EOS to empower the Blockchain Renaissance

EOS is a decentralized blockchain operating system that was designed to support industrial scale decentralized applications (dApps).

While there are many dApp platforms competing for their share of the market, EOS stands out as the technology that will likely play the biggest role in supporting the coming blockchain renaissance.

Why EOS and not Ethereum?

EOS has two key points of differentiation from other blockchain platforms that have brought the project a lot of attention:

  1. They plan to completely remove transaction fees.
  2. They claim to have the ability to conduct millions of transactions per second.

Ethereum has been by far one of the biggest breakthroughs in blockchain technology, kicking off a massive wave of innovation and new decentralized applications with the ERC-20 standard utility token protocol.

However, Ethereum is far from ready to scale to meet the needs to mass adoption and mainstream applications with many users. Two key reasons for this are the transaction fees on the Ethereum network (gas) and the low number of transactions per second.

EOS is better for developers

The main difference between how Ethereum and EOS operate is that while Ethereum rents out their computational power to the developers, EOS gives ownership of their resources.

So for example, if you own a 1% stake in EOS then you will have ownership of 1% of the total computational power and resources in EOS.

“EOS’s ownership model provides DAPP developers with predictable hosting costs, requiring them only to maintain a certain percentage or level of stake, and makes it possible to create freemium applications. Furthermore, since EOS token holders will be able to rent / delegate their their share of resources to other developers, the ownership model ties the value of EOS tokens to the supply and demand of bandwidth and storage.” -icoreviews

These fundamental differences between EOS and Ethereum that make EOS more well-suited for supporting the next wave of blockchain innovation and decentralized application, a.k.a. the blockchain renaissance.

Dan Larimer, “The Architect”

Dan Larimer is the CTO and creator of EOS. He is renowned for being one of the, if not, “the” top blockchain developer in the space.

Dan is a true pioneer as demonstrated by his creation of the delegated proof-of-stake (DPOS) algorithm and decentralized autonomous organizations (DAOs). He is the also the man behind BitShares and Steem, two of the most high-performing blockchains in the space.

One of the key reasons people have so much confidence in the EOS project is because of Dan’s solid track record and brilliance in architecting elaborate systems that work flawlessly.

Dan has walked away from two of the most successful blockchain projects in the world, created himself, to work on EOS which promises to be his masterpiece.

What does EOS bring to the table?

#1 Scalability

The biggest problem the blockchain space is facing is scalability.

Because EOS uses DPOS aka the distributed proof-of-stake consensus mechanism, they can easily compute millions of transactions per second. We will explore DPOS in a bit.

#2 Flexibility

Ethereum’s blockchain came to a halt because of the DAO attack. Everything stopped and the community split with a hardfork.

Because EOS uses DPOS this sort of thing won’t happen. If a dApp runs into these sorts of problems, the block producers can freeze it until it’s resolved. This would be an extension of the DPOS system where not every node has to take care of chain maintenance.

#3 Usability

EOS has great usability features for developers. It allows well-defined levels of permission with features like a web toolkit for interface development, self-describing interfaces, self-describing database schemas, and a declarative permission scheme.

#4 Governance

In EOS, governance is maintained by establishing jurisdiction and choice of law along with other mutually accepted rules in a legally binding constitution.

Every EOS transaction includes the hash of the constitution in its signature. This binds the users to the constitution.

The constitution can be amended following a thorough process:

  • The change is proposed by the block producer who obtains a 17/21 approval rate
  • The 17/21 approval must be maintained for 30 straight days.
  • All users are required to sign off their transaction using the hash of the new constitution.
  • Block producers adopt changes to the source code to reflect the change in the constitution and propose it to the blockchain using the hash of a git commit.
  • Block producers again need to maintain 17/21 approval for 30 consecutive days.
  • After that, full nodes are given one whole week to adapt to the new changes.
  • Any node that doesn’t follow the new protocol is automatically shut down.

 

The ability to make changes to the constitution is important because if something like the DAO attack happens and EOS needs a quick solution, the block producers have the power to speed up the amending process.

#5 Parallel Processing

Program instructions are divided among multiple processors. EOS provides parallel processing of smart contracts through horizontal scalability (adding more computers), asynchronous communication (all parties involved don’t need to be present to communicate), and interoperability (exchange and use information with other systems). This speeds things up substantially.

Self-Sufficiency

All blockchains built on EOS will generate a 5% natural inflation per year. This will be distributed to the platform’s block producers for confirming transactions on the platform.

This ensures that blockchains won’t rely on only one foundation, organization, or individual for its growth, development or maintenance.

A Decentralized Operating System using DPOS

This is the most important feature to understand what EOS is all about and what really sets it apart.

While Ethereum is a decentralized supercomputer, EOS positions itself as an operating system. This makes EOS a more focused product.

Delegated Proof Of Stake (DPOS)

EOS uses Delegated Proof of Stake (DPOS) for their consensus.

What is proof of stake?

Proof of stake makes the mining process virtual and replace miners with validators.

This is how the process works:

  • The validators will have to lock up some of their coins as stake.
  • They start validating the blocks. Meaning, when they discover a block which they think can be added to the chain, they will validate it.
  • If the block gets appended, then the validators will get a reward.

What is EOS Blockchain: Beginners Guide

What makes DPOS different from traditional POS?

Anyone who holds tokens on a blockchain integrated with EOS software can select block producers through a continuous approval voting system.

Anyone can participate in the election of block producers and they will be given an opportunity to produce blocks proportional to the total votes they receive relative to all other producers.

How it works:

  • Blocks are produced in rounds of 21.
  • At the start of every round 21 block producers are chosen. Top 20 are automatically chosen while the 21st one is chosen proportional to the number of their votes relative to the other producers.
  • The producers are shuffled around using a random number derived from the block time. This ensures that a balanced connection to other producers is maintained.
  • To ensure that regular block production is maintained and that block time is kept to 3 seconds, producers are punished for not participating by being removed from consideration.
  • Producers need to produce at least one block every 24 hours to be in consideration.

The DPOS system doesn’t have forks because instead of competing to find blocks, the producers co-operate.

In the event of a fork, the consensus switches automatically to the longest chain.

Confirming Transactions in DPOS

A DPOS blockchain has 100% block producer participation. A transaction is usually confirmed within 1.5 seconds with 99.9% certainty.

In order to have absolute certainty over the validity of a transaction, a node needs to wait for a 2/3 majority (15/21) of producers to achieve consensus.

TAPOS

Transaction As Proof Of Stake or TAPOS is another feature of EOS. Every transaction in the system is required to have the hash of the recent block header.

This is important because it:

  • Prevents transaction replay on different chains (i.e. replay protection)
  • Signals the network that users and their stakes are on a particular fork.

This prevents malicious behavior on other chains.

Eliminating Transaction Fees

EOS works on an ownership model whereby users own and are entitled to use resources proportional to their stake, rather than having to pay for every transaction.

If you hold 1% of tokens of EOS then you are entitled to 1% of transactions. Holding tokens represents ownership over bandwidth and in essence, eliminates transaction fees.

The blockchain renaissance of the future

The adoption of blockchain technology is set to hit a tipping point of mass adoption within the next couple of years that will require massive scale.

The increased adoption will bring a lot more developers and projects and EOS is well-crafted to meet developer needs, provide proper incentives, and the performance needed to manage the scale.

It has been said that EOS is capable of running the entire ETH blockchain inside a single contract. This being said, EOS is far more likely to succeed on a massively bigger scale through such a partnership and integration with Ethereum.

The integration of Ethereum and EOS would provide a win-win for both projects in terms of network effects, scale and performance, costs, and interoperability for end-users.

Only time will tell how things pan out for the two projects and into the future of the blockchain renaissance. However, one thing is for sure. EOS is going to be big.

Always DYour Own Research.

Hold on for dear life.

Mining Proof of Stake coins puts the power of Central Banks in your Laptop

As part of my quest to build out my crypto battle chest with well-diversified crypto investments, I began to do more heavy research mining Poof of Stake (PoS) coins and the options on the market.

Proof of Work (PoW) mining vs. Proof of Stake (PoS) mining

PoW vs. PoS

The difference in how you’re paid mining rewards

With PoW mining, you run computer hardware to confirm transactions and secure the network to earn mining rewards.

With PoS mining, to earn mining rewards you simply hold (a.k.a.) stake your coins in a wallet and stay connected to the network to earn mining rewards.

Staking Wallets for Profits

PoS mining coins bring profits in the form of more coins at rates ranging in general, anywhere from 5% Annually to hundreds of percentages, for example 200% or 808%. That’s right, 3x or 9x the original amount of coins you invested in.

Staking Wallets for Profits

Some of the most widely adopted PoS coins earn approximately 5% rewards, including NEO, PIVX, Reddcoin, and Stratis.

Now 5% per year may not sound like much if you think about the price volatility of cryptocurrency, but it’s important to note that a 5% increase in coins is very different, and arguably better than a 5% short-term increase in price.

Mining reduces your price risk in the long run

Once you have traded your fiat currency to cryptocurrency, you expose yourself to the price risk of the cryptocurrency market with your set amount of coins, and your options to generate profit involve either sitting and waiting for price appreciation or trading.

Price Risk Management

When you mine, you generate more coins at all price levels, and over the long term you have more holdings regardless of the price of the coin.

Staking wallets pay you in more crypto!

Earning more cryptocurrency is a different form of profit than price appreciation. When you are increasing your coin balances with PoS mining and the price of your coins also increases, you are making gains on both ends: more coins and price gains.

If it hasn’t dawned on you yet exactly what this means, here is some visual aid.

Money PrinterCryptocurrency mining is like having your own money printing machine

This is exactly why mining Bitcoin and Alt-coins is in such high demand. Everyone is trying to get a piece of the action, and the truth is that there are high startup costs and technical difficulties to get a Proof of Work mining operation up and running.

 

With this overview in mind, we see that this is a great way to grow your wealth in cryptocurrency and diversifies your strategy to be less reliant on the price appreciation of your crypto holdings.

Buyer Beware: Higher Reward = Higher Risk

On my quest to learn more about PoS mining, I stumbled upon some higher yielding small cap coins with mining rewards of easily over 100% per year which are very small in market capitalization.

Small cap cryptocurrencies under the $300 Million market cap level are generally considered very risky, and tend to have a lot more volatility and pump and dumpers using them.

Considering the high level of risk, now we have an expert in this space who put out a book on the subject: Junsun Chan.

How to Mine Bigly for 200-808% Annual Returns on just a Laptop

Mine Bigly by Junsun Chan
Mine Bigly by Junsun Chan

In his book (available on Amazon) Junsun outlines a system for mining high-yield PoS coins for profit with just a laptop and a little bit of electricity.

The book quickly drives into the concept of mining as printing money out of thin air.

When you hold Proof of Stake coins that generate more coins of themselves, and you take a portion of those coins to an open exchange like Binance or Kucoin to trade them for Bitcoin, you are essentially printing money, like central banks do with fait. The coins you mine can be exchanged directly for fiat currency like US dollars on Coinbase.

What do you need to get started?

Very little is required. All you need to get started are things you probably already have!

1. A computer or laptop with operating systems Mac OS, Windows 7, Windows 8+ vista (recommended), or Windows 10 (PRIMARY recommendation)
2. Internet connection
3. Seed money of about $50 or less to buy bitcoin and start mining. You can use less cash but bear in mind results will take longer to be realized.

Three High-Yield PoS coins that will put power of the Central Bank in your computer

1) 808Coin pays an 808% annual staking reward
808 Coin Proof of Stake
2)  Sprouts pays a 200% annual staking reward

Sprouts Coin Proof of Stake

3) Condensate (RAIN) pays a high but randomized staking reward
  • My RAIN generated +7% rain in just 12 days, which is around 200% annualized

Condensate Rain Proof of Stake

The first two coins, 808 and Sprouts are Junsun Chan’s top 2 recommendations. Junsun goes deep into explaining how these coins work in his book you can buy here.

The third coin on the list, Condensate (RAIN) is another one I came across, and seems to have more going for it in terms of a long-term purpose other than making people money.

The aim of Rain is to create a secure and robust network that is supported by its users in a meaningful way. To make it figuratively and literally rain on the community, and to utilize this network to partner with climate researchers and scientists to help better understand the world that we all live in.

Breaking down the benefits to using this PoS mining strategy

1. Never have to talk or interact with anyone. This is all automatic with a one time setup on your computer to start mining. No sales work! Hooray!
2. No need to invest in any hyip scam of any kind or 3rd party “cloud mining solution” that turns out to be another scam.
3. You control 100% fully all the money and coins in your wallet.
4. You gain the power of central banking and literally print money out of thin air. This is the miracle of bitcoin altcoin mining and I TEACH YOU its SECRETS.
5. EARN UNHEARD OF 200%-808% annual returns! This is NOT a typo! And the insane part is you can do this for less than $5 a month in electricity costs; I live in New York City and its expensive but power costs to mine costs this little to me.
6. The 6 compound/withdraw strategies that you can use to grow your bitcoin mining operation while withdrawing profits reasonably. Breaking even has never been easier for you!
7. Written primarily for poor people in mind, I am an unemployed actor and had to scrounge for money. This will be a god send for anyone needing a long term money making solution that they can start using TODAY to plug their financial woes.
8. Gain the knowledge of traditional central banking so you can understand that what you’re mining bitcoin-altcoins for is just the foundation of something much greater and freer.
9. Persuasion “hacks” that were learned and mastered from psychology masters such as Mike Cernovich (Gorilla Mindset) and Scott Adams of Dilbert fame. Emotional control over yourself will help you and all crypto currency adopters for the coming fight ahead to ban and restrict bitcoin.

Once you’re set up, you won’t have to invest any more money (if you don’t want to) or effort after the initial set up. You can start as low as $50 (my minimum recommended). In fact, I encourage to start off slow and small so you can learn how crypto currencies work and when the bitcoin is flowing into your wallets, then you can “ramp up” if you choose for MORE profits!

If you choose to invest and mine any of these PoS cryptocurrencies, remember to DYOR (Do Your Own Research) and that this is not financial advice. Hold on for dear life.

Proof of stake (POS) cryptocurrencies

HODL your Proof-of-Stake (PoS) coins to validate, and earn crypto by PoS coins.The PoS concept is straightforward and easy for anyone with a laptop to do as opposed to buying the mining hardware you can find in your typical bitcoin mining farm.

PoS coins are also interesting because there is a growing trend in cryptocurrency market towards PoS coins. Even Bitcoin’s impending Lightning Network upgrade seems to forebode a PoS-like system, even though the main Bitcoin chain will continue to rely on PoW.

Proof-of-Stake is a much newer proposed methodology for achieving distributed consensus. The viability of network’s relying on PoS are not achieved by mining but rather by staking. Staking, simply put, is just when users hold their PoS-compatibile cryptocurrencies in a specialized staking wallet.

Staking achieves the same effect of mining (distributed consensus) without the need for expending exorbitant amounts of computing power and energy.

And if you “stake” your coins, you’ll be rewarded with crypto payouts on a rolling basis just as if you were a mining “winning” a block.

 

I was introduced to this concept by staking NEO (The Chosen One).

NEO

NEO is interersting because it uses something called a delegated Byzantine Fault Tolerance (dBFT). Disregard how confusing that might sound at first glance, and just think of dBFT as kind of like an optimized Proof-of-Stake system.

 

Lisk

Like NEO, Lisk uses a different kind of PoS. Lisk’s distributed consensus methodology is called delegated Proof-of-Stake, or DPoS for short.

This means that while staking is possible with Lisk, it’s only possible for the top 101 “delegates,” with these delegates being voted on and agreed to on a rolling basis by the community.

So, not everyone can stake with Lisk. You’ll need to crack the top 101 delegates for that. But the project still uses an incredibly interesting PoS model.

And with Lisk being akin to Ethereum but built atop the programming language JavaScript instead of Solidity, its potential impending mainstream use could have its dPoS system getting increasingly popular in the years ahead.

Stratis

Stratis is a C#-based crypto project that mined its first PoS block earlier this year in May.

As the Stratis team declared triumphantly at the time:

“This is the first documented and tested instance of a Proof-of-Stake blockchain block mined in C#. Now the developers will combine the full node with the wallet layer developed for Breeze, our full node with PoS will then be ready for a test release in approximately a week from now.”

PIVX

PIVX is a project that forked off of the DASH blockchain last year and has, unlike DASH, fully transition to the PoS distributed consensus system.

PIVX holders have the perk of not having any minimum or maximum cap for staking, too, so you can stake any amount of coins you would like to. To this end, they take the opposite approach to Lisk: anyone and everyone can stake.

Stakers get an annual return of around ~4.8 percent with PIVX.

OKCash

OKCash is an older cryptocurrency project, having been started back in 2014. They’re one of the “OGs” of PoS, as it were, and the project is orientated toward being a micro-transactions throughway.

They’ve got a pretty impressive annual staking return of around ~10 percent. That’s among the best annual returns you’ll find among any PoS coin right now.

All you’d need to do is move your requisite OKCash into a specialized staking wallet.

Many projects are already moving toward PoS, even though it’s a distributed consensus methodology that still hasn’t been widely tested at present.

ETHEREUM

If Ethereum’s shift to Proof-of-Stake goes off without a hitch and proves successful, the dynamic of PoS coins having a small overall sliver of the top 100 cryptocurrencies by market cap in contrast to PoW coins should forever change, to the extent that that “sliver” should become something larger.

ETH’s so-called “Casper” update is what will initiate the crypto’s evolution to PoS. Once this is completed, ETH holders will be able to stake their funds for recurring “dividends” of ether.

Right now, it’s definitely not set in stone how many ether will be required to stake. Indeed, there has been several numbers casually thrown around the community in recent weeks, but to be clear: nothing’s official yet.

Some of these numbers have been as high as needing 1,000 ETH to stake. Some projections are as low as 10 ETH. Another number you hear a lot is 32.

But don’t worry if you’re not an ether whale. Eventually you should be able to pitch in even small amounts of ether into staking pools to partake in the new model.

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