How EOS can solve blockchain’s scaling problems
One of the most pressing problems facing blockchain platforms is the lack of scalability i.e. the ability to handle a larger number of transactions per second as the network grows. It has been widely discussed that existing blockchains are not able to scale the next generation of internet style applications. The vision is to increase the scalability by a large factor as the network expands. A large increase in the scalability will see a revolution in the type of apps running on the blockchain.
If we were to categorize the main scalability problems in the cryptocurrencies, they would be:
- The time is taken to put a transaction in the block.
- The time is taken to reach a consensus.
The scalability problems are the main thing restraining everybody’s excitement around blockchain technology. In 8 years very little progress has been seen regarding this context. Besides the Lightning Network, the only progress has been bickering over block sizes and highly bloated networks (Ethereum).Scalability is critical because the true application of decentralized, trustless systems is between machines. Machines need to communicate at high frequency in untrusted environments; this is the real future of Blockchains: machine-machine coordination. A blockchain unfettered by scalability constraints could power billions of machines exchanging data at enormous scale.
EOS Blockchain is aiming to become a decentralized operating system which can support industrial-scale decentralized applications.what has really captured the public’s imagination is the following two claims:
- They are planning to completely remove transaction fees.
- They are claiming to have the ability to conduct millions of transactions per second
EOS is thought of as a “best of both worlds” which combines the high throughput of Graphene and BitShares with the smart contract usability of Ethereum. Developers can then build applications on the EOS software. It will be highly scalable, flexible, and usable.
Probably the most critical feature to truly understand what EOS is all about is this feature i.e decentralized operating system. Now, Ethereum is a decentralized supercomputer, EOS positions itself as an operating system. That in itself makes EOS, theoretically at least, a more focused product
How EOS solves the scalability problem
The biggest problem that the blockchain based space is facing is a scalability issue.Visa manages 1667 transactions per second while Paypal manages 193 transactions per second. Compared to that, Bitcoin manages just 3-4 transactions per second while Ethereum fairs slightly better at 20 transactions per second.The reason why blockchain-based applications can’t compute that many transactions per second are because each and every node of the network must come to a consensus for anything to go through.EOS are claiming that because they use DPOS aka the distributed proof-of-stake consensus mechanism, they can easily compute millions of transactions per second.
The EOS.IO software introduces a new blockchain architecture designed to enable vertical and horizontal scaling of decentralized applications. This is achieved by creating an operating system-like construct upon which applications can be built. The software provides accounts, authentication, databases, asynchronous communication and the scheduling of applications across hundreds of CPU cores or clusters. The resulting technology is a blockchain architecture that scales to millions of transactions per second eliminates user fees, and allows for quick and easy deployment of decentralized applications.
Perhaps the most notable aspect of EOS is who’s involved. For example, there’s the familiar face the company pulled to be its CTO: Dan Larimer.Larimer, who’s credited with inventing delegated proof-of-stake and the concept of decentralized autonomous organizations (later adopted and modified by ethereum), is a cryptocurrency veteran who made a splash in 2014 with the launch of BitShares, a decentralized exchange.Each project, Larimer claims, solved a core problem inhibiting the widespread use of blockchain applications on a commercial scale.
The new project of Larimer’s, much like his past ones, has been met with pushback from some in the community. EOS will incorporate Larimer’s delegated proof-of-stake (DPoS) consensus protocol – which can be compared to a republic whereby members of the community delegate the responsibility of verifying transactions to elected ‘witnesses.”
Proponents claim that DPoS has the potential to reduce transaction processing time because fewer nodes are involved in the verification process. This, in turn, provides a workaround to some of the traditional scaling issues found in proof-based protocols.
Furthermore, there will be no user fees on the EOS blockchain. This would also set them apart from the competition and could help them gain more widespread adoption of their platform.
EOS also wants to put a blockchain constitution in place to secure user rights and enable dispute resolution.
If the EOS team can really pull off all of these promises, it would be hugely successful. But until they have something to show, this all remains just a vision.
The team behind EOS
The core team behind EOS is “Block.one”, which is based in the Cayman Islands. Brendon Blumer, the CEO, has been involved in blockchain since 2014. Dan Larimer, is the CTO. He is the creator of delegated proof-of-stake and decentralized autonomous organizations aka DAOs. He is the also the man behind BitShares and Steem.