Introduction to EOS — The ‘8th largest’ cryptocurrency
The Ethereum blockchain is slow, and can only handle up to 15 transactions per second. Other than the scalability problem, the dApps made on Ethereum are very slow and users are required to pay the gas fees on every single transaction. This limits the possibilities one can achieve with decentralized applications (dApps), because no one wants to pay every single time while using the app.
Founded by Daniel Larimer and developed by a company called block.one headquartered in the US, EOS blockchain aims to solve these two fundamental problems faced by the Ethereum. It offers a very unique approach towards the usability of decentralized applications (dApps) using payment channels, and scalability through a unique consensus algorithm called the Delegated Proof of Stake or DPoS which we will discuss further in this article.
EOS Consensus Algorithm — DPoS
EOS is a programmable blockchain platform with a modified version of traditional PoS consensus algorithm, which is called a Delegated Proof of Stake, or DPoS. Unlike traditional PoS, DPoS has a network of pre-determined number of delegates to generate the blocks, verify the transactions and maintain consensus across the network.
As of now, there are 21 distributed delegates securing the EOS blockchain network. These delegates are usually selected by an independent voting mechanism, which is done by voters who hold the EOS tokens. Block time in the EOS blockchain is currently fixed at 1.5 seconds, and it can handle up to 3,000 transactions per second. Recently, EOS hit a peak of 3,097 transactions per second which is quite impressive.
How EOS is different than Ethereum?
Aside from its underlying protocol and consensus algorithm, EOS has a very different architecture for dApps. In Ethereum, anyone who is using the dApp will have to give the Ethereum gas fees for using the dApp. In EOS, the users can open an ‘account’ and based on the number of tokens in their account, they can be allocated some bandwidth. Using this allocated bandwidth, EOS users can send the transactions and use dApps absolutely free of cost. This reduces the hassle of paying every single time you are using a dApp.
EOS Virtual Machine
EOS uses a very optimized version of virtual machine to run decentralized applications (dApps). EOS also supports running the Ethereum Virtual Machine according to their whitepaper. Currently, the smart contract language that EOS Virtual Machine uses is C/C++ and can also run Web Assembly in some cases.