EOS is Blockchain developer Daniel Larimer’s third major product, following the relative success of Bitshares and the phenomenal success of Steemit EOS is intended to be the ultimate blockchain development platform, some are even making the claim EOS will be an ‘Ethereum Killer‘.
This is the opening paragraph of the EOS.IO whitepaper which simply describes the purpose and goal of EOS.
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.
On paper this all sounds very impressive, however as of yet, that is all this is amazing blockchain proposal is, on paper. The EOS ICO has been running for sometime now and if it runs for the initial intended term it still has another 277 days to run at time of press. The ICO is uncapped and has some of the most concerning ‘terms and conditions‘ seen so far in any ICO.
The EOS.IO Initial Coin Offering (ICO) has been one of the most talked about ICO’s ever, firstly the ICO is uncapped, second the ICO was set to run for almost an entire year – the idea being that the market will establish it’s worth. The third reason though is what raises the most eyebrows – those who participate in the ICO are not given EOS tokens upon the EOS blockchain, they are given EOS ERC-20 tokens upon the Ethereum Blockchain, these tokens (in theory) can then be swapped for actual EOS tokens once the EOS blockchain is active.
However, the terms and conditions makes a few statements which are raising doubt over whether these ERC-20 tokens are actually worth anything at all:
EOS TOKENS HAVE NO RIGHTS, USES OR ATTRIBUTES.
The EOS Tokens do not have any rights, uses, purpose, attributes, functionalities or features, express or implied, including, without limitation, any uses, purpose, attributes, functionalities or features on the EOS Platform. Company does not guarantee and is not representing in any way to Buyer that the EOS Tokens have any rights, uses, purpose, attributes, functionalities or features
NOT A PURCHASE OF EOS PLATFORM TOKENS.
EOS Tokens purchased under this Agreement are not tokens on the EOS Platform. Buyer acknowledges, understands and agrees that Buyer should not expect and there is no guarantee or representation made by Company that Buyer will receive any other product, service, rights, attributes, functionalities, features or assets of any kind whatsoever, including, without limitation, any cryptographic tokens or digital assets now or in the future whether through receipt, exchange, conversion, redemption or otherwise.
Now, its understandable why these two statements have raised so many concerns in potential investors of EOS, investors are basically giving money to a development team with nothing whatsoever given in return other than a token which is clearly stated as worthless and NOT redeemable for actual EOS tokens.
However, what I personally see here is a very carefully written set of conditions to cover themselves for any potential future legalities that could arise from the ICO. What this ICO does that other ICO’s don’t is state the possibilities that could occur and make it clear that if such possibilities do occur investors will potentially loose their funds.
The only reassurance that means anything in this brave new world of ICO’s and Blockchain is Transparency, we want to see that progress is being made and when it isn’t we want to know why. This is the most important part for any new development which has relied so heavily on Investment funding.
For anyone that has followed Dan Larimer’s career you will be aware that he is very public about his intentions and what he is up to.
Daniel Larimer is probably the most solid reason that EOS has any public confidence whatsoever, his track record is good and is intentions appear valid.
The article which was entitled The Dawn Of EOS was released in early September and for anyone feeling a little unsure about this project and where it was going it may boost your confidence a little.
Below are what we feel the most important parts of the the post to take note of:
In the EOS.IO Technical White Paper, we proposed the EOS.IO software as the dawn of a new era of blockchain computing. The EOS.IO development team has spent the summer working very hard. Summer is over and the development of the EOS.IO software is ahead of schedule. It can now be used with distributed network configurations. We have a lot of exciting EOS.IO software developments to report so be sure to read to the end!
Proof of Performance
Now that the EOS.IO software can be used in distributed network configurations we can benchmark its performance. Our internal testing shows that the software is currently able to sustain over 10,000 single threaded transactions per second on a multi-node network. This puts it on track to support over 1 million transactions per second on machines with over 100 CPU cores.
Advancements in Design
Developers will be excited to learn that our latest architectural software improvements make it easier than ever to build parallel applications that communicate with each other.
Shared Database Access
We have now enabled one application to read the database state of another application without requiring complex asynchronous communication.
User Local Storage of Application Data
In addition to supporting read access across accounts, applications can now store data on other accounts. This means a currency contract can store the balance on individual user accounts rather than within its own scope.
Inline Message Passing
It is now easier than ever to send a message to another application and know with certainty that it will be accepted and validated. An application can generate any number of additional messages to append to the end of the current transaction.
Deferred Message Passing
Sometimes you don’t know if a message is valid or whether there is enough time left on the clock to execute inline with the current transaction. Other times you need to send a message that accesses data outside the scope of the current transaction. In this situation applications can request the block producers schedule a message to be delivered in the next cycle or a future block. If it is valid then your application may be notified; if it is not, then it will never be scheduled and your application can clean up after a timeout.
Unlimited Horizontal Scaling
The latest design advancements in the EOS.IO software gives developers high single-machine performance; businesses can scale to a million transactions per second before requiring a more complex asynchronous architecture.
The Road Ahead
In September of this year, block.one will be releasing EOS.IO Dawn 1.0 which should be stable enough and well documented enough for anyone to launch their own test network upon which they can build and deploy their applications. EOS.IO Dawn 1.0 will be the first pre-release of our EOS.IO SDK (Software Development Kit).
One More Thing….
For the first time, developers will be able to create and deploy a decentralized application and web interfaces without having to worry about bandwidth and storage costs, or even hosting any servers themselves; this enables a host of new innovative decentralized business models, such as a decentralized YouTube, Soundcloud, or other storage-intensive projects.
In addition to computational bandwidth, native EOS.IO software-based blockchain token holders will now have access to free cloud storage, hosting, and download bandwidth via IPFS / HTTPS; this access can be used without consuming or transferring tokens.
As I said before there is more to the post than what we have published above, you can read the full print here.
So as with anything in the ICO market there are zero guarantees that your investment will be worth anything in the future, you have to accept when investing that your investment however large or small it maybe, could potentially be lost and to never return. So please never invest more than you can afford to loose, this is crucial.
EOS.IO is on the face of it a risky investment, their is no product, no clarification to exactly what you get in return for your investment – if indeed you get anything at all and with a year long, capless ICO who knows what these tokens are likely to be worth by the end of the distribution.
But historically Daniel Larimer has produced good solid platforms, he is not, or at least his previous behaviour does not suggest he is an intentional scammer. His previous developments are solid and probably two of the best blockchain technologies in existence from a developers point of view.
If we are to believe their latest update the project is ahead of schedule and from what they tell us it going to be an impressive platform.
If you have some spare Ethereum or Bitcoin kicking around that you can afford to loose than this maybe a good one to take a risk on, the value of the tokens are currently very low as confidence in EOS itself has been waning of late due to some of the reason mentioned earlier in this article, but also because of the recent news from China, banning ICO’s.
Currently with a market capital of $242,446,269 (at time of press) EOS has a lot of room to grow and when you consider this valuation is based on a development project that currently has no product and no blockchain. If EOS never produce anything (unlikely) then your tokens are worthless, however, if EOS releases there promised blockchain platform and it is the all singing, all dancing beast of a platform their whitepaper suggests then these tokens could quite literally ‘go to the moon’.