Now we’re getting deeper into the rabbit hole. In the previous chapter we covered what a blockchain and cryptocurrency is. We also discovered that there’s thousands of blockchains and cryptocurrencies in existence today. This makes finding, or rather, choosing the best blockchain a not so easy task. It’s an important decision to make and one that shouldn’t be taken lightly. Any blockchain you choose will inevitably end up capturing your time and possibly funds if you choose to invest into it, so it’s imperative to make an educated decision.
EOSIO and EOS?
At this point you may be wondering what the difference is between EOSIO and EOS. Before we dive into each lets define, in simple terms, the difference between the two.
EOSIO is an open source blockchain software/protocol. It is publicly available for anyone to utilize as they see fit and create their own blockchains from it. Blockchain’s that stem from EOSIO will share the same core tech but quickly diverge as they develop, on top of it, their own features.
EOS is the first blockchain to utilize the EOSIO protocol. As such it’s the most recognized and widely supported EOSIO blockchain, it is commonly referred to as the EOS Mainnet.
EOS is also the name of the token which powers and runs on the EOS blockchain. To differentiate between EOS the blockchain and EOS the token, people often refer to them as ‘EOS Mainnet’ and ‘EOS Token’, respectively.
What is EOSIO?
EOSIO is an open source blockchain protocol designed specifically for use in the real world. It was developed by Block.one who ran the most successful ICO (initial coin offering) in history, raising an astonishing $4 billion. EOSIO is visionary in its approach to contribute to the mass adoption of blockchain. Its motto transcends beyond the traditional “build it and they will come” approach. See, the developers behind EOSIO understand that blockchain has many obstacles to overcome. There’s core tech issues, regulation and issues relating to the public trust of blockchain. EOSIO represents a collaborative approach to better tackle these problems. Many independent parties contribute to the development and upgrade of EOSIO.
The image of blockchain has been tarnished over the recent years because of bad actors within the industry. People expect such of the internet, but blockchain is meant to be a safer and more secure environment. And for Blockchain to gain massive adoption it will have to be better than the current internet. I believe it already is but the public is unaware of this, and that’s the point. People still need to be educated about Blockchain. But before that, there has to be a solid and secure structure capable of supporting a massive number of people all at once. EOSIO’s structure is reflective of this and many parties are working tirelessly to make this a reality for all of us.
This is a great question to ask! Why EOSIO, or any other blockchain protocol for that matter? Shouldn’t a single blockchain be enough? These are all reasonable points to raise, after all we do have only one internet, not multiple. If you’ve read the previous chapters you now have a sense as to why different blockchains are necessary. Many blockchains today serve different purposes, and some have better capabilities than others. EOSIO aims to be the blockchain protocol of choice for all industry use cases both private and public. In the future it is possible that all blockchains will run on a version of EOSIO.
A blockchain with bothersome limitations is like surfing the internet using a low quality computer with a bad connection. In our ‘Introduction to Blockchain and Cryptocurrency’ chapter we covered a period when such an issue occurred. But to better understand ‘why EOSIO?’, we’ll have to travel back a bit further than that. Back to when blockchain was still getting started and Bitcoin was the only chain on the block.
Way back in the early days of Bitcoin, a young man by the name Daniel Larimer quickly discovered that Bitcoin would face scaling issues in the not too distant future. He raised his concerns about this to the community, including Satoshi Nakamoto himself. Did anybody listen? No. In fact, Satoshi dismissed his concerns and told him: “If you don’t believe me or don’t get it, I don’t have time to try to convince you, sorry”. Words that would come back and surely haunt the Bitcoin community.
Fast-forward 7 years, and the entire blockchain space was sorry because Dan Larimer’s warnings materialized. In 2017-2018 the market fell 70% within just four months and has struggled to recover ever since. Bitcoin was now faced with the exact same issues Dan raised 7 years prior. Transaction costs were extremely high, the network slowed down to a halt and people simply could not use it anymore. Many people left blockchain vowing never to return and for good reason as some lost 70% or more of their life savings investing in it.
Daniel Larimer was already busy working on EOSIO during this time, alongside his colleague and Block.one CEO – Brendan Blumer. By June 2017 they released the project’s whitepaper and began their distribution of EOS tokens in their initial coin offering (ICO). The EOSIO open source software was officially released by Block.one on the 1st of June, 2018. Leaving it up to the community to organize themselves and launch the EOS blockchain on their own, which they did successfully on the 10th of June, 2018. The EOS Mainnet was born.
Since the release of EOSIO Block.one has delivered numerous performance and security upgrades to the software with the current version being EOSIO 1.8. To give you an idea of the rate of development since launch, the next version (EOSIO 2.0) will increase transaction speeds by an impressive 16x the speed of the original EOSIO 1.0. I think it’s safe to say that EOSIO is by far the most well positioned blockchain protocol and likely to be the first to achieve real world scalability.
The EOSIO protocol provides a decentralized structure for deploying smart contracts. These are contracts that self-execute once certain conditions have been met. For example, smart contracts are also responsible for reading credit card data. They verify whether there’s indeed a balance on the card, then upon ownership confirmation (pin) they transfer the right amount to the receiver. This process is quick and done automatically as soon as the card is swiped. Blockchain operations are also governed by such smart contracts which automate a lot of the processes involving transactions. This near instant automation has given rise to hundreds of decentralized applications (dApps).
A dApp is unique from a traditional app because it is decentralized and runs on a blockchain. Since they are hosted on decentralized blockchains it makes them harder to hack as there’s no single point of failure. DApps have many other advantages over centralized apps such as transparency and accountability. EOSIO has no fees for transacting, unlike most of its competitors. More on this in Chapter 4. This makes it affordable for users and incentivizes developers to deploy their dApps on it instead of on competitors’ blockchains. An app that is decentralized opens up a whole new world of possibilities for companies to align their own interests with those of the consumer, creating a more sustainable world for all.
An Operating System
EOSIO has been likened to an operating system (OS) because of the way it functions. In comparison to Microsoft’s Windows OS, EOSIO allows for different software and applications to run on top of it. Whilst also gaining from the benefits of being hosted on a blockchain. You log onto your account, check your favorite applications, write an email and soon forget you’re even using a single blockchain. That’s the beauty of EOSIO, everything seems seamless. You just log in once into your account/wallet and can hop onto your favorite applications, one after the other. Once you’re done for the day, you simply just log out.
Unlike Windows, this operating system is accessible on any device that has access to the internet. The EOSIO “operating system” also has much more to offer than your average OS. As a blockchain based operating system EOSIO affords you quick access to financial, shopping, communication, gaming applications and much more. The internet and the operating system have finally been merged to provide for an advanced digital experience.
What you’ll surely notice as well is that similar to a computer this operating system also has system requirements for operating. Each EOS account is allocated resources so they can be able to transact and be rendered operational on the blockchain. The more transactions an account does, the more resources it will need. Having resources ensures that these transactions are carried out efficiently and in a timely manner. Users can easily acquire more resources by staking their EOS tokens. These staked tokens belong to the user and can be reclaimed whenever they wish.
To compensate for a fee-less network, Block.one came up with a revolutionary solution. To design the blockchain to imitate an operating system in which the only requirement for use is to have sufficient resources.
You might be familiar with these resources from your own computer:
- CPU (Central Processing Unit) is like the brain of your account. It is responsible for processing and executing instructions that come from all the applications you interact with the EOS blockchain. Depending on how active your account is, you’ll need to have some EOS tokens allocated to CPU. When you create an EOS account it already has CPU allocated (0.1 EOS or so), enough for general usage. The heavier your use on the blockchain the more CPU you’d require. Again, transactions are free and any EOS staked on CPU can be unstaked and spent.
- NET (interNET Bandwidth) represents the data transfer rate on the EOS blockchain. It stores your transactions as they’re being transmitted on the blockchain.
- RAM (Random Access Memory) is the temporary storage of information on the EOS computer. This is where an accounts balance and keys are stored. Unlike ROM, RAM’s data can quickly be moved or changed making it ideal for ever changing information like balances, keys and smart contract states.
As EOSIO continues to scale users will be able to do more with less resources. DApps also have the option to cover all resources on behalf of their users. This allows for a completely seamless blockchain user experience, especially for new users. Your grandma will soon be able to use an EOSIO blockchain.
As we described it at the beginning of this chapter, EOSIO is an open source protocol publicly available for anyone to utilize. The first iteration of EOSIO was the blockchain referred to as EOS, but since then there’s been a handful of other blockchains which have launched utilizing EOSIO. Here at EOSWriter, we cover all EOSIO chains and have dedicated pages for each which you can access from the main menu drop down titled “Chains”. Below is a short description of each EOSIO chain along with official links.
Telos – Telos is a networked ecosystem enabling visionary leaders and communities to work together to build a new global economy. https://www.telosfoundation.io/
WAX – The safest and most convenient way to create, buy, sell, and trade virtual items – to anyone, anywhere in the world. https://wax.io/
BOS – The goal of BOS (Business Operating System) is to build an EOSIO ecosystem that supports more dApps and solve real-world problems using blockchain technology. https://boscore.io/en/
Worbli – WORBLI are on a mission to develop the world’s most cost-effective and developer-friendly consumer and enterprise blockchain platform. https://worbli.io
Lynx – A new blockchain designed for mass market applications. Leveraging the speed and scalability of EOS, LynxChain simplifies resource management and enables free account creation for decentralized apps. https://lynxwallet.io/lynxchain
Ultra – Ultra is bringing the blockchain revolution to the gaming industry and creating a fair ecosystem for the future of games distribution. https://ultra.io/
As more and more EOSIO chains arise over time I can’t help but notice its similarities to this evolving planet we inhabit. This is EOSIO’s greatest strength in my opinion; the ability to quickly evolve allows it to change and improve over time, learn from its surroundings, and adapt accordingly. This stands in stark contrast to the majority of current blockchain protocols in the blockchain space today.
Today EOSIO is an ecosystem consisting of many chains, companies, start-up projects, dApps and a dedicated community. Upon full completion of its development, if there is such a thing, EOSIO will host everything from healthcare, education, and banking services, to e-commerce, gaming applications, and virtual reality et cetera. This will go beyond the internet. EOSIO will be an entire digital galaxy with many communities and different worlds within it.
Having a great team coupled with the $4 Billion raised from the token distribution event, Block.one has the necessary arsenal to fully market EOSIO to the world. They’ve set up a venture capital arm EOSVC which is actively investing and supporting companies looking to utilize the EOSIO software and help grow the ecosystem. On top of this Block.one is also busy developing a social media platform called Voice, designed to disrupt Facebook and return value back to its users.
A lot is going on in the blockchain space but one thing we know for sure is that EOSIO is here for the long run and its future looks bright!
Disclaimer. EOSWriter does not endorse any content or product on this page. While we aim at providing you with all the important information we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.