Understanding EOS is a book by Toju Kaka. Toju Kaka is the founder of EME Networks(EmpowermeEOS) and a seasoned blockchain and cryptocurrency expert.
QryptoCentral did a detailed overview of the book chapter by chapter. Lets take a look.
Chapter One: What is EOS?
The first chapter provides an introductory walk into what EOS is in the real sense.
What is EOS?
EOS is a cryptocurrency and blockchain for building decentralized applications, EOS was created by block.one.
EOS means different things to different people, which includes:
- Epic Operating System(EOS): due to its robust decentralized applications.
- Enterprise Operating System(EOS): enterprises can build applications on the EOS blockchain.
- Earth Operating System(EOS)
What do people really mean when they say EOS?
- An Operating System: The EOS.IO software is an operating system for developing decentralized applications and creating blockchains. The EOS.IO software has been used to create other blockchains like Worbli, Telos, BOS, WAX, etc.
- EOS is a Blockchain: In order to understand how EOS is a blockchain the writer defined blockchain as a database or a ledger that records data in a decentralised way and secures it with cryptography. EOS blockchain possesses all the features of a blockchain due to the fact that transactions on the EOS blockchain are transparent, records stored on the EOS blockchain are immutable and the EOS blockchain is decentralized and open source.
- EOS is a Cryptocurrency: In the the EOS ecosystem, EOS Token is the native cryptocurrency. It is an utility token.
Chapter Two: EOS has Super Powers
In this chapter the writer delved into what makes EOS stand out amongst its competitors and the five major problems EOS was created to solve:
- Transaction Speed: EOS is fast as flash. A transaction on the Bitcoin network would take 60 minutes before it gets confirmed. On Ethereum, it takes 6 minutes. Transactions in EOS gets confirmed in 0.5 seconds. This is faster than Ethereum (6 minutes) and Bitcoin (60 minutes). EOS utilizes a consensus method called Delegated Proof of Stake (DPOS) this is what makes EOS as fast as flash.
- Transaction Fees: Transactions on the EOS network are free with zero fees. EOS is designed in a way that transactions are free for users but dApps bear the cost by staking EOS resources (RAM, CPU and Bandwidth) for the users.
- Easy to Use/Understand: The writer’s account name(wallet address) on EOS is tojukaka1234. While on the other hand his bitcoin adrress looks like this 3NhsK3f5v8718fXwA3RVEJor83beA3uHiP. EOS made blockchain simpler to understand and easier to access and use.
- Scalability: In contrast to Bitcoin or Ethereum, EOS suggests consensus over events instead of consensus overstate. It means that in order to keep the blockchain up-to-date, the nodes verify events and not the state of the entire blockchain. As a result, a higher number of transactions per second can be executed.The ultimate goal of EOS is to build a network for industrial-scale applications to be able to process millions of transactions.
- An Economic System: The EOS economic system is based on a 5% annual inflation of the initial Total Supply of 1 Billion EOS Tokens which amounts to 50,000,000 EOS Tokens created yearly. 1/5 of the 50,000,000 EOS Tokens are used to reward block producers while the remaining 4/5 is reserved for worker proposers. EOS also created a Billion Dollar VC fund as part of its Economic system to invest in projects that will bring value to the EOS ecosystem.
Chaper Three: dApps
In this chapter the author did a great job explaining what decentralized applications are generally, their characteristics, the different types of dApps available and why EOS.IO is important in regards to dApps development.
What are dApps?
Decentralized applications are applications that run on a distributed computing system. DApps run on a
peer to peer network with no central entity that can control their database as it is replicated across many servers.
Why are dApps important?
dApps are decentralized in nature and not controlled by any central authority or government. Decentralized applications are easier to monetize and incentivize its users because dApps use blockchain technology. This can aid money transfer worldwide. By using the blockchain and its own cryptocurrency token, dApps can speed up money management, transfer and lending. DApps also play a significant role in removing third parties through the use of smart contracts. Decentralized applications are more secure.
The administrators of a decentralized app will not be able to tamper with the database because it is public, transparent and operates a peer to peer network structure. Hackers from outside will not be able to succeed in attacking decentralized applications because there are no central servers to attack.
Types of dApps
- Money Management dApps
- Business Process Management dApps
- Gaming dApps
- Social Media dApps
- Decentralized Exchange(DEX)
- Decentralized Autonomous Organization(DAO)
Why is EOS.IO important for dApps?
The author believes EOS is the backbone and bedrock of decentralized applications and dApps are the applications of the future.
Chapter Four: Starting Out on EOS
This chapter walks you through the process of getting an EOS account, why you should get an EOS account, how to get an EOS account and most especially what you can do with an EOS account.
How to get an EOS Account?
There are two choices here you can either go for a paid EOS account or a free one. To get a paid account you buy one at tokenpocket.pro or for a free account you can check out any of the decentralized applications on the EOS network offering free accounts.
Why should you get an EOS account?
An EOS account provides you with direct access to the EOS network in order to access the products and services within the EOS ecosystem.
What are the benefits of getting an EOS account?
- You can send money in the form of EOS tokens to anyone, anywhere in the world instantly, with zero fees.
- To access dApps on the EOS network.
- To stake your EOS tokens and earn dividends.
- To receive airdrops from new applications on the EOS network.
- Voting block producers.
Chapter Five: Daniel Larimer
This chapter focuses on the creator of EOS, Daniel Larimer his contributions and experience over the years in the cryptocurrency and blockchain industry.
In 2010, Daniel Larimer raised concerns on Bitcointalk to Satoshi Nakamoto (the creator of Bitcoin). He argued that the confirmation time of 10 minutes for transactions was too long and that a change of the consensus mechanism might help the system to be as efficient as credit cards. However, Satoshi Nakomoto simply replied him with this: “If you don’t believe me or don’t get it, I don’t have time to try to convince you, sorry.”
Daniel Larimer created EOS to address these key problems of slow transactions and high fees associated with bitcoin.
In 2014, Daniel Larimer also had a debate with Ethereum’s founder Vitalik Buterin. Dan’s questions were about the Ethereum’s consensus algorithm, decentralization, management ability, resources and costs, etc. The Ethereum network currently has plans to change its consensus algorithm to Proof of Stake (POS). This issue was also raised by Dan long before it became obvious.
According to the author Daniel Larimer’s contributions in the blockchain space includes the creation of Bitshares decentralized exchange, Steemit social network and he also brought about the idea of a Decentralized Autonomous Community(DAC).
Chapter Six: EOS Block Producers
This chapter focuses entirely on the subject matter block producers, what their roles are in the EOS network and how they get rewarded by EOS.
What are the roles of block producers?
Block producers in the EOS network play the role of validating transactions and updating such transactions to the EOS network. They do so by producing blocks and adding these blocks to the EOS chain (blockchain). Block producers maintain and manage the EOS blockchain.
How are block producers selected?
Block producers within the EOS network are selected by EOS Token holders. EOS Token holders have the power to vote to either promote or demote a block producer(BP) every 0.5 seconds.
The top 21 BPs in EOS are the Major BPs. Each of them take turns in producing blocks. Other BPs below the top 21 are called standby BPs. There are currently over 600 standby BPs and as their name suggests, they remain on standby to replace any major BPs who get demoted. The top 21 BPs get paid. The topmost standby BPs also get paid. The pay is according to the rank. The higher the rank, the higher the reward.
Chapter Seven: EOS dApps
This chapter focuses primarily on decentralized applications developed on the EOS blockchain which includes tools, exchanges, social networks and games.
Popular dApps built on the EOS blockchain includes the following:
Chapter Eight: How to Make Money From EOS?
In this chapter the author analyzed different ways you can make a living utilizing EOS Token and its platform.
The author believes you can make money from EOS in the following
● Airdrops and bounties
● Get Employed
● Create Content
● Coding skills
Chapter Eight: EmpowermeEOS
This is the last and final chapter of the book. Here the author gives an overview of the EmpowermeEOS campaign by EOS.
What is EmpowermeEOS?
EmpowermeEOS aims to empower marginalized youths and teens by giving them EOS tech, education and mentorship so that they can become economically free and contribute positively to their communities.
Final words from Qrypto Central
Understanding EOS isn’t just a book focused primarily on EOS and its platform. The author did a great job exploring other areas of cryptocurrency and blockchain technology outside EOS. If you really want to have the knowledge of what blockchain is, how it works and using EOS as a case study to understand all of these? Then, understanding EOS is your book.
I will conclude with this quote:
The more you know, the more you realize that you don’t know.
The book is available on amazon for $39.9 https://www.amazon.com/dp/B083QXZ6CH.
But people can get it for a 75% discount ($10) on Whatsapp https://wa.me/2348131940093?text=Hello%20Toju%2C%20it%27s%20a%20pleasure%20to%20meet%20you.%20My%20name%20is%20