EOS Cryptocurrency

Updated on May 2, 2024
Article byRutan Bhattacharyya
Edited byAshish Kumar Srivastav
Reviewed byDheeraj Vaidya, CFA, FRM

What Is EOS Cryptocurrency?

The EOS cryptocurrency (Electro-Optical System) is a digital asset that runs on the EOSIO network, its own blockchain. Making payments with this token does not involve any transaction fees. Moreover, EOS serves as a payment system and is responsible for governance, on-chain staking, and economic activities on the EOSIO network.

EOS Cryptocurrency

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This cryptocurrency is a utility token, providing holders with storage and bandwidth on the blockchain. Those staking EOS tokens stabilize the cryptocurrency while the others transact and mine. Users staking tokens can participate in different processes. Moreover, they can vote and decide to alter the software’s rules or participate in the EOSIO blockchain’s validation procedure.

Key Takeaways

  • EOS cryptocurrency is the native token of the EOSIO blockchain network, a decentralized platform utilized to run and develop dApps or business applications on an industrial scale. EOS acts as a payment system. 
  • This cryptocurrency has various benefits. For example, it is a utility token, and it does not require senders or receivers of the tokens to pay transaction fees. 
  • This widely supported digital asset is easily tradeable via popular cryptocurrency exchanges. Individuals must follow the latest EOS cryptocurrency news if they plan on investing.
  • The SEC settlement involving Block.one makes long-term investors skeptical about this cryptocurrency.

EOS Cryptocurrency Explained

EOS cryptocurrency is the native token of the EOSIO network, a blockchain network that aims to develop decentralized applications (dApps) on an industrial scale. It enables individuals to send and receive tokens without paying any transaction fees. Instead of charging such fees, this cryptocurrency rewards the miners with freshly created EOS tokens, which means that built-in inflation exists in the EOS ecosystem.

EOS is like Ethereum; the former’s blockchain allows other decentralized applications and smart contracts besides its own currency. That said, unlike Ethereum, EOS does not require users to pay transaction cost. The launch of EOS officially took place in June 2018.

Note that the EOSIO blockchain and software power other digital currencies like Everipedia. However, the most noteworthy cryptocurrency on the blockchain is EOS.

At its core, this cryptocurrency aims to offer a user-friendly and stable architecture for deploying and developing decentralized applications. Unlike conventional cryptocurrencies like Ethereum and Bitcoin, this digital currency offers enhanced efficiency and capabilities.

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How To Mine?

Contrary to Ethereum and Bitcoin, EOS does not involve using a proof-of-work (PoW) mining system, where one can earn by running a mine. Instead, this cryptocurrency depends on a mechanism known as delegated proof-of-stake (PoS).

This system depends on block producers whom the network votes on to manage the operations of the blockchain on its behalf. Although this centralizes some operations more than the competitors, it also allows for improved transaction volumes and scale than a few others. Additionally, this is more environmentally friendly because fewer computers are at work, consuming less energy to ensure the network keeps running.

That said, one must note that there might be a conflict of interest since the for-profit blockchain software company, Block.one, has significant influence over who works and receives new EOS tokens as a payout. The organization is a major owner of the tokens. Therefore, it gets the highest votes concerning future block producers.

How To Trade?

Individuals can trade this cryptocurrency via any trustworthy cryptocurrency exchange. Most exchanges support this digital asset. Hence, one can purchase EOS tokens easily. That said, people must note that if they wish to buy these tokens, they must have a crypto wallet. Since this is a well-supported cryptocurrency, there is an extensive range of hardware and software wallets available to traders.

A few examples of cryptocurrency exchanges that allow one to trade EOS tokens are Binance, Coinbase, and Kraken.

Note that before engaging in buying and selling this cryptocurrency, one must ensure to stay updated with the latest EOS cryptocurrency news.

Examples

Let us look at a few EOS cryptocurrency examples to understand the concept better. 

Example #1

Suppose Sam is a crypto user. He wants to make a payment using EOS cryptocurrency tokens to David in return for certain services availed of previously. Within seconds of executing the transaction, David received the tokens in his cryptocurrency wallet. Sam and David did not have to pay transaction fees to send and receive the tokens.

Example #2

EOS cryptocurrency is on a downtrend in September 2023, as it consolidates within the range of $0.51 and $0.64. The price of this digital asset follows the 50-day exponential moving average and falls. This shows that the bears are in control.

EOS Cryptocurrency Graph

A breakout or breakdown may occur from the consolidation, depending upon the sentiment and trading volume. The consolidation’s breakdown may add increased selling volume, and, as a result, the EOS cryptocurrency price may fall to lower levels. On the other hand, the breakout of the consolidation may indicate optimism concerning the price trend and the buyers in the market may aim to take over that trend.

Pros And Cons

Let us look at the benefits and limitations of this cryptocurrency.

Pros

  • It is not associated with any transaction fees. Hence, anyone can perform transactions involving EOS tokens.
  • Individuals can use this cryptocurrency to avail of the services available on the EOS network.
  • EOS token holders not running any app can rent or allocate their bandwidth to different participants requiring it.
  • This cryptocurrency’s network is much more scalable when compared to any other blockchain based on Ethereum.
  • As noted above, EOS is a utility token; it gives users storage and bandwidth on the network.

Cons

  • Block.one was involved in a Securities and Exchange Commission (SEC) settlement. This is not good for the cryptocurrency as it raises suspicions in long-term investors’ minds.
  • The token is subject to significant fluctuations owing to the volatility in the cryptocurrency market.
  • A lack of decentralization is one of the main drawbacks of the EOS network., which raises concerns in crypto investors’ minds.

EOS vs XRP

Individuals new to the cryptocurrency market often have confusion when learning about the meanings of XRP (Ripple) and EOS tokens. To understand each of them fully, one must know their distinct features. In that regard, let us look at their critical differences.

EOSXRP
In this case, there is no transaction fee. Individuals do not have to pay traditional transaction fees when using XRP. Instead, they need the sender of the tokens to destroy a certain amount of XRP for each transaction. 
One can mine EOS. Individuals cannot mine XRP. 
EOS does not have any maximum supply limit. The overall supply of XRP cannot exceed 100 billion. 

Frequently Asked Questions (FAQs)

1. Is EOS crypto a good investment?

Like every cryptocurrency, EOS trading involves risk. Individuals interested in this digital currency can consider checking the EOS cryptocurrency price regularly by utilizing different trackers available on exchanges. Whether or not this cryptocurrency is a good investment depends on various factors, such as one’s financial goals, risk appetite, and investment time horizon. Typically, experts suggest that anyone looking to invest in EOS or any other cryptocurrency should consult a financial advisor to understand the risks and returns associated with investment.

2. Will EOS recover?

At the time of writing, EPS price has dropped close to 50% and is trading below the $1 mark. Although it has the potential to recover, one cannot say for sure if investors can recover losses as there’s a lot of uncertainty associated with the cryptocurrency market.

3. Is EOS cryptocurrency an Ethereum killer?

People often refer to EOS as an Ethereum killer as this digital asset targets the most significant flaws associated with the Ethereum ecosystem, such as functionality, usability, and scalability.

This article has been a guide to what is EOS Cryptocurrency. Here, we explain how to mine and trade it, its examples, pros and cons, and differences with XRP. You may also find some useful articles here –

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