The evolution of blockchain, how EOS is reinventing blockchain.
Why EOS? Is the EOS blockchain merely just a new flavor of the month, no different from really any other blockchain currently in the market? Or is it truly the new revolutionary masterpiece of the cryptocurrency industry? If you’re like me when you first entered the blockchain industry, you listen to many colorful slogans such as “revolutionary technology destined to change the world,” “the new improved second version of the internet,” or “the Internet of things the internet of money.” Overall, these things can become very confusing for the average consumer, especially if you happen to be new to the cryptocurrency space in general. So, in this video, I will attempt to answer a few significant questions that every long-term EOS investor should have asked themselves by now, the first of these is why blockchain, followed by why EOS.
So why blockchain? When we talk about blockchain, we have to understand what it is that separates blockchain from any other technology out in the marketplace today. Blockchain, at its core, is ultimately a decentralized database, the Information technology industry is filled with all forms of database systems, but there are very few decentralized solutions to database storage systems. It is desirable to want decentralized storage of data, because when you look at companies such as Facebook, YouTube and many others that store mass amounts of their users’ information, individual rights can be often left behind when corporate profit motives are involved. Some might say, “but how secure or private can it possibly be considering that everyone can see your transactions if they have your crypto address.”
I would answer by saying that first off, any sense of privacy that you have in the traditional system is an illusion. Banking Institutions, government institutions, and even corporate institutions have access to your information weather you know about it or not. To the people at the top, you are an open book, likewise anyone that can access the databases your information is stored on, legally or not. Furthermore, there exists no genuine incentive for such institutions to reveal to its user base what is knows, and when it knew it, making it increasingly more difficult for average citizens of any country to hold the people that have access to their data accountable for their mistakes. In fact, the average consumer is completely powerless and ineffective in their ability to get any sort of justice from highly-placed influential CEOs, politicians, and chairmen of financial institutions. At best, the average citizen will simply be shown a low-level or middle-ranked scapegoat, while the real perpetrators getaway free and clear.
There were no real alternatives to this until the first generation blockchain industry came along, but no new technology is ever without its issues, and the price paid for the decentralization was significantly slower transaction speeds. But overtime, the technology was improved, and newer second generation blockchains came into the marketplace and there were notable increases in transaction speeds; new concepts such as programmable money, smart contracts, and decentralized-autonomous-organizations were even introduced. But it was still very slow in comparison to centralized companies like Visa or MasterCard. So as time went on, the industry continue to evolve, and eventually, 3rd Generation blockchains began to appear; many of them being considerably faster than their predecessors, but the issue was that many of them sacrificed decentralization for increases in transaction speeds.
Which leads me to my next topic, why EOS? EOS is a blockchain that uses a decentralized proof-of-stake system, with voting participants electing who will produce blocks for the EOS blockchain. The EOS blockchain is special, because it uses a decentralized two-layered solution combined with its innovative approach to scaling, using inter-blockchain communication which would allow for a fully integrated communications between the EOS main-chain and its side-chains, effectively allowing the EOS blockchain to scale indefinitely. This gives the EOS blockchain a great amount of Speed without sacrificing its decentralization.
But in fairness, no human system is ever perfect, and for every solved problem, a new one often appears to take its place. Not even the EOS blockchain is immune to this universal truth. I, myself, hold the vast majority of my crypto holdings In the Eos blockchain and consider myself a lifetime EOS core holder. And because I’m so bullish on the future of the EOS blockchain, it’s very easy for me to overlook that many are not accustomed to the eccentricities of volatile human markets within the greater crypto community. Furthermore, many more are new to the crypto space, and are not fully aware of the true differences that separate the EOS blockchain from others.
Yes, it is true that EOS has some issues to overcome, as that is true for every blockchain currently operating today. Some EOS holders may be legitimately concerned over issues such as overpriced ram due to ram trading, preventing some developers from launching decentralized applications. Some others may be concerned about the voting system not working as intended, and still, others may be concerned about potential future abuse with the worker proposal fund. I believe that it is wiser to take a much longer look at these issues, and I’m not overly concerned considering that the EOS blockchain has only been out a few months, I believe that, ultimately, many of the current issues will be worked out, given enough time. I can also see how they might legitimately unnerve some EOS holders.
So, I would say to any EOS holders that are concerned about these issues, you can rest assured, the EOS blockchain is already evolving to meet these new challenges. Some might be concerned about the startup expenses of new potential EOS integrated businesses in future, I would say that we have to ask ourselves an important question as a community, do we collectively believe that business startup expenses should be free or do we believe any new business should have some initial amount of startup cost? And if you believe that it is expensive to start up a business on the EOS system, I would have to ask you in comparison to what? Because every economic system has some sort of startup expenses, depending on the type of company you wish to operate whether it is in the traditional marketplace, or it’s cryptocurrency counterpart. The question we should be asking ourselves is how the EOS blockchain startup expenses compares to its nearest competitors. It’s much more expensive to start a company initially on the Ethereum blockchain or any other, when factoring in operating expenses. Personally, I think a business should always have some sort of start up cost associated with it, after all, the EOS blockchain is not a charity, it’s a tool to help businesses make money or accomplish whatever their agenda happens to be.
Also consider that the EOS blockchain has already taken significant steps to solve its current issues, as far as RAM is concerned, the block producers in particular, voted to add new Ram to the network at a steady rate, which will overtime significantly lower the cost of RAM, also we must not forget that Ram speculators are doing the EOS network a great service, the 1% overall trading fee will prove to be very useful to the growth of EOS networks long term, either the EOS network will decide to continue to destroy all incoming Ram trading fees, which benefits the EOS blockchain by causing deflation and defacto, increasing the value of the entire networks holdings, or the community will use it as a means to incentivize stakers. And for the record, I am very much in favor of the ladder proposal, because of the change in the token economy that will likely occur when incentivizing long-term holders of the EOS network.
If you consider that EOS developers are the lifeblood of the EOS Network, then the long-term holders are the foundation or marrow to the EOS blockchain. Ultimately, they collectively have control over the prices; whether they are relatively stable or sporadic. It ultimately benefits everyone in the network if the EOS token prices are relatively stable. Furthermore, it is a very powerful incentive to attract new investors into the EOS ecosphere while simultaneously significantly lowering the amount of EOS available for purchase, I am no economics major, but I think we all know what happens when you have low supply and high demand.
As for the second issue with the voting system, I ultimately believe that Dan Larimer resource-exchange-proposal, AKA Rex, holds the key to addressing this issue as well as many others. I’m sure I’m not revealing any new information here, but the resource exchange rental system will dramatically change the token economics of the entire EOS blockchain for the better.
It is a brilliant proposal in my opinion, this proposal solves all the key issues currently in the EOS blockchain, it first addresses the issue with voting by incentivizing token holders to vote for around 21 block producers, this greatly incentivizes the big whale voters to spread out their sphere of influence rather than allowing them purposely limit their votes to favorite block producers.
Next, this will likely increase voter turnout of average EOS holders greatly by financially incentivizing them. Human nature can be a very fickle thing, human beings will often gravitate towards the easiest and least inconvenient option available to them personally, but this behavior changes significantly when financially incentivized. Case and point, look at Singapore for example, before they had home ownership, their government built condo-styled housing, but when they did not allow home ownership, they discovered that the renters did not take care of their properties. And when they allowed them to own the properties that they were living in, they noticed a dramatic Improvement in their attitudes as well as the upkeep of the units. My point is that people have to be financially incentivized to have a sense of ownership. A n increased sense of ownership will serve the EOS blockchain well in future, incentivized EOS holders will be much more likely to take care of a blockchain that they see as their own, and are less likely to be indifferent about the upkeep of the system.
As far as the worker proposal fund is concerned, there was a recent proposal made by Dan Larimer, proposing that we should nullify the worker proposal fund. I don’t really have much of a bias on this matter either way, for I can see the benefits to both sides of the debate. But in my opinion, I think the main issue is not whether having a worker proposal fund is a good idea or bad idea, but whether we can have a worker proposal fund without financial abuse. I’m not sure that completely removing the worker proposal fund is the right decision, but I will say there is a strong argument to be made for significantly reducing the amount added to the worker proposal fund yearly. In my opinion, I think if we reduce the fund from 4% down to 0.1%, this would be roughly a little over the amount that a top block producer makes, and this still allows for a significant degree of spending towards future proposals, and will make the worker proposal fund a less tempting target for abuse by potential opportunist. At current token rates this, should work out to be something along the lines of 1 million tokens yearly; It also has the additional benefit of reducing the current rate of inflation. As the token price for EOS rises, the funds will naturally increase in value as well. This would be a happy medium to both sides of this debate.
And as for my final issue topic, the Dan Larimer resource exchange proposal also addresses something very important to all EOS holders, especially the decentralized application developers, by introducing the new protocol level EOS token rental system. This will significantly lower the cost of doing business for application developers, massively increase their access to the EOS blockchain resources, and the monthly payment styled system can be easily integrated into any existing business structure, especially when you consider that monthly payment plans are an industry standard. Almost everyone wins with this new system, and there is very little downside and much to be gained, ultimately, I believe that this is exactly what the EOS blockchain needs to break away from the pack of Bitcoin-led cryptocurrencies.
In the final analysis, when you look at the true state of affairs of the blockchain industry, observe all of the development that is happening within the EOS platform, combined with the fact that many blockchain developers are beginning to emigrate over from other blockchains into the EOS platform, then consider the facts that more and more prominent investors are investing directly into EOS, and other EOS related businesses; also consider the higher degree of organization, as well as robust-discussion and debates amongst the community members. I would say that the EOS blockchain is very healthy indeed. And to any EOS holder, I would strongly caution you to stop paying attention to price, the current price of a token is not always representative of its true value. Think of how many people in the first three years of Bitcoin’s existence sold they’re Bitcoin early, because they did not have a long enough view of its true value potential. Think about the guy in 2010 who bought two pizzas for 10,000 Bitcoins, if he had held on to them, he would have north of 60 million dollars at current prices today, don’t be this guy.
The EOS blockchain is in the process of reinventing what blockchains can and will be in future, no other blockchain has this level of innovation happening within its ecosphere on a daily basis. One thing we all must understand, as EOS holders, is that the blockchain we see today is not its final form, and I don’t believe there truly is a final form for the EOS blockchain. Traditional naysayers have stated that cryptocurrency technologies will not succeed, because cryptocurrencies have no intrinsic value, and any top leader, such as Bitcoin will always be replaced by a newer better version, this has been one of the main accusations that traditional precious-metal goldbugs have used against the cryptocurrency industry, promoting these ideas as reasons not to invest in cryptocurrencies. And to a certain extent, these accusation do have some validity to them, especially when applied to 1st and 2nd generation cryptocurrencies. But fortunately, EOS holders have now entered a new age; a significant dichotomy shift has occurred with the introduction of the EOS blockchain.
The precious-metal naysayers will have real concerns in this new era of blockchain technology, the accusations that cryptocurrencies have no intrinsic value will soon be a thing of the past when factoring in the significant intrinsic utility value of blockchains like EOS. The EOS blockchain is an ever-evolving blockchain, and this is the powerful truth of the EOS blockchain. In itself, the EOS blockchain will be forever evolving to meet the changing needs, and demands of an extremely diverse and highly competitive blockchain industry.
Unlike other blockchains, the EOS blockchain is well equipped to handle any issue that occurs in the future. And because of its brilliant design, it will always be able to adjust, adapt, and integrate any new technologies in the future. No other blockchain operating at scale can make such a claim, no other blockchain operating at scale is as flexible, no other blockchain operating at scale is as adaptable, and no other blockchain operating at scale is as scalable, in a decentralized manner, as the EOS blockchain; this is not hype, it’s fact, and the EOS blockchain truly will change the world as we know it. EOS community, be resolute, you are winning.