EOS Token Sales Break Records
Block.one, a relatively small startup company based in the Cayman Islands, has managed to raise an astounding $700 million solely from the sales of its EOS token. The EOS token was launched on Ethereum’s network, and its token sales are unprecedented since no other ICO has even come close to raising this amount.
Who’s behind the launch of the EOS token? Dan Larimer. Most people who closely follow the crypto-world know that Dan developed the steemit platform, an incentivized blogging and social networking website with approximately half a million users. He also created BitShares, a decentralized platform for trading crypto, and BitUSD, a type of market-pegged asset on the BitsShares blockchain. Although some already consider Dan Larimer to be highly reputable, I think his creations haven’t been around long enough to stand the test of time.
What Does Block.one Say?
Block.one’s official website says that they decentralize everything. They also say, “block.one designs free market systems to secure life, liberty, and property by publishing open source software that is free for everyone to use”. This statement is at least partly true (so far) because the programming code for EOS and the EOS token is available to everyone.
What The Heck Is EOS?
So, what exactly is EOS? EOS is described as a decentralized and consensus blockchain operating system. Since its trading only began in June 2017, it can be considered a newcomer to the cryptosphere. For a newcomer, it has certainly created quite the storm.
According to the EOS.IO whitepaper, standard features like permissions management, authentication, accounts, databases, and scheduling are already implemented in the basic software. Since this work has already been done, developers can dedicate their time programming on top of this basic structure to suit whatever specific business requirements there might be.
EOS is Popular, But Why?
What other features might have made EOS and its EOS token so popular? For one, it claims to have a rather dynamic blockchain which allows for decentralized applications to scale horizontally and vertically. Furthermore, there are supposed be no fees or charges associated with transactions. Depending on how much, or percentage, of its network you own, you get the equivalent allotted to you in terms of bandwidth and storage space.
Scalability issues have been raised when it comes to the bitcoin or Ethereum network. Their networks tend to suffer from congestion when they have to handle ICOs; and, the frenzy with the CryptoKitties app created problems on Ethereum’s network. Given these problems, how well will full-fledged, enterprise-level, distributed applications be able to run on their networks? This is a very important question because numerous well-known companies and banks have expressed an interest in developing large applications using blockchain technology.
EOS: Millions of Transactions Per Second?
According to Dan Larimer’s EOS Consensus Presentation in May 2017, who has been credited with the delegated proof-of-stake concept, the EOS platform, with its own blockchain, will process millions of transactions in a second. This is said to be accomplished with the help of asynchronous communication and parallel processing.
In his presentation, Dan points out that Facebook is able to handle approximately 52,000 likes per second. This number doesn’t even take into consideration the number of user messages, posts, and many other things that transpire on Facebook in a matter of a second. Can the Ethereum network handle this? Dan says that for the Ethereum network to merely process Facebook’s 52,000 likes, it would have to be thousands of times more efficient than it currently is.
EOS Has Yet To Prove Itself
Although EOS claims that it has the solution to the current scalability issues, it remains to be seen whether its plan will be successful. Also, why is it that the company has said, “The EOS Tokens do not have any rights, uses, purpose, attributes, functionalities or features, express or implied, including, without limitation, any uses, purpose, attributes, functionalities or features on the EOS Platform”. I suspect that this is how EOS will circumvent government regulations. Is it plausible that this could be some type of scam? No purpose? No use? What kind of wording is this? What are we supposed to infer from this?
The only thing people have been betting on is the dramatic price increases solely based on what EOS has promised to deliver. Nothing concrete has been delivered as of yet. Despite not having proved anything, EOS token sales and prices have skyrocketed. The Wall Street Journal points out that, although only tall promises have translated to huge price increases, it’s all happening in an “opaque marketplace”. A bitcoin investor commented to Wall Street that this is, “like Windows launching, but much bigger”.
For a skeptic like myself, I don’t get caught up in all the hype. I prefer to play the waiting game. Only time will reveal whether EOS’s promises will materialize. However, EOS is definitely worth keeping an eye on in 2018, along with some other cryptocurrencies.