Summary
The idea of having everything on a blockchain doesn't seem too crazy anymore. Sociability is very important when we are trying to run multiple major industries all in one blockchain. As Daniel Larimer states on his presentation, there are approximately 20,000 transactions required per second for visa and mastercard without mentioning all the other payment systems out there, facebook has 52,000 likes per second without including all the posts and other actions that users take, trading in the financial industry is 100,000 transactions per second. These are just a few of the things that we have mentioned and there are many other things that could run on a blockchain. As you can imagine by now, today's industry requires millions if not billions of operations per second. With all that said, according to Larimer's presentation, bitcoin is capable of 3 transactions per second and ethereum is capable of 30 transactions per second. "There is a huge gap of what we can do and where we need to be", Daniel Larimer. Needless to say, EOS's goal is just that... EOS will be capable of running millions of operations/transactions per second.
Introduction to EOS
For those of you that are not familiar with EOS, I would like to briefly mention some important key points. The Chief Technology Officer of EOS is Daniel Larimer. Dan is also the co-founded and Chief Technology Officer of Steemit. He is also the founder of Bitshares (a decentralized exchange for cryptocurrency). Dan is a visionary programmer that has extensive experience in the blockchain world. With that said, the developer team of EOS is in good hands.
The EOS platform will be the first decentralized blockchain operating system where just like Ethereum other decentralized applications will be built on it but the difference will be that everything that is built on EOS will be parallel which will increase it's scalability to potentially running millions of transactions per second compared to only 30. To explain, Dan states that applications will have their own private database that will be done with parallel processing which means the nodes can run only the applications that you need and will not be needed to run all the applications in the entire network.
Furthermore, Larimer states that with delegated proof of stake the block producers will be elected to make decisions for the network and the block producers will decide which transactions will be included by censoring transactions and freezing broken accounts which means that we don't have to hard fork the entire network to fix a bug in one application. EOS can also support many different programming languages and not just one language like Ethereum (Solidty) and Stratis (C#). With that said, companies will be able to write their smart contracts in a language that they feel comfortable with and use the smart contract on the EOS network to enforce it.
Most importantly, unlike other platforms, EOS will not have fees. According to Daniel Larimer, "when you hold the token and put it in a staking contract you can access a percentage of the available resources proportional to the stake you have, so if you have 1 percent of the EOS you can use 1 percent of the total storage capacity of the entire network."
Constitution
The EOS blockchain will have it's own constitution. Here is @dantheman (Daniel Larimer) explaining the EOS constitution in greater detail: https://steemit.com/eos/@dantheman/what-could-a-blockchain-constitution-look-like
ERS-20 Token (Ethereum Request for Comments)
Currently EOS is still under development and those that are investing in it are buying ERS-20 tokens which are on the Ethereum blockchain and are considered smart contracts. ERS-20 will not be the token that will be used later on the EOS network once it is launched. As mentioned above, EOS will be it's own blockchain and it will compete with Ethereum.
Is EOS Token a Scam or Not?
"The EOS Tokens do not have any rights, uses, purpose, attributes, functionalities or features, express or implied, including, without limitation, any uses, purpose, attributes, functionalities or features on the EOS Platform"(Source Credit).
" It was decided that U.S. citizens, residents and entities should be excluded from purchasing EOS Tokens in the token distribution because of some of the logistical challenges associated with differing regulations in the many states of the United States of America. block.one does not believe that the distribution of EOS Tokens or the EOS Tokens themselves are securities, commodities, swaps on either securities or commodities, or similar financial instruments. The EOS Tokens are not designed for investment or speculative purposes and should not be considered as a type of investment. Nevertheless, U.S. citizens, residents and entities should not purchase or attempt to purchase EOS Tokens"(Source Credit).
Also, the company has been registered in the The Cayman Islands. With all that said, to be objective, you have to do your own research and anything that you read here is not a financial advice and is simply my research. In my opinion, this seems to me like the team members of EOS are just trying to protect and cover them selves just like most major corporations. The Cayman Islands are just a way to reduce tax liability while while all the terms and agreement are a way to avoid future lawsuits. Now a days if you pay attention, what ever you buy or who who ever you work for, most of the time there is a huge section with a lot of pages where you would have terms of agreements. If you read every little detail you will realize that it is not much different. Considering that EOS team member's goals are huge and they have no choice but to do what they are doing in order to be scalable.
The technology is certainly promising but it clearly has major risks. I am curious to what will happen in the future and I hope to continue reading and researching this technology and I also encourage you all to check it out as well. If the team succeeds this could definitely be revolutionary.
EOS Consensus Presentation May 2017
