EOS is a blockchain-based decentralized platform that enables the development, hosting, and execution of decentralized applications or dApps. It casts itself as the most powerful infrastructure for dApps development. Its blockchain network has also been used to enhance cross-border payments on eliminating transaction fees, conversely enabling millions of transactions per second.
EOS blockchain project came into being in 2017 as part of a white paper published by Block.one. The private company released the project as open-source software in 2018. At inception, one billion EOS tokens were released into the market.
EOS seeks to enable the processing of millions of transactions per second. Powered by blockchain technology, the open-source platform also aims to enable smart contracts that allow developers to release dApps.
How EOS Works
EOS blockchain relies on the Delegated Proof-of-Stake to authorize transactions on the network. The consensus mechanism eliminates Proof-of-Work mechanism drawbacks that include slow, expensive, and bad environment.
Therefore, a Proof of stake mechanism creates a cheap, fast, and environmentally friendly transactions. Each transaction on the network takes a mere 3 seconds to go through, thus the reason EOS processes millions of transactions.
In the EOS network, people are paid to verify transactions. The strength of one’s vote is based on the number of EOS tokens one has. The more EOS tokens one, the more power to approve transactions and get paid for the same.
EOS token holder plays a pivotal role in keeping the EOS network secure given the financial benefit that comes with the same. Anyone who fails to play their role in securing the network can be voted out of the network, thus giving backup witnesses a chance.
EOS is the native token that powers the EOS blockchain. It operates as any other cryptocurrency whereby people send, hold, and receive funds between wallets. Therefore, it is an excellent payment system that enables the transfer of millions worldwide.
EOS coins accord owner’s ownership of the network. For instance, anyone who owns 1% of the coins would essentially own 1% of the network, according to them, 1% computing power to process transactions on the network.
What affects EOS Price?
EOS is one of the biggest cryptocurrency ranked as the 12th largest by market cap. The cryptocurrency price fluctuates in response to a number of factors. Technology advancement that allows EOS to enhance the development of dApps strengthens EOS sentiments in the market, conversely sending its price higher.
Similarly, the ability to enable fast and cheap transactions over blockchain also strengthens EOS sentiments in the market, conversely influencing its price positively. Media hype on why EOS is ideal for smart contract development and for processing transactions continues to influence the crypto price.
EOS is also susceptible to regulatory pressures that curtail the adoption and use of cryptocurrency. Stringent regulations that stifle the use of cryptocurrencies impact EOS price negatively. Friendly regulations that enhance the use of cryptocurrencies in the mainstream financial sector go a long way in strengthening cryptos sentiments conversely boosting valuations