EOS – A Revolutionary Payment System And Crowdfunding Model

EOS.IO is a blockchain and a cryptocurrency token that is coded to operate as a platform for smart contracts and decentralized applications (Dapps). EOS is designed to act as a decentralized autonomous corporation.

What is EOS?

EOS is based on a whitepaper that was published in 2017, and the cryptocurrency’s blockchain had been developed since then by the private company block.one.  The EOS blockchain’s open source code was released by block.one on June 1, 2018. To make sure that the EOS native token is widely distributed when the EOS mainnet is launched, block.one decided to distribute one billion tokens on Ethereum’s blockchain. This distribution plan provided means that any user could use to launch EOS’s blockchain, once block.one released the blockchain’s code.

EOS mainnet launch:

EOS was set to launch in June 2018. Block.one decided to get out of the way of the project to prove that the blockchain’s code is really open source. The launch of EOS’s mainnet was in the hands of the network’s users, whether or not this would result in some sort of chaos.

On June 1st, 2018, EOS’s Ethereum tokens were frozen in anticipation of the launch of EOS’s mainnet. A group named The EOS Mainnet Launch Group (EMLG) decided to work on a secure and flawless launch of the currency’s network. Despite that, before the official launch date, news circulated that there were critical vulnerabilities detected in the network’s code, as published by a Chinese cybersecurity company. Ahead of that, the EMLG team worked tirelessly to fix those vulnerabilities.

On June 14, 2018, the mainnet was successfully launched and block producers started producing blocks and confirming transactions. EOS’s blockchain is designed to only rely on 21 “block producers”, or validators. This approach is quite different from Bitcoin’s throughout which any miner running the Bitcoin code can confirm transactions.  

Since its launch, all features of EOS’s blockchain have become operational. The network’s architecture is able to process thousands of transactions every second.

EOS airdrops:

One of the most amazing features about EOS is EOS airdrops which are expected to revolutionize the concept of crowdfunding. Unlike Ethereum based ICOs, projects that decide to go for EOS airdrops for their crowdfunding campaigns will not collect any funding directly when they distribute their EOS based tokens for free via airdrops.

The project’s owners will simply distribute a percentage of their EOS based tokens to the EOS community totally free of charge. This represents a unique means for funding a project. After the project’s tokens are distributed via airdrops, the EOS market will determine the value of the token according to the free market’s law of supply and demand. The project’s team will then sell a percentage of their owned tokens to raise money to fund the project. Due to the unique and simple nature of EOS airdrops, more and more projects are deciding to abandon Ethereum’s ICO crowdfunding model for the EOS airdrop model.

The following represents a few examples of successful EOS airdrop projects:

Chaince:

Chaince is a blockchain-based asset trading platform that is mainly centered on EOS projects. The project’s owners airdropped 900 million of their total 2 billion EOS-based tokens on June 15.

Many experts in the community see Chaince as one of the most mature EOS based projects, due to the fact that the trading platform is already operational.

EOX:

EOX is developed to serve as a decentralized trading platform that permits spending of all EOS based tokens. EOX aims at formulating a global trading system that allows any form of product or service to be transacted via cryptocurrencies without having to rely on fiat currencies. EOX airdropped 900 million tokens of a total of 10 billion EOS-based tokens to the EOS community.

Hours Pay:

Hours Pay is a global payroll platform that enables companies to exchange all forms of secure encrypted data with payroll vendors via the blockchain. Hours Pay airdropped their EOS tokens on June 30. 900 million of a total of 1.2 billion tokens were airdropped.

Even though Hours Pay seems promising, they still haven’t published a whitepaper or provided detailed info regarding the technical aspects of the project.

In conclusion, it is worth mentioning that EOS is the next generation smart contract and Dapps platform that has the potential to become more popular than Ethereum’s platform. Also, the EOS airdrop model is much more promising when compared to Ethereum’s ICO crowdfunding model. It won’t be surprising if within the next couple of years most projects will use EOS airdrops to fund their projects. Who knows? Let’s wait and see.

On Yavin is the Founder and CEO at Cointelligence, the data layer for the crypto economy. He has extensive experience as a serial entrepreneur and an angel investor, as well as more than 20 years of experience in the tech industry. Having earned the reputation of crypto expert, On continues to contribute to this industry in ways that advance cryptocurrencies and blockchain technologies. On uses his deep hands-on experience and knowledge of SEO, PPC, and ORM to create successful online marketing strategies for ICOs, crypto, and blockchain companies.