Since its inception, EOS’ goal is to provide developers with a decentralized blockchain on which to build DApps (decentralised applications). The founders designed EOS to provide all of this on 0 transaction fees at lightning speed (millions of transactions per second). EOS IO is the platform, and EOS is the coin that serves as the lifeblood of the platform. EOS coins can be staked in order to fund applications built on the platform. The blockchain’s Delegated Proof of Stake (DPoS) mechanism (see EOS Token Security for a more detailed description) is a unique, democratic approach to consensus. EOS has a couple of use cases across a wide variety of industries including, but not limited to e-commerce, social media, finance, and healthcare. The TopCoins’ goal is to provide Australians with up-to-date information on EOS and other cryptocurrencies. Stay tuned for pertinent updates on EOS price AUD, EOS price prediction, and EOS ASX share price.
EOS was founded in 2017 by Daniel Larimer, a software engineer, programmer, and self-described “serial entrepreneur” who have run three high-profile tech companies: Bitshares, Steemit, and EOS. Larimer started out in the military industrial and weaponry industry. He made the shift to cryptocurrency after realizing that he preferred to work on constructive and innovative systems instead of working on military projects designed to destroy. Larimer created DPoS and implemented it through his earlier project, the BitShares network. EOS holds the record of cryptocurrency’s longest initial coin offering (ICO), a full year (from June 1, 2017 to June 1, 2018). The ICO was run by Block.one (for which Larimer was working as the Chief Technology Officer), and it managed to make $4 B during its run. The Securities and Exchange Commission (SEC) fined Block.one for running what they called an “unregistered ICO.” Block.one agreed to settle for $24 M. EOS was first listed for $1.20 IN 2017, after which it quickly saw an over 350% increase to around $5. After an all time low of $0.48, it jumped to $12 in the same year, and eventually to its all time high of $22.89 in April the year after. From that point on, EOS’ prices dropped more than 50% until finally settling on the $2 - $3 band (sometimes spiking to $8 from time to time), where it has stayed since. In January 10, 2021, Larimer announced his official departure from Block.one.
The Market Cap
Market capitalization or market cap, is the total circulating supply of a crypto, multiplied by its current price. EOS started out with a meager price of $2.25 in July 2017 (around $424 M market cap). In April 2019, EOS’ price hit $22.89, sending its market cap to an all time high of $17.5 B. EOS has seen a relatively stable stint at around $2 - $5 since mid-2019.
EOS Token Security
EOS uses a Delegated Proof of Stake (DPOS) consensus mechanism. The algorithm secures the blockchain through voting; anyone who holds a coin can decide which nodes get to validate transactions. The weight of a user’s vote depends on the amount of coins that they are staking. Authorized block producers can campaign for votes from token holders, they can promise certain rewards making it a reputation-based system. Elected validators are called “delegates.” This shields the blockchain not only from malicious use, but also from centralisation.
Is EOS Centralized?
The DPoS is designed to keep the blockchain decentralized through collusion resistance -- a design that promotes a healthy sense of competition between delegates. Ironically, this particular feature is what makes the blockchain more susceptible to being controlled by a small group of validators who could act maliciously through vote trading and collusion. There are two sides to the story, so only you can decide whether the blockchain is decentralised enough to invest in (if that’s a major criteria for you, of course).
Which are Primary Features of EOS?
EOS has a delegated Proof of Stake (DPoS) consensus mechanism, parallel processing that allows for scalability, and a 5% annual inflation mechanism. We will be discussing these features later, when we’re discussing what makes EOS different from other cryptocurrencies. Another thing to remember: the EOS is the coin, while EOS IO is the blockchain protocol that. EOS runs the network, it’s a prerequisite to building anything on EOS IO. The coin essentially buys a claim on the network’s resources.
What is a Memo?
A memo (also known as a destination tag) is an extra piece of data that you would need to be able to transfer EOS to an exchange (other cryptocurrencies such as Stellar, XRP, Cosmos, and Binance Coin require this too). Most exchanges such as Binance, Kraken, and Coinbase come with both a wallet address and a memo for currencies that require it. Don’t forget to include the correct memo on the corresponding field before transferring EOS to a wallet on an exchange.
What is The Future of EOS?
In spite of EOS’ relative stagnancy in terms of yearly prices, some analysts predict a rise in prices ranging from around $6 to up to $15 by the end of the year. On the other hand, others think that its prices will stand stable at around $3.
How is EOS Different From Other Cryptocurrencies ?
EOS has the following features:
A delegated Proof of Stake (DPoS) consensus mechanism that both secures and decentralises the blockchain,
Parallel processing, or simultaneous data processing that allows for the processing of a larger amount of transaction per second,
5% annual inflation, 1% of which goes to the block validators, 4% of which goes to “savings”, to be used for future proposals, so it could work for the community in the future. The combination of these features make EOS unique, and for some, worth buying and investing on.
How To Buy EOS Crypto in AU?
Australians can buy and sell EOS in online crypto trading platforms. Exchanges allow users to fund their accounts through bank transfers (some even allow funding via Paypal). If you’re thinking of buying and trading EOS, always remember to do your due diligence first. You can refer to our easy-to-use crypto tracker (it conveniently displays EOS price in AUD and in other currencies) before making any definitive decisions.
Why Is Buying EOS Cryptocurrency Beneficial?
EOS is special for a couple of reasons:
EOS is scalable. EOS has low latency, meaning it can process a high volume of data -- around 10,000 transactions per second.
No transaction fees. One of EOS’ main selling points is the fact that it has no transaction fees, allowing businesses to earn and save more.
EOS utilizes a DPoS consensus mechanism. This shields the blockchain from centralization and malicious users. EOS has addressed issues that haunt a lot of blockchain systems, which makes it a good platform to build commercial dAPPS on.
Are EOS Tokens a Good Investment?
EOS’ share price is partly carried by bullish investors who believe in its promise of a network that is every bit as special as Ethereum, but more scalable, secure, and way cheaper. However, EOS’ current prices are not even in the same league as Ethereum’s (even on its all time high), so there’s a considerable amount of pessimism when traders forecast EOS’ future. With that being said, crypto prices literally change every day, so it’s crucial to do your own due diligence before investing in EOS (or any other cryptocurrency for that matter).
Can I Buy EOS Coins with My Paypal Account?
No. As of writing, Paypal account owners can buy, hold, and sell Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, but not EOS. Moreover, only US-based Paypal owners can buy crypto on the platform.
Can I Buy EOS with a Credit Card?
The answer depends on the exchange that you’re buying from. Some trading platforms allow users to fund their accounts through bank transfers, while some only allow trade with another digital currency. Ready to buy, hold, and trade EOS? You can refer to our easy-to-use crypto tracker for EOS’ current price. The tracker conveniently displays other relevant data such as Bitcoin prices and real-time figures for other altcoins and tokens.
EOS Price Prediction: 2021 and Beyond
The end-of-year bull run has been eventful for cryptocurrency enthusiasts. Key players such as Bitcoin (BTC), Ripple (XRP), Ethereum (ETH), and more saw massive gains. Until now, many are still enjoying the bull run. The rest of the tokens that occupy the top 20 spots haven’t fallen behind the trend, either. The EOS blockchain (EOS) also benefited from BTC’s bull run, with slow but steady gains of under 1%. With 2020 coming to an end, investors and enthusiasts alike have been going over various Eos Price Prediction records. These will play a huge role in helping them decide whether it’s still a viable asset in 2021 and beyond.
As it stands, EOS currently isn’t the strongest player on the market as it has been quiet for most of 2020. Unlike other tokens, which have made headlines throughout the year, EOS has remained out of the spotlight. Now onto the big question–does this token have a future in the competitive cryptocurrency landscape?
A Background on EOS
EOS was initially released in 2017 by Block.one, a company based in the Cayman Islands. Its goal is to become the biggest and most scalable smart contract blockchain network worldwide. Its main selling point is the elimination of transaction fees. But it doesn't sacrifice speed. EOS is capable of processing up to 1,000 transactions per second.
The network has two primary features. The first is its ability to perform smart contracts. These are lines of code that can perform predetermined actions when they meet certain conditions. In the real world, these would play out as business agreements. When a contract is made, you’re assured of each person’s role. This will also guarantee all outcomes based on what's written on the contract. In the digital space, smart contracts allow developers to run applications exactly how they were planned to run.
In conjunction with that feature, EOS is also fully capable of creating decentralized applications. These are applications that aren’t controlled by a singular authority, which is usually a central computer. Instead, these run on a blockchain network or a distributed computing system. The peer-to-peer (P2P) model is attractive because it's more flexible and stable. That's possible without sacrificing safety.
At this point, the above may start sounding familiar. EOS’s value proposition is like that of Ethereum’s. They do the same things: process transactions and create decentralized applications. But they’re completely different blockchain networks, and each attracts a different audience.
EOS vs. Ethereum: The Big Difference
It isn’t rare for blockchains to do very similar things but at completely different scales. That’s because new cryptocurrencies are often created to address the issues of their predecessors. You may be familiar with Bitcoin’s major flaw. It has an extremely slow transaction processing time. Newer tokens, such as the ever-popular Litecoin (LTC), were created to respond to that flaw directly. Litecoin can process transactions 4x faster than Bitcoin. It can also be mined without a dedicated mining rig. It’s a more accessible, market-friendly “budget” token that does its job pretty well.
Like Litecoin, EOS was established to address concerns against a similar company, Ethereum. One of Ethereum’s biggest downsides is its scalability, mainly due to its proof-of-work model. This model requires all miners to solve the code required to process transactions. The token would then be rewarded to the one with the most hardware or strongest computing power. Because the code can’t be solved until everyone finishes, the system is slow and power-hungry. It’s a huge roadblock that keeps Ethereum’s transaction processing speed low, its transaction fees high, and its scalability almost nonexistent.
In contrast, EOS runs on a delegated proof of stake (DPoS) model. It’s a twist to the traditional proof of stake model that popular tokens, including BTC, run. Essentially, it requires token holders to “vote” for people responsible for validating transactions. This is all done within the blockchain network. It’s a slightly complicated procedure as each delegate takes a role and acts within it. Stakeholders would also have to agree (by majority vote) that a high enough decentralization level has been achieved. EOS has a total of 21 block producers (BPs). Instead of thousands of miners, only these BPs can handle the network. As a result, the blockchain can process significantly more transactions than others.
A Big Catch
While EOS seems like a super-promising cryptocurrency, plenty of critics don’t believe that it’s decentralized enough to meet traditional blockchain standards. After all, the point of decentralization is to allow the entire blockchain network to make decisions. In this case, only the 21 BPs have the power to verify transactions. But if you’re interested in investing in a more scalable asset, then EOS is, without a doubt, one of the most scalable on the market.
EOS isn’t a minable asset, nor is it pre-mined. The BPs determine their expected pay, and some tokens are created based on the median value. One billion tokens can exist at a time. But depending on the market, a 5% annual inflation is possible. In theory, EOS has no transaction fees. But some believe that these extra charges are hidden within the inflation rate.
Regardless, EOS shows potential in its unique position in the cryptocurrency industry. It might not be the best choice for traditional coin enthusiasts, but it’s not a bad asset from an investment perspective. Despite being out of the headlines in 2020, it continues to roll out projects that may brighten up its position in the next year.
A Recap of EOS Prices in 2020
Like many other newer cryptocurrency on the market, EOS started with a relatively good run. Its value peaked upon the initial hype but continued to drop to a more stable value. It’s seen bull runs of up to over $20–but eventually resettles into the under-$5 mark. EOS is very volatile and prone to huge price fluctuations. So any big hype surrounding this token can result in another massive price increase.
In 2020, EOS prices have been pretty stable. Three notable bull runs occurred within the year. The first was right before the pandemic reached global recognition in mid-February. Its value grew to $5.35–the highest in the year. In August, it settled to just under $4 but dropped soon after. In early December, it followed the BTC bull run and rose to over $3. But nearing the end of the year, it has dropped to around $2.8.
The main reason why EOS didn’t see huge improvements in 2020 is because it’s been in the shadows for most of the year. It's unlike ETH, which investors are watching closely because of its proof-of-stake migration. Or Ripple (XRP)’s, which recently signed a partnership with Flare. EOS hasn’t made any groundbreaking announcements. But that doesn’t mean that EOS has been sitting idly all year. It’s been working on getting developers to build decentralized finance (DeFi) projects on its network. While most are still loyal to Ethereum, there’s a huge conversion opportunity for EOS.
EOS after 2020: A Bright Future Ahead
There are two reasons why the future is bright for EOS in the next year. First is the wider adoption of cryptocurrency. The pandemic has made digital transactions more mainstream. This has brought investors’ interests toward the world of tokens. That means massive potential not only for EOS but for the entire crypto market. The second is the continuous development of EOS technology. As it aims to bring developers to its blockchain network, it will likely be more aggressive with developing its platform to guarantee those conversions. Its main contender, Ethereum, is also standing on shaky ground with its migration, giving EOS an even greater advantage.
In the long-term, it’s possible to see EOS prices go up to a steady $3.5 to $6.5 in 2021 and up to $15.5 by 2025. For now, all there is to do is wait and watch the market move.