EOS is being called by some a replacement for Ethereum, which is a huge claim to make considering Ethereum is the worlds second largest cryptocurrency and one of the first to implement smart-contracts.
One of the many things that make EOS token unique is the way they raised money. Traditionally when a company or person had an idea, they had to do a series A round of investment. Which meant some rich, accredited investors got together, put in some money and then the team went to work to develop their product or service. When the product was launched, it became a company and then issued shares which the public could buy.
EOS Token Initial Coin Offering Investment Structure
Instead of doing this, EOS token has gone directly to the public with their initial coin offering. The way they did this is by offering people an Ethereum, ERC-20 token. If you’d like to be a part of the EOS project, you need to buy this ERC-20 token which is actually part of the Ethereum Network.
That’s causing a lot of confusion for some people because the token you buy on the Ethereum network is not the token that you’ll be using on the EOS network once it’s launched. EOS is going to be its own blockchain and it’s actually going to complete with Ethereum.
One of the things that make EOS token so different from Ethereum is the language in which the smart-contracts are written. Ethereum uses its own language which requires a steep learning curve for most people to adapt. Whereas the idea behind EOS is it’ll be able to accept all of the common programming languages.
So when companies are interested in building decentralized applications or using the blockchain technology, they’ll be able to write contracts in a language they feel comfortable with. Then, use a smart contact on the EOS token network to enforce it. Rather than for example building an application or having an existing application, then having to import that to the solidity language that Ethereum uses. EOS has a lot of credibilities because one of the founders is Dan Larimer and he was the same person that created BitShares and Steemit. Both of these ideas have been revolutionary blockchain technologies.
Steemit is a social network that’s very similar to Facebook, only instead of the whole company and the whole idea being based on an advertising model like Facebook, in Steemit, it’s the content creators that get paid. So because it’s a distributed network and because it’s decentralized, it doesn’t cost anything to use and if you’re a contributor, let’s say you write great content, you’re given a percentage of the value of the network.
So if I write a fantastic article online, and millions of people read it and it accounts for 2% of the Steemit network traffic, then I’m actually being paid proportionately that day to the traffic I was able to generate. That is a huge difference over Facebook which generates all of its money from advertisers and then the advertisers try and figure out how to sell you more stuff.
This project has been successful. One of the nice things about it is, if you use it, you don’t know you’re on the blockchain. Steemit, you see the posts. If you’re a normal user, it looks similar to Facebook or Reddit.
What’s actually going on behind the scenes is that they have that decentralized blockchain that’s keeping everything running and that makes it unique.
BitShares is slightly different. In that, it’s a real-time growth trading platform. So it’s really made to do fast and efficient transactions and smart contracts. Why this is such a big deal is that when it was released, when it was competing with Bitcoin, Bitcoin couldn’t even come close to matching its speed or scalability, and as Bitcoin is really struggling with it’s scaling, the whole idea behind BitShares is that they’re able to infinitely scale.
EOS is supposed to be a mix of these existing technologies plus some extra smart contracts stuff. Which has made it really appealing and the reason for why so many people have gotten involved with it.
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