. This mechanism is good as it solves the issues of influence interference, low transaction speed and scalability, high costs, computational effort and stress. It also removes the problems of attacks on the network. Mining concept of EOS is technically based on Block Producers who create the needed block and gets rewarded.

RAM is used by developers to store the  data used in the production of DApps. Hence, it is the general memory database on the system which is also possibly used for new accounts creation by users. EOS is an operating system which allocates CPUs and RAMs. RAM is the valuable resource on EOS. A minimum of 4 kilobytes is required to open an account on EOS.

Now, EOS is said to be powered by approximately 21 block providers(Bps) who puts resources like RAM together into the system and also sets prices for it. However, the servers used by these BPs are powerful and maintained by cloud service providers like Amazon. With this, a secondary market has been created, now, RAM is seen as an Asset and has now become expensive. Developers will get it at an expensive rate, the whole aim of EOS in creating a cheaper ecosystem is substantially erased and the whole platform gets controversial. Effects of expensive RAMs both on DApps development and general effect is not far fetched. For instance, a person who wants to use EOS platform has to purchase RAM somewhere which is still relatively cheap for users but way expensive for applications developers for users, with the price hike, developers finds it hard to purchase and at the end users have less reason to use it. Decentralized Apps can no longer be achieved. The speculations on the price of RAM was seen when someone posted on Reddit that he sees RAM as the real token of EOS, this and many more controversies are likely to rise.

Just as the EOS CTO has said, I think a new team should be formed to create another market approach to the current Bancor Algorithm, this should help the reduction in the allocated RAM leading to decrease in price, hence, RAM could be bought and sold but can’t be exchanged. Also, rehauling the project’s entire constitution should be pursued, the governance mechanism of the project should experience immediate restructuring. For the BPs, how about staking their tokens in a vote to decide increase in total RAM supply, and BPs should publicly publish the metric to which they will adhere to. Also, for now, the idea of running EOS as a decentralized entity should be considered.

Since Daniel said they will reconstruct the governance system, my fears are that it might not be possible considering BPs who are out to make money from the events since such decisions can’t be made without their approval. For situations like this that are already wide spread, a lot of teamwork, publicity, plea and intellectually practicable solutions are needed, if these are done, maybe it will be solved.


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