THE MISSING ELEMENT TO PUSH DAPPS INTO THE MAINSTREAM MARKET
Currently, one of the main barriers to adoption in the blockchain industry is scalability. Although innovative market leaders such as Ethereum have allowed for the creation of decentralised applications that utilise smart contracts, their usability on a large scale is severely limited. This is the result of the Proof of Work (PoW) model, where all nodes within the network have to agree on a single transaction in order for it to be added to the Blockchain.
EOS aims to solve this problem by creating a unique Proof of Stake (PoS) model which should scale to handle millions of transactions per second. EOS’s focus on scalability stems from the belief that in order for the space to receive mainstream adoption, robust enterprise applications need to be able to function as they do in our current world. Without such an ability, DApps use cases can be viewed as limited and almost novel. However, as with any groundbreaking technology, finding ways to solve fundamental problems takes time, EOS focus on this key issue could set them apart from the multitude of platforms currently in the market.
Additionally, unlike many other platforms, EOS lets users utilise the DApps created on their Blockchain without needing to spend unnecessary funds on transaction fees. This is achieved by allowing users to spend transactions proportionally to the amount of EOS they hold, a feature built into the Proof of Stake (PoS) consensus algorithm. Ultimately, this permits users to use applications without the need for spending tokens unless they are purchasing a product or service, as familiar in the traditional App market. This link between the current status quo and what the future holds could provide Blockchain technology with the bridge it needs to attract the masses.
Additionally, EOS’s PoS model avoids the need for cumbersome widespread consensus to be achieved in order for upgrades or edits to the main system or DApps themselves, as seen in the PoW model. Some may argue that this is a key feature in the security of a distributed network, despite this, however, the current PoW algorithm suffers from slow bureaucratic proceedings.
Innovations such as these are rare and although PoS may not be the final solution, constantly progressing towards technological perfection is certainly admirable. For the proposed reasons, EOS appears to have a keen vision for what the future Blockchain space may hold, and being a market leader in the unique PoS model provides them with a distinct market advantage. With the launch of their independent Blockchain already in use, it will be interesting to see the progression of projects developed on the EOS platform over the coming year. Certainly, one not to miss before it goes mainstream.
- CTO Dan Larimer has a proven track record with several successful projects under his belt including Steemit (decentralised social network) and Bitshares (decentralised exchange)
- EOS’s ICO raised an outstanding 4 Billion USD, providing a substantial war chest to deal with the turbulent cryptocurrency market and provide funding for the ecosystem
- Partnership with Bitfinex, one of the world’s most liquid cryptocurrency exchanges, to build a decentralised exchange based on the EOS Blockchain
- CEO Brendan Blumer has promised to allocate 1 Billion USD to fund projects built on the EOS platform, allowing for the industry grade DApps they wish to build to be realised
- Although CEO Brendan Blumer has created several successful companies including II5 (tech) and okay.com (real estate), he has no experience within the Blockchain space
- The Blockchain platform sector is the most competitive within the market, including notable figures such as Ethereum, NEO, Cardano etc. Although, EOS definitely has a unique selling point with its innovative PoS consensus algorithm
- Certain individuals oppose the PoS model entirely, as they believe it may give substantial power to EOS or turn the idea of a decentralised consensus into a political process, this viewpoint remains to be seen
EOS could just be what Blockchain needs to push DApps into the mainstream market. Boasting a million transactions per second, accompanied by zero fees, this platform should be both scalable and usable for the masses.
Questions of whether the PoS consensus algorithm is secure enough to be immutably trusted certainly remains to be seen, but without such innovations and a real-world testnet, no one will ever know, and large-scale adoption would likely remain stagnant. Having the guts to be the first to pursue such an end goal shows strength in vision.
Thus, if EOS manage to prove their critics wrong, they could become the market leader in the platform ecosystem. The coming year will surely determine this fate, so be sure to keep an eye on such an opportunity.
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