Welcome back to our mini Eos Educational Series. In the last post we discussed some of the most interesting things I found out about EOS after doing some initial research. Truly, EOS is a inspiring project that comes from a very reputable team with plenty of experience in the market. No wonder it is in the top ten currently out of all the cryptos in the space.

In addition to discussing the interesting things I found, I took the time to classify this project in terms of the industry it needs to target to fully become successful. For EOS, that industry is indisputably the gaming industry. This industry is by far the best chance for EOS to capture a very large market. it could easily become the forefront leader with some of the largest companies in the gaming industry.

Now, in this next post we want to tackle some more of the generic questions about the project, talk about the ICO, and discuss the largest indicator for the future success of this project. Let’s dive in starting with some of the generic questions for this project.

Nothing should be considered investment or financial advice. Enjoy the ride.

Kicking things off, what is EOS?

What Is The EOS Project

EOS is a next-generation (third generation), open-source blockchain protocol that is targeting high transaction speed, security, and layered utility. The entire idea around EOS is to give companies and developers the tools needed to quickly and effectively build out large decentralized systems at scale through utilizing the EOS protocol while still delivering the same high level of security, speed, and utility.

The protocol is similar to a computer and even simulates the same characteristics of one like CPU, RAM Memory, and Hard Disk Storage while these resources are distributed equally across all who stake on the platform. The main things EOS is trying to achieve is to be a scalable, flexible, and user-friendly blockchain for all. In addition, they want the platform to be simple and easy enough for anyone to build upon it.

Initially, the project started as a token on the Ethereum blockchain with a simplified consensus method. Overtime EOS moved to it’s own mainnet blockchain and hosted a consensus algorithm that is call delegated proof of stake or DPOS, the first of its kind. Delegated proof of stake enables the voters or token holders to elect a certain number of nodes that will effectively represent the community and determine staking delegation, upgrades, block confirmations, and network inflation.

When Was EOS Introduced

EOS was introduced in May 2017, and since then it has been recognized as the first performant blockchain platform for businesses around the globe by some. Since the initial proposed launch and whitepaper release, many have considered EOS to be revolutionary – even to the point of naming it an Ethereum killer. While this was optimistic at best, we can clearly see there is a place on the market for EOS, but that place is probably not to knock down every other Dapp platform, but to help offer another solution to the market.

Who Is Behind EOS

The company behind the EOS crypto project is called Block.One. Block.One has been the largest contributor to the development and implementation of EOS. Not to mention this is the company directly responsible for the record breaking ICO which raised billions of dollars to further the development of the EOS protocol and blockchain.

Most notably, Block.one is comprised of very talented individuals that have extensive experience not only building decentralized applications and exchanges, but in marketing them to scale. These past projects, experiences, and history has lead many to believe Block.One will deliver on their promise to build the best protocol on the market for commercial use.

Block.One Other Projects

The latest project Block.One has been involved in is called Voice.

Voice is a decentralized Dapp that is trying to combat large social media giants like Facebook and Instagram. it is essentially an alternative platform for social media that is decentralized and runs off of an EOS.io blockchain. So far Voice has had great feedback and is constantly gaining users while they continue developments and improvements.

While this is a great idea, there is a current issue with the Voice app keeping it from strong organic growth. Right now the main issue is the amount of personal data that is requested in the KYC process to verify users and allow them onto the app. Being a decentralized app, it is not very conducive for people to give all of their personal information in order to use it.

In other word, the project has a long way to go before people will see it as a combatant to the overly censored social platforms on the market.

EOS ICO

This is what EOS is probably most well known for – the record breaking ICO. While money does not directly correlate to performance and sustainability, especially without suitable cash flow to back up the spending, it definitely points to investor and VC confidence in this project.

The ICO for the EOS project lasted over an entire year which already is unlike most ICOs we see today on the market. Over this period, Block.One managed to raise over $4.1 billion which is almost unheard of. This is basically like a traditional startup company raising $4 billion dollars in a couple of series rounds that has only been around for 2 years.

Like I said, this is an insane amount of money, and it practically unheard of even in the traditional world. While it was exciting, the SEC caught on and had a couple of things to say about it.

SEC On EOS ICO

The Security exchange commission took notice of the $4 billion raised by Block.One for their EOS project and chose to investigate the ICO. After some time the SEC did take Block.One to court based on a few things.

SEC made a case that Block.One did not register their token as a securities offering pursuant to the federal securities law, nor did it qualify for exemption from the requirements. While these are clearly offenses in the U.S, Block.One basically got off with a simple slap on the wrist. The SEC and Block.One reached a settlement for the case at a mere $24 million dollars for carrying out an initial coin offering in penalties which is only a fraction of the $4.1 billion they raised.

Out of $4 billion raised for a project that completely ignored guidelines and securities laws, the company with fined a mere amount compared to the total they brought in. This largely sent a clear image around the market – it is better to as for forgiveness than approval. Therefore, more projects are moving forward with ICO sales and token issuance due to the lack of oversight from the SEC and lack of clarity on the general crypto market.

EOS Project Projections

Clearly, with that amount of money from investors the EOS protocol and Block.One alike are set for the next several years. The team could practically spend the next 10 years developing and funding projects without making a cent and be just fine.

Having that much invested is a double edge sword though. Clearly, investors have huge faith in the team and project, so the expectation on the project’s development and impact on the market is high. Investors will want to see progress and what their money is going towards. While this is a huge advantage for the team, it could lead to ulterior motives and practices to start generating cash flow for the project.

While this might not be the case, the project is setup to have a very advantageous future in the crypto community.

Who Is EOS Partnered With

Currently, EOS and Block.One are partnered with several reputable VCs like Galaxy Digital which specializes in blockchain projects, Fin Lab which is a tech company specializing in finance out of Germany, and SVKCrypto which is a company that plans to use blockchain for corporate structures.

There are also many companies currently looking to experiment with the platform and build out dapps and smart contracts for a multitude of things. Most notable are the amount of games and gaming companies currently looking to build out systems on this platform.

EOS Cold Storage

That is great, but what about storing your coins? You could always use a native wallet like this one here, but what about if you want to hold your coins on cold storage?

Hardware wallets and storing your crypto offline is the best form of security. The most popular hardware wallet, Ledger, is currently not supporting EOS, but there is an option called the fairy-wallet for storage which can be pulled from Github. Another option as a hardware soltion to store your EOS tokens is to use the Trezor Model T wallet which can be picked up easily on their website or through Amazon.

If you choose to store your EOS crypto on a device then please be careful and make sure to store your recovery keys as always to prevent losing all of your tokens.

Can You Stake EOS

You can stake your EOS as a block producers and passively receive tokens in return. While this is not a large amount in terms of a payout, it is a solution to passively receive addition tokens without really having to do anything. Similar to other projects with staking pools, you can join a block producer with your staked assets and get a percentage of the blocks confirmed through the pool.

EOS Overview

In short, the project has a very strong lifetime to support its huge advantage and experience across the market. While this is the case, there are still no guarantees that the market will not only choose this project to use, but the community will continually push Dapps and smart contracts. The hope is there, but only time will tell if EOS will be the Dapp king.

I hope you enjoyed this overview of the EOS project! Stick around as we review other projects and talk about their in’s and out’s.

Cheers

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