EOS is a decentralized protocol built to allow the deployments of Decentralized Applications (Dapps) and the design of smart contracts. Created by Daniel Larimer and Brendan Blumer, EOS was launched in January 2018.
The platform uses the Delegated Proof of Stake as the consensus algorithm (DPoS). This means that coin holders use their funds to select the validator for the next batch of transactions. The validating nodes then distribute the rewards to those stakeholders who contributed to their pool of coins.
To find out more information about Dapps, check out this article about what Dapps mean and how to begin.
EOS has the potential to run thousands of transactions concurrently due to the architecture of the DPoS algorithm. The proposition was so attractive that the biggest ICO to date was launched by the EOS team, raising an incredible 4.1 billion US dollars.
It goes without saying that the EOS foundation has deep pockets to support further development. This has made an attractive platform for many projects, and we will review some of them in this article.
The EOS organization has a presence in Lagos via EOS Nigeria. The group actively organizes meetups and talks around the Blockchain subject in Nigeria and Africa at large. They also work as validators in the EOS network and actively educate the people on Blockchain and the technology.
Carbon is a FIAT money ramp hosted in the EOS network. It allows users from all over the world to make individual purchases of cryptocurrencies using credit cards. They have an instant clearance process for each asset purchased, which means there is no need to wait for block confirmations before the ownership is verified.
They do require KYC for amounts larger than 150 USD. It is a very easy-to-use gateway for the crypto economy, and it generally has lower fees than traditional exchanges because it is hosted in the EOS network.
Since it doesn’t require KYC for small purchases, this is a great way for Nigerians to buy cryptocurrencies. The fees are minimal compared to traditional exchanges.
This platform is an aggregator of decentralized exchanges to provide liquidity at the best prices. Basically, Totle is connected to all the top DEXs in any network, mainly those on Ethereum. If an order for a swap goes through their service, they search for the best price available in all the different DEXs and provide the top choices.
It also provides insurance for up to 600 Ether in each transaction if anything goes wrong during a swap. Totle is connected to Fulcrum, Aave, Compound, Curve, Bancor, Uniswap, and many other DEXs. It is an excellent tool for all those who prefer to trade using Decentralized Exchanges.
The algorithm of Totle continually monitors all of these DEXs search entries for the best prices that are updated continuously.
Equilibrium is the MakerDAO of the EOS ecosystem. It is the main platform for the issuance of the EOSDT stablecoin. Much like DAI, EOSDT is not backed by dollars held in an account, like in the case of Tether. EOSDT is created when a user deposits EOS coins in the Equilibrium smart contract to receive EOSDT with a value that hovers around one USD.
The model uses over-collateralization, which means that to get 100 EOSDT the user has to deposit more than 100 dollars of EOS tokens. This is done to keep the value of the token stable against the USD. The collateral required is around 130% to 170%, which seems like a lot, but DAI demands 390% at a minimum. So, it is clear that EOSDT is a cheaper proposition.
Equilibrium has its own governance token called NUT (Native Utility Token) that is used for governance. It is used for voting, similar to MKR for MakerDAO. There are currently 2,885,107.85 EOSDT in circulation in the world. It is available on Bancor, Findex, Yolo, and NewDex.
As the gas fees in Ethereum grow due to network congestion, stable coins on the platform become expensive to use. EOSDT is an excellent alternative to a token like DAI since it provides the same service for those looking for a non-dollar backed stable coin.
The lower fees in EOS and faster confirmation times are also two major advantages of EOSDT over any Ethereum based token.
Karma is a social network created to manage social goods on the EOS network. It uses its native token, also named KARMA, to push people to do good actions for other members. Users post their good deeds on the platform, and the more upvotes they get, the more tokens are given to the owner of the account.
The token KARMA is traded in many exchanges deeply connected to the EOS ecosystem. These are Yolo, NewDex, BigOne, Hoo.com, Bancor, and WhaleEx. In its design, the KARMA token is burned when it is used to boost a post. This means that even though tokens are issued continuously, more are burnt in the platform, so the token value is deflationary.
For those Nigerians looking to do good while gaining passive income, Karma is the perfect platform. It supports an active community of content creators who want to make a difference.
Bancor is an on-chain exchange protocol that enables the swapping of tokens with the use of smart contracts. It works on the EOS network and the Ethereum platform.
They use interactions between smart contracts to determine the price, instead of the regular buy sell calls on regular exchanges. It can support 100 tokens as it currently stands now. The service is accessible through their Bancor Wallet directly connected to the platform.
The native token of the platform is Bancor Network Token (BNT). It is used as the intermediary asset when a smart contract is converting a pair of tokens during a swap. This means all of the tokens supported on Bancor have an equivalent value in BNT, which is then used when converting one into the other.
Sense Chat is the messaging system of the EOS network. Sense chat runs on-chain, which offers massages on the platform the same level of protection as transactions made on EOS.
It is available for Android and IOS, and it is also able to process transactions for EOS coins and tokens native to EOS. It also offers the same anonymity level granted by the network to private messages made via the app.
An EOS oracle that can be integrated into smart contracts to gather accurate information from outside the network. It issues certificates for all the information it provides and is easily integrated into any system. This means Provable is protocol agnostic, it can be used for development in Ethereum, Tron, Stellar, and virtually any other Blockchain out there capable of hosting smart contracts.
The DPoS system has some advantages over the traditional PoW blockchains. EOS is an excellent example of the implementation of this type of Blockchain. It has provided faster confirmation times and lower fees per transaction, making it the perfect alternative to Ethereum in the Nigerian market.
As we can see, EOS has a vibrant ecosystem of services, which has made one of the most dynamic platforms, even with just two years of existence. Investing in EOS tokens is a good investment option for any crypto trader.
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