EOS A high-performance smart contract platform

EOS is an open-source protocol designed by Dan Larimer and Block.one to support the creation of smart contracts and decentralized applications (dApps). Its network features a delegated Proof-of-Stake (DPoS) consensus mechanism to help secure the platform while giving it a level of performance desirable for running applications. Through DPoS, EOS offers greater scalability and transaction throughput than traditional blockchain networks, but to a certain extent, it relinquishes complete decentralization and censorship resistance.

Background

EOS was published by software publisher Block.one and development is led by CTO Dan Larimer, who founded Steem ($STEEM) and BitShares ($BTS). The project competes with other popular smart contract platforms such as Ethereum ($ETH), NEO ($NEO), and Cardano ($ADA). EOS tries to differentiate itself by providing transaction throughput capable of handling thousands of transactions per second without having to pay direct fees, improved usability for all parties involved, and governance for business and chain maintenance.

EOS makes use of on-chain governance whereby token holders can vote for the block producers (BPs) as well as various upgrades to the protocol, monetary policy, or stakeholder bylaws. The EOS User Agreement defines and enforces the user bylaws. The rules are not enforceable at the protocol level but rather act as a terms-of-service agreement that users must agree to. This community developed agreement replaced Block.one's Constitution by a majority BP vote back in April 2019.

Ecosystem funds play an important role in the growth and adoption of EOS. Their mandate is to make strategic investments that increase the value of the projects and tokens to ensure the necessary infrastructure is built and proper incentivization exists to attract developers to build on the platform. The most prominent is a $325 million fund ran by Mike Novogratz called Galaxy Digital EOS VC.

Technology

Block.one built EOS with scalability as a primary objective. Beyond its delegated Proof-of-Stake (DPoS) consensus mechanism, EOS employs Graphene technology and (in the long-term) parallel processing to maximize performance.
Graphene technology: An open-course software toolkit developed by Dan Larimer that helps improve transaction processing capabilities. It is currently used by previous Larimer creations, Bitshares and Steem, as well as MUSE and Peerplay.
Parallel computation: Also referred to as horizontal scaling, this technology divides transactions and smart contract execution among multiple processors to help reduce the run time of a program. The first protocol version will operate on a single thread (i.e., a single processor) but will shift to a multithreaded platform in the future.

EOS requires users to obtain the following resources to submit transactions and run decentralized applications:
CPU: the processing power it takes to operate a dApp and read data from a storage device (measured in microseconds)
NET: network bandwidth or the average rate of data transfer through the communication protocol (measured in bytes)
RAM: data storage

EOS holders receive CPU and NET by staking their tokens and receiving a proportional amount of the network resources. As a result, the network utilizes a no direct fee model where tokens give holders access to their pro-rata share of network resources. That being said, any operation needing storage or to create an account requires RAM to be purchased separately.

EOS uses the WebAssembly Virtual Machine (WASM), which offers high speed and performance as well as support for a multitude of programming languages such as C, C++, and Rust, giving developers access to existing optimization and debugging tools.

Additionally, EOS implements human-readable names and account recovery solutions at the protocol level. Recovery is made possible with the designation of a recovery party that can reset the owner's keys with their approval. Unlike traditional multi-signature applications, the recovery partner has no control over the account other than helping the owner reset their keys.

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