EOSIO & EOS: Project Background, Economic Model, and Ecosystem Features
A backlog is one of the worst things that may happen to a blockchain platform since it can cause its performance to decline partially or completely. Read about how block.one’s EOSIO (EOS) can prevent backlogs.
Summary
The EOSIO blockchain project and its public implementations, including the EOS public blockchain and its native coin (EOS), have gained traction since its inception in 2017. EOSIO has successfully established itself as a leader in the blockchain space while facing multiple competitors and a number of hurdles.
The cryptoeconomic and network usage models of the protocol complement one another and contribute to the EOSIO network’s general usability, scalability, and adaptability.
Contents
ICO Launch and EOS Developments
The EOSIO whitepaper was first published in 2017 and described what would become a groundbreaking blockchain solution.
Block.one’s Initial Coin Offering (ICO) raised a record-breaking $4 billion in the spring of 2018. Following this incredibly successful funding round, Block.one CEO Brendan Blumer and CTO Dan Larimer continued to pave the road for the EOSIO whitepaper’s vision to become a reality.
A snapshot of the ERC-20 token sale was captured and open-sourced to give a launchpad for any EOSIO-based network to use and be decentralized immediately away, increasing the project’s network effect.
Block makers used the snapshot of accounts to create what is currently known as EOS in June 2018.
Block.one is a modest but substantial EOS token holder, and it formed a Public Blockchain Interaction team in 2020 to expand its engagement with the EOS community and advocate its interests as an EOS and other public digital asset token holder.
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In 2020, Block.one began voting for block producers and released voting criteria for block producers who wanted to receive Block.one’s support. The EOS ecosystem’s functionality is also dependent on the management of network resources.
By balancing the demand for bandwidth with unused supply, Block.one has devised a new resource allocation model that will improve network efficiencies and operations.
EOSIO Evolution
Dawn 1.0, EOSIO’s first testnet, went live on September 3, 2017, and the project went on to release four more versions of Dawn before launching EOSIO 1.0 on June 1, 2018. The firm debuted EOSIO 2.0 on January 10, 2020.
Main Features of the EOSIO Blockchain Ecosystem
The EOSIO blockchain platform offers a number of technical features that contribute to its flexibility, power, and ease of use:
- WebAssembly-Based C++ Development
- Programmable Governance and Economics
- Advanced Staking Mechanism
- Business Model Adaptability
- Faster Confirmations, High Throughput, and Low Latency
- Comprehensive Permission Schema
- Full Network Upgradability
- Protocol Resource-Efficiency
EOSIO is a WebAssembly (WASM) C++ development platform, which means smart contracts and interactions with the EOS VM and the EOSIO ecosystem are built using a simple yet powerful programming language.
The governance and cryptoeconomic architecture used by EOSIO and EOSIO-based blockchain systems are programmable, which means that coin resource allocation and governance rules may be changed with minimal effort.
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Users can stake EOS coins on the EOSIO platform via the Cleos Command Line Interface (CLI), the RPC API, or an application that accesses the CPU and NET of the platform (network bandwidth).
When a user stakes through the CPU and NET of the platform, they receive rewards proportional to the number of EOS coins staked by all other users in the network.
Block producers enforce EOSIO’s computational resource capacity, and EOSIO has established a method in which decentralized applications created on the network don’t have to force their consumers to pay for the use of the blockchain network as a whole.
To put it another way, software engineers working on EOSIO can avoid charging for the blockchain network as a service by offering free overall network services to their users and monetizing through a “sender pays” model.
The network itself is free from the user’s perspective (only send-transactions themselves actually cost money). This results in a system that does not limit or hinder firms from deciding how to monetize their products.
Applications built on EOSIO can also use a “freemium” model, which means that users can get basic system resources without paying, but can pay for more advanced features.
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The EOSIO consensus mechanism uses Delegated Proof-of-Stake (DPoS) to achieve extraordinarily high throughput. Unlike a traditional Proof-of-Stake system, this one does not require the network’s nodes to compete for validating new blocks before achieving transaction finality.
This means that the blockchain delivers consistently faster transaction confirmations with lower latency.
The EOSIO protocol includes a robust authorization structure that allows the platform to be used in a wide range of scenarios. A developer, for example, can construct a bespoke permission structure to protect a smart contract’s specific functionality.
The authority needed to change a smart contract can also be distributed across multiple accounts with different levels of authorization.
Upgradeable applications can be launched on any EOSIO-based blockchain. This is important because it lets developers make code changes, add features, and change application logic as long as they have access. Iterating on an application allows software developers to avoid becoming tied to certain development decisions.
On the other hand, immutable smart contracts can be deployed on any EOSIO-based blockchain, ensuring that the smart contract’s original design and intent are not altered.
Furthermore, the DPoS consensus algorithm optimizes the network’s efficiency, allowing EOSIO to consume far less energy than conventional consensus mechanisms. Increases in energy efficiency like this are very essential in the cryptocurrency field.
The Proof-of-Work consensus mechanism on the Bitcoin network, for example, consumes roughly the same amount of energy per year as the Czech Republic’s entire infrastructure (which supports a population of 11 million). Reducing the cost of bitcoin energy has ethical, financial, and environmental benefits.
EOSIO’s primary features are diverse, allowing developers to make use of its flexibility and programmability to satisfy the needs of their applications while decreasing their environmental footprint.
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