Centralized Decentralization. The following technology report examines the past, current, and expected future state of the platform protocol EOS.
The introduction of Ethereum in 2013 facilitated the development of smart contract platforms, yet the crypto community quickly identified the weaknesses of the associated Proof-of-Work algorithm. These weaknesses are closely linked to the scalability trilemma and rising transaction fees, with the Ethereum network being considered secure and decentralized, yet insufficiently scalable. Block.one has attempted to address this scalability trilemma by establishing EOS, a smart contract platform prioritizing scalability and usability for developers when deploying decentralized applications (dApps).
Following in the footsteps of Daniel Larimer’s previous projects of Bitshares and Steem, EOS adopts Delegated Proof-of-Stake (DPoS) as its consensus algorithm. The goal of DPoS is to enable high transaction throughput at low latency, and ultimately achieve unlimited scaling to process millions of transactions per second. The architectural design of EOS hence sacrifices a degree of de-centralization. with only 21 block producers being elected to validate transactions. Zero transaction fees is a core feature of EOS, with block producers instead being compensated via token inflation for block creation. EOS further proposes several notable features, including unique resource allocation and governance models.
Widely considered an “Ethereum Killer”, EOS raised US$ 4bn during its one-year token sale, the largest token sale to date. The mass adoption of a smart contract platform hinges on the platform’s scalability, and we believe EOS has the potential to be the first major competitor of Ethereum. However, EOS is still at an early stage of development with limited use cases, and its success will depend on the platform’s ability to achieve sustainable usage, to scale and grow, and to build and implement the many ambitious components of the platform that are currently in a planning stage. Centralization, unsustainable deployment of dApps, undermined governance system, resource allocation issues, and loss of key personal are further key risks facing EOS.
- Executive Summary
- Consensus Algorithm
- Notable Features
- Smart Contract Development
© 2018 Standard Kepler