EOS.IO was introduced in 2017 as a blockchain protocol under the administration of a native cryptocurrency EOS. The EOS.IO platform was established by a private company called “Block.One” and launched as open-source software on Friday 1st of June, 2018 for extensive distribution of the native cryptocurrency at the launch of the blockchain and approximately one billion tokens were distributed as ERC-20 tokens by “Block.One.” This provision of this distribution was to enable anyone to launch the EOS blockchain once the software starts running. The CEO of block.one, Brendan Blumer, pronounced that block.one would support the EOSIO blockchain with about over one billion USD in funding from the token sale and ultimately block.one raised about over four billion USD to support the blockchain during the Initial ICO (Coin Offering) period.
The protocol follows most of the components of a real computer as well as the hardware Central CPU (Processing Unit) and GPU (Graphics Processing Unit) for effective processing, Local RAM Memory, Hard-Disk Storage (HDS) with the computing resources distributed equally among EOS cryptocurrency holders.
The EOS.IO Operation Methodology
EOS.IO operates as a Smart Contract Platform and Decentralized Operating System with the objective of deploying an Industrial-Scale Decentralized Applications via a Decentralized Autonomous Corporation Model (DAC). The smart contract platform intends to eradicate transaction fees and also conduct millions of transactions per second.
The Goal of the EOS.IO Platform
EOS.IO Platform primary objective is to run a Decentralized Application hosting a Smart Contract competency and Decentralized Storage of enterprise solutions that solve scalability issues of blockchains such as Bitcoin and Ethereum and equally terminating all fees for users. ESO.IO achieves this target through the application both multi-threaded (able to run in multiple computer cores) as well as applying delegated proof-of-stake for its consensus protocol. It also intend to be the first Decentralized Operating System (EOS.IO) that provides provides a development environment for decentralized applications like Steemit, a social network with monetary incentives and BitShares, a decentralized cryptocurrency exchange (DEX).
EOS.IO Storage is a proposed decentralized file system designed to give everyone the ability to permanently store and host files accessible by any web browser. Unlike some other proposed alternatives, there would be no upfront fee or ongoing charge for storage or bandwidth on EOS.IO Storage aside from a completely refundable deposit. Users must hold tokens while they need storage and bandwidth and may sell tokens when storage and bandwidth is no longer required. Built on the InterPlanetary File System (IPFS) and the EOS.IO software, EOS.IO Storage will be a service provided by block producers for those who hold tokens on a blockchain that adopts the EOS.IO software. The block producers would be incentivized to replicate and host these files, allowing anyone with an Internet browser to access them. With EOS.IO Storage block producers could provide high bandwidth serving of videos, music, images and for applications like Steemit and compete with services such as Amazon’s AWS while utilizing an ownership, rather than subscription, model.
EOSIO adopts a free-market approach to allocating scarce resources to their highest purpose. To facilitate this market, the EOS.IO system contract allows users to buy RAM from the system and sell RAM back to the system in exchange for the blockchains native tokens (e.g EOS). This provides liquidity in the RAM market while facilitating price discovery. The less unallocated RAM available to the market maker the higher the market maker prices of the remaining RAM. The algorithm used for this market maker is known as a Bancor Relay. A Bancor Relay does not set the price of RAM but rather offers to buy and sell at previously established market rates. Anytime the current market rate is different than the current price offered by the Bancor Relay traders will buy or sell RAM pushing to closer to the market determined price.