Nowadays, most people have at least heard of cryptocurrencies and their importance worldwide. EOS is one of the cryptocurrencies everyone is talking about these days. The reason for this is that EOS’s overall performance on the market went up by 41% at the time when the global cryptocurrency market capital fell by 45%.
In case you have no idea what the above paragraph is talking about, it doesn’t mean you should not get involved in this industry. It only means you need a better explanation of EOS and probably other cryptocurrencies too. This introduction to EOS can provide you with all the right information, so feel free to check it out.
What Is EOS?
We understand that people who don’t have close contact with cryptocurrencies might find it difficult to understand what EOS is and how they can use it. As a matter of fact, after many questions asking for a better explanation, the EOS’s team stated the following on their site’s FAQs page:
“We believe that EOS means different things to different people. We have received numerous amazing interpretations of what EOS stands for or what it should stand for so we have decided not to formally define it ourselves.”
Therefore, we are free to interpret EOS as a decentralized network capable of processing millions of transactions per second. Moreover, apart from being fast, the transaction process should charge no fees. If you are not interested in the tech part, this is the simplest definition possible.
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Furthermore, the EOS blockchain’s ultimate goal was to be operational in a way similar to Windows or Android. People could then use the system to build smart contracts, thus allowing developers to create decentralized Apps known as DApps.
EOS is supposed to enable everyone to use it, as it should work in the same way as the world’s best-known systems. Easy navigation is the key point here, as well as the ability to create DApps in the same way developers create all the well-known mobile apps on Android.
Why Is All This Important?
Before we go any further into EOS in particular, let’s first talk about cryptocurrencies and their purpose in the first place. The first crucial thing you need to learn is the importance of decentralization. The sole purpose of this technology is to prevent such Apps from being owned, controlled or managed by a single person or authority.
For example, imagine a decentralized version of Facebook that is not owned by Mark Zuckerberg or anyone else he decides to sell it to. There would be smart contracts that would overlook all the action on the platform and sort out hate speech, rudeness, or explicit photos. You won’t live in fear that someone could hack your account and use it to do any harm.
Now when we got that covered, you might wonder what makes EOS different from other blockchain technologies. The answer is simple — EOS should be able to handle millions of transactions per second. In that way, EOS would become a game-changer as the mass market would instantly adopt the blockchain technology by large.
To help you get a better picture, digest this fact — the most popular blockchain, Bitcoin, can process no more than 7 transactions per second, while Ethereum processes a maximum of 23. Now, since you know that EOS is capable of processing millions of transactions, it is clear why people named EOS a potential Ethereum killer.
Let’s Put EOS into Practice
The best way to understand anything is to illustrate with an example, so here’s one. Last year, a wave of mass-market adoption hit Bitcoin. Unfortunately, as Bitcoin can process only 7 transactions per second, the process resulted in around 200,000 transactions being unconfirmed and stuck for some time.
Ultimately, even though Bitcoin is undoubtedly fantastic, it couldn’t compare to VISA’s 24,000 transactions per second.
Now, let’s go back to Facebook for a second. Facebook encounters more than 52,000 likes per second, all of which count as one mini transaction that you don’t see happening at that moment. For this reason, Facebook requires a reliable blockchain technology that can process a vast number of transactions per second and thus prevent a possible halt of the platform.
Although it still hasn’t reached its full potential of managing millions of transactions, the recent rise on the market will highly likely push EOS to the blockchain throne.
CaptainAltcoin’s writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com