What is EOS? Is it worth investing in EOS? Learn all about this cryptocurrency!

What is EOS? EOS is a blockchain platform that allows for the development of smart contracts in your system. Companies and individuals can use it to create programs and applications of the most varied types and carry out transactions without third-party intervention.

The platform has a token, which is also called EOS. This coin was launched in 2017 and it quickly became popular in the crypto world. Currently, it is the 6th largest cryptocurrency in terms of market capitalization, with an estimated value of $4,800 million USD.

In this article, the Cripto InterCambio blog will further explain what EOS is, its main features and investment outlook.

What is EOS – Main Features

Blockchain platform and smart contracts on EOS

Any person or company can create their own application on the EOS network and make it available on the Internet – these are decentralized applications (dApps). A dApp can benefit from EOS’ blockchain technology, which allows anonymous, fast, and secure transactions without the need of a third party.

This is an example of how dApps work: Imagine an online sports betting site. Traditionally, this site must be associated with credit card companies or payment platforms to receive funds. However, if transactions are carried out on the EOS platform, and made with this cryptocurrency, from the user to the website, they will not need the mediation of third party companies.

This is related to the so-called smart contracts, a kind of “virtual contract” signed between two parties, which is structured and executed by a computer. They can establish rules and conditions for payment methods, giving the flexibility of using various tools. 

On this dApps site, you can see the decentralized applications that already exist on the EOS network. Among them are decentralized exchanges, various types of virtual games and even other cryptocurrencies.

EOS scalability

Scalability is one of the main obstacles to the widespread adoption of cryptocurrencies and is one of the main differences the EOS platform has to offer, especially in relation to Bitcoin or Ethereum technologies. It is not uncommon for transactions on these networks to take time, and when many users access the system it gets congested.

This is due to the consensus mechanism that these cryptos use to validate transactions. Bitcoin and Ethereum use a Proof of Work (PoW) system. For example, in the case of Bitcoin a full consensus between Nodes is required for transactions to be validated, which ultimately slows down the system.

EOS uses a system called Delegated Proof of Stake (DPoS). In a common Proof of Stake system, the more coins a holder has, the more blocks he will be able to validate. In DPoS, validators are chosen by vote. This further speeds up the process by encouraging loyal validators to validate even more and act appropriately.

EOS’ goal is to be able to validate hundreds of thousands of transactions per second with this algorithm.

Learn more about consensus mechanisms in our article: Proof of Stake and Proof of Work.

What is EOS? Is it worth investing in EOS?

Price History

  • EOS started to circulate in 2017. In its first months, its value per unit fell from about $5 to less than $1 per unit. It was trading for a few cents.
  • However, during altseason, this altcoin consolidated among the big cryptocurrencies. In March 2018, it reached its highest historical value: just over $19 per unit.
  • After that, during the long bear market of the altcoins, this cryptocurrency lost value but did not return to the previous levels. In December 2018, it reached the minimum price of $1.80.
  • Since then, it has gained in value. It reached a maximum of $8 in May 2019 during the small bubble last year.
  • It has rapidly been gaining in value in 2020. Its price jumped from $2.25 at the beginning of January to over $5 per unit in February 2020.

Invest in EOS in 2020

It seems that 2020 will be a decisive year for the crypto world. Recently, large investors, such as banks and investment companies, have entered this market. This is in addition to the consolidation of large exchanges. Blockchain is becoming popular and the trend is that more people are investing in these technologies. There are many elements that could predict a possible sharp price increase, for instance, the Bitcoin halving in March 2020.

EOS has the potential to stand out among other cryptocurrencies. Institutional investors find its promise of scalability and its strong project linking blockchain with smart contracts attractive.

EOS looks promising.

Medium and long term investment in EOS

In the medium and long term, the sustainable growth of this currency value will depend on two factors:

  • Its blockchain service capacity of attracting more companies and users;
  • The verification of its scalability in a real context.

For now, its platform’s dApps are relatively small. Just like the dApps found on competing platforms (such as Ethereum), most of them only have a few thousand users. These applications will need to become popular in order for EOS to increase its value in the medium and long term.

In addition, relatively few transactions are carried out on the EOS platform. The scalability will need to be verified in real contexts to build up trust in its investors.

Conclusion – EOS, a commitment to blockchain technology

We hope to have fully answered what EOS is in this article. This currency growth perspective depends on its blockchain and dApps ability to attract new projects, customers, and users. Without a doubt, this is an ambitious project and its great potential for scalability is proof of that. Will EOS continue its ascension path? 

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