EOS is a blockchain-based decentralized operating system that is designed to create, host, and support secure, decentralized autonomous applications (dApps) and smart contracts. In addition, EOS nodes subscribe to a “constitution” that binds them, via the blockchain, to the rules and regulations set forth by the EOS community.
Currently administered by the block.one organization, EOS was launched by Dan Larimer, who is also the founder and creator of established platforms like Bitshares and Steem. In 2021 on his now-defunct blog, Larimer announced his resignation from block.one.
As of August 2021, EOS is among the 30 most valuable blockchain tokens by market capitalization.
Unlike most other blockchain systems, EOS nodes are bound to the rules and mandates of a “constitution” that each node digitally signs and records on the blockchain.
Like many smart-contract platforms, EOS utilizes two tokens, EOS and EOS.IO.
Blockchain-based dApps can be commercial or focused on individual users, and work in a way similar to web-based apps. The EOS platform supports all required features for developing, hosting, and using the dApps, like providing secure access and authentication, permissioning, data hosting, usage management, and communication between the dApps and the Internet.
No official full form exists for EOS, and the creators have decided not to formally define it themselves. Compared to the web-based apps platform, the EOS offers a lot of advantages.
Leveraging the scalability potential of blockchain, it is capable of processing large numbers of transactions in parallel. Its ownership structure eliminates transaction charges as users are permitted to utilize resources in proportion to their stake instead of the standard pay-per-transaction model. This also makes it easier for app developers to predict hosting costs.
EOS uses delegated proof-of-stake concept, which allows flexibility to make instant high-level decisions, like rollback and bug fixing, through a majority accord among designated stakeholders.
The EOS ecosystem utilizes two key elements: the EOS.IO and the EOS tokens. To draw a parallel, EOS.IO is akin to the operating system of a computer–it manages and controls the EOS blockchain network. EOS.IO uses blockchain architecture that is built to enable vertical and horizontal scaling of decentralized applications. The EOS token is the cryptocurrency of the EOS network.
A developer simply needs to hold EOS coins, instead of spending them, to be eligible to use network resources and to build and run dApps. A token holder who is not running any apps can also allocate or rent his bandwidth to other participants who may need it.
EOS achieves decentralized governance utilizing peer-to-peer terms of a binding contract among its participants, referred to as its “constitution,” theoretically similar in many ways to the governing documents established by nation-states. According to the EOS whitepaper:
The EOS techno-society is so ordered mutually through technological and social relations.