EOS.IO is a blockchain protocol powered by the native cryptocurrency EOS. The protocol emulates most of the attributes of a real computer including hardware (CPU(s) & GPU(s) for processing, local/RAM memory, hard-disk storage) with the computing resources distributed equally among EOS cryptocurrency holders. EOS.IO operates as a smart contract platform and decentralized operating system intended for the deployment of industrial-scale decentralized applications through a decentralized autonomous corporation model. The smart contract platform claims to eliminate transaction fees and also conduct millions of transactions per second.
Based on a white paper published in 2017, the EOSI.O platform was developed by the private company block.one and released as open-source software on June 1, 2018. In order to ensure widespread distribution of the native cryptocurrency at the launch of the blockchain, one billion tokens were distributed as ERC-20 tokens by block.one. This provided the distribution to allow anyone to launch the EOS blockchain once the software was released. The CEO of block.one, Brendan Blumer, announced that block.one would support the EOS.IO blockchain with over one billion USD in funding from the token sale and ultimately block.one raised over four billion USD to support the blockchain during the Initial Coin Offering (ICO) period.
The original test net, Dawn 1.0, was released on September 3, 2017, with test net versions Dawn 2.0 released on December 4, 2017, Dawn 3.0 on January 25, 2018, and Dawn 4.0 on May 7, 2018.
EOS.IO’s Dawn 1.0 was launched on the EOS.IO mainnet on June 1, 2018, and currently operating under version 1.1.4.
The aim of the platform is to provide decentralized application hosting, smart contract capability and decentralized storage of enterprise solutions that solve the scalability issues of blockchains like Bitcoin and Ethereum, as well as eliminating all fees for users. EOS.IO accomplishes this by being both multi-threaded (able to run on multiple computer cores) as well as using delegated proof-of-stake for its consensus protocol. It aims to be the first decentralized operating system (EOS.IO) that provides a development environment for decentralized applications like Steemit, a social network with monetary incentives and BitShares, a decentralized cryptocurrency exchange (DEX).
The main native token, EOS, is a utility token that provides both bandwidth and storage on the blockchain, in proportion to the total stake (owning 1% of EOS tokens allows for usage of up to 1% of the total available bandwidth). EOS tokens also allow the owner to cast votes and participate in the on-chain governance of the blockchain, again in proportion to the owner’s stake. The EOS.IO platform will vote for 21 block producers during its launch, who will generate and validate blocks within a 500 ms block time. General purpose and smart contract language to build upon the EOS platform will be WebAssembly (Rust, C, C++), a portable stack machine that is developed at the World Wide Web Consortium (W3C).
The EOSIO software permits all accounts to be referenced by a unique human readable name of up to 12 characters in length. The name is chosen by the creator of the account. The account creator must reserve the RAM required to store the new account until the new account stakes tokens to reserve its own RAM.
EOS.IO adopts a free-market approach to allocating scarce resources to their highest purpose. To facilitate this market, the eos.io system contract allows users to buy RAM from the system and sell RAM back to the system in exchange for the blockchains native tokens (e.g EOS). This provides liquidity in the RAM market while facilitating price discovery. The less unallocated RAM available to the market maker the higher the market maker prices the remaining RAM. The algorithm used for this market maker is known as a Bancor Relay. A Bancor Relay does not set the price of RAM but rather offers to buy and sell at previously established market rates. Anytime the current market rate is different than the current price offered by the Bancor Relay, traders will buy or sell RAM accordingly, reducing the market determined price gap.
EOS Resource Renting & Rent Distribution
EOS Resource Renting and Rent Distribution is a proposed solution for lowering the capital costs of using network and CPU resources on EOSIO based blockchains.
EOS.IO Storage is a proposed decentralized file system designed to give everyone the ability to permanently store and host files accessible by any web browser. Unlike some other proposed alternatives, there would be no upfront fee or ongoing charge for storage or bandwidth on EOS.IO Storage aside from a completely refundable deposit. Users must hold tokens while they need storage and bandwidth and may sell tokens when storage and bandwidth is no longer required. Built on the InterPlanetary File System (IPFS) and the EOS.IO software, EOS.IO Storage will be a service provided by block producers for those who hold tokens on a blockchain that adopts the EOS.IO software. The block producers would be incentivized to replicate and host these files, allowing anyone with an Internet browser to access them. With EOS.IO Storage block producers could provide high bandwidth serving of videos, music, images and for applications like Steemit and compete with services such as Amazon’s AWS while utilizing an ownership, rather than subscription, model.
block.one, EOSIO Ecosystem and Everipedia
block.one is a company registered in the Cayman Islands, which began offering EOS tokens in June 2017 to the public, raising over $4 billion (a record for an ICO). Daniel Larimeris currently the Chief Technology Officer of block.one, notable for his role in building Bitshares, a decentralized exchange, building Steemit, a decentralized social media platform, developing delegated proof-of-stake and proposing the idea of a decentralized autonomous corporation.
On December 6, 2017, Everipedia, a for-profit, wiki-based online encyclopedia, announced plans using EOS blockchain technology and work on an airdrop of a cryptocurrency called IQ to encourage generating information. The IQ tokens are intended to be exchangeable for Bitcoin. One of the goals of the company is to stop certain countries from blocking the content, by the integration of the blockchain model. Once Everipedia is decentralized and hosted on the EOS.IO platform, countries such as Turkey and Iran that block Wikipedia will no longer be able to block it, via Everipedia’s fork. Mike Novogratz, CEO of Galaxy Investment LP, a cryptocurrency investment firm, and block.one led a group of institutions that invested $30 million in Everipedia on February 8, 2018. Novogratz also funds EOSIO Ecosystem, a $325-million joint venture between his Galaxy Digital LP and block.one.
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