Coin Review - EOS

What is it

EOS is a decentralised operating system and smart contracts chain built as a direct competitor to Ethereum with a few major differences: transactions per second (TPS), Delegated Proof of Stake (consensus algorithm) and on chain governance.

What problem is it solving

EOS allows for token holders to be in control of the platform. Token holders have corporate governance and voting abilities to decide on who they delegate master node status to and in turn how the platform will evolve over time. Should there be a scaling issue or debate, the token holders vote, as do the Block Producers (21 of them) and consensus wins. In theory, there will be no forking.

The platform has also been designed with longevity and scalability in mind, it’s fast, flexible and designed to allow for easy creation of applications.

Why do we like it

  • Built by Dan Larimer and Block.one

  • Alternative consensus algorithm mixes centralisation and decentralisation

  • Block Producers are democratically elected by the public

  • Parallel access means multiple things can be run concurrently

  • Fee-free transactions

Why do we not like it

  • Raised ~US$4Bn - which is an astounding amount of money for a company with no live product

  • Dan Larimer has a tendency to leave projects once they launch

  • Block.one will relinquish all decision rights once the blockchain has launch

  • Block Producers will become rich, powerful entities in-themselves

Final Verdict

EOS is one of the most interesting projects we’ve come across, it has made some significant decisions like conducting a 12-month ICO process and decision that complete decentralisation is not the best approach, but a hybrid between the two could work. The platform utilises a Proof-of-Stake algorithm meaning transaction speed has always been a key differentiator. EOS also have ~US$1Bn to spend on the new project to launch on the platform with no ICO - they will airdrop the tokens to EOS holders.

Disclaimer: Magnet Capital holds a position in EOS which can and will be increased/decreased as the project evolves. Magnet Capital does not accept any liability for any financial decisions made on the basis of the information provided. The above opinion does not constitute financial advice and should not be taken as such. Magnet Capital urges you to obtain professional advice before considering any investment decisions

Egor Sidelska