How EOSIO Works
The EOSIO blockchain is created to simulate the operation of a real computer, and its software itself applies computational principles to its operation. For example, there are three types of resources on which the EOSIO blockchain operates.
These include:
- Bandwidth: required to send information across the network.
- Computing Resources: the processing power required to run a decentralized application.
- Public storage: used to store data in the blockchain.
All three of these sources are required on EOSIO, which means that developers must hold EOS to run decentralized applications. It should be noted that decentralized applications built on EOSIO do not oblige users to pay transaction fees, making EOS transfers free for users of decentralized applications. Such costs do not disappear from EOSIO, but are simply passed on to developers of decentralized applications, who must pay for network resources.
EOS Staking
Delegated proof of stake (DPOS) is the method by which the EOS blockchain finds consensus. In this case, instead of any coin owner being able to validate transactions, they use their registered coins to vote for a "blockchain producer" on the network who will be responsible for validating the transactions.
There are three types of resources to consider when working with EOS: RAM, CPU, and NET.
- Processor CPU refers to the processing power that can be used in the EOS network.
- NET is the network bandwidth that you are allowed to use.
- RAM serves as data storage in the blockchain. Users need RAM to create new EOS accounts, enter information into an account), and DAPPS use RAM to store application status data. In both cases, RAM is used to store records in the EOS blockchain.
Staking
Blockchain EOS, based on DPoS, contains a voting system in which stakers delegate their work to a third person. In other words, members can vote for multiple delegates who will protect the network on their behalf. Such people are called "block producers". Their job is to run nodes to support the main EOS network. Users with EOS tokens can vote for the so-called "producers". That way it is possible to earn CPU and NET rewards in the aftermath.
Increase CPU & NETEOS History and ICO
In the early days of Bitcoin, a young man named Daniel Larimer fairly quickly discovered that Bitcoin was going to have scalability problems in the not-too-distant future. He voiced his concerns about this to the community, but no one listened to him. Seven years later, the entire blockchain space came to its senses because Dan Larimer's warnings came true. In 2017-2018, the market fell 70% in just four months and has been struggling to recover ever since. Bitcoin faced the problems Dan talked about. Transaction costs were extremely high, the network slowed to a complete standstill, and people just couldn't use it anymore. Many people left blockchain vowing never to return, and for good reason, as some lost 70% or more of their savings investing in it. Meanwhile, Daniel Larimer was already busy working on EOSIO at the time, along with his colleague and Block.one CEO Brendan Bloomer. In June 2017, they published a white paper on the project and began distributing EOS tokens in an initial coin offering (ICO).
EOS Capabilities
According to the platform's technical description, EOS technology is a blockchain architecture that could eventually scale to millions of transactions per second, eliminate fees, and allow fast and easy deployment and maintenance of decentralized applications within a managed blockchain.
For EOS developers, the lack of user fees is paramount, and they explain that a blockchain platform that users can use for free is likely to become more widespread.
EOSIO Advantages
Scalability: EOSIO can manage over 4,000 transactions per second from its public blockchain, as opposed to an average of 15-20 transactions per second from other blockchains.
Speed: Applications running on EOSIO have been shown to have shorter wait times than applications created on other blockchains . What used to take hours can now take seconds. This means users can enjoy greater speed without sacrificing the security that blockchains offer .
Low cost: EOSIO's cost model eliminates the need for transaction fees, making it a more profitable model than other blockchain protocols . This makes it affordable for users and encourages developers to deploy their dApps on it rather than competing blockchains.
Greenness: Many blockchain platforms require large amounts of electricity to power the computers needed to manage distributed networks. Instead, thanks to EOSIO's consensus mechanism known as "Delegated Share Proofing" (DPoS), this protocol is more sustainable and energy efficient, being 66,000 times more efficient than Bitcoin and 17,000 times more efficient than Bitcoin or Ethereum.
