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What is This Cryptocurrency? EOS

Photo by David McBee on Pexels.com

With the creation of Bitcoin, financial technology has accelerated and allowed for the exploration ofdifferent ideas of what a cryptocurrency should be. New cryptocurrency projects have been created since the creation of Bitcoin. Ethereum was the next cryptocurrency that was created after Bitcoin which allows for many functionalities beyond storing value. Ethereum allows for the ability of different projects to be created on top of the Ethereum blockchain providing for the possibility of new websites or programs built on the block chain. EOS acts similar to Ethereum in the overall big picture.

EOS is a block chain project that allows for the creation of decentralized applications on the blockchain. It creates something new in the sense that its main purpose is not to hold value and offer a store of value for any transaction, but the coins are used to power the network that allows for the creation of de centralized applications. EOS is capable of developing smart contracts similar to Ethereum. By developing smart contracts, individuals can set a future date for the completion of a specific transaction such as the buying of a vehicle, yacht, or island or the creation of an application.

EOS allows for the creation of decentralized applications which are also something different from the traditional applications. Decentralized applications allow for individuals to use applications that are not owned by one specific company or individual but are decentralized. Like Bitcoin, no one person owns all the network or Bitcoins or the ability to use them, rather the block chain is operated by many individuals. This allows for the block chain to remain intact. This allows for the block chain to have more stability.

Instead of being a proof of work coin, EOS is a proof of stake coin. There are rewards given when an individual that holds EOS uses the coins to stake. The rewards can be a certain percentage of the amount of staked coins. The purpose of staking is to allow for the network to rewards individuals that are using their coins to power the network. Proof of staking also allows for individuals to not use as much electricity as proof of work coins do.

While every cryptocurrency has positives and points of improvement, EOS is a new project that seems to want to revolutionize cryptocurrencies. The scalability of the project can be one of the points that can be improved upon as any new cryptocurrency project can find that scaling can be difficult especially with an influx of new users. EOS can be a top crypto project if upgrades continue to improve the block chain.

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