What is EOS? In-Depth EOS Guide (2021)

Like other cryptocurrencies we’ve highlighted, EOS is an altcoin. Experts define altcoins as any cryptocurrency not named Bitcoin. While these virtual currencies aim to serve many different purposes, the crypto and many other competitors are attempts to build blockchains that are faster and cheaper than Bitcoin.

Even more than that, the broader goal of all blockchains in the space (Bitcoin’s included) is to allow cryptocurrencies to support payments at online merchants and trading at cryptocurrency exchanges. That presents a huge challenge to blockchain developers. Overthrowing centralized payment networks like Visa and MasterCard requires one to make decentralized technologies scalable.

EOS has a realistic shot at becoming the world leader in this department for several reasons. EOS tokens can also be used to make players crypto rich, which drives the popularity of  it. Unlike Litecoin, which simplifies bitcoin protocols, it builds from ERC-20 tokens, which are linked to the Ethereum network. This allows EOS to execute smart contracts.

Through the use of smart contracts, so the EOS platform provides cool ways players can win some that might overthrow traditional casinos and sportsbooks in the long run. It’s a visionary concept, so let us explain.

Launching The EOS Platform

The EOS initial coin offering ended in June of 2018 with the project officially launching on January 31, 2018. Block.one is the decentralized technology company behind it and its leaders: chief executive Brendan Blumer and chief technology officer Dan Larimer.

Larimer is a household name in the industry and a big reason investors funded the EOS project with $4 billion. The ICO set a new record for an initial coin offering at the time. Though the amount raised is astronomical, it made sense at the time — given the hoopla around cryptocurrency was at an all-time high. Of course, Larimer had two other successful altcoin projects on his resume: Bitshares, a decentralized trading crypto exchange, and STEEM, a crypto-based social media ecosystem.

The main driver of investment was the mission statement of the EOS platform. The crypto aims to offer a blockchain that handles 4,000 transactions per second and doesn’t charge anyone a transaction fee. Like Ethereum, it aims to do all of this while decentralizing computing power and giving developers systems for building applications.

If you want perspective on how ambitious that goal is, Bitcoin currently handles roughly 4.6 transactions per second. Ethereum, the second most valuable cryptocurrency in the world, handles up to 20 transactions per second. At the moment, the scalability of EOS blows the competition out of the water. It handles 3,000 transactions per second.

Why EOS isn’t moving ahead of predecessors

Despite that improvement, EOS is not exactly supplanting its predecessors in terms of market capitalization or popularity. There are several reasons for this:

• Controversy surrounding co-founder Brock Pierce, who put the project under a microscope on primetime television.
• Testing by third-parties reveal that the project functions more like a centralized cloud computing network than a decentralized blockchain. This scares off users.
• Transactions are “free”, but participants need to acquire computing power and RAM through a built-in EOS marketplace in order to earn tokens.
• The name just doesn’t carry the same weight from a branding perspective as Bitcoin or Ethereum.

Despite its drawbacks, EOS’ potential means it’s still among the top 10 most valuable digital currencies in the world. That’s a nod not only to the network’s scalability potential, but also to how it reaches consensus to confirm transactions. The system used is the ‘delegated proof of stake’ algorithm.

Proof of Work, Proof of Stake and Delegated Proof of Stake

Proof of Work, Proof of Stake, and Delegated Proof of Stake are the three most popular consensus algorithms in crypto blockchains. In order for cryptocurrency transactions to be valid, computers maintaining the network confirm the transactions by solving cryptographic puzzles.

In Bitcoin’s proof-of-work approach, validators are called miners. They require large amounts of computing power to solve increasingly complex puzzles and earn bitcoins as a reward. It gets harder to solve puzzles every year. That’s why Bitcoin’s network uses more electricity than some small countries.

Ethereum uses a proof-of-stake algorithm, where the gatekeepers are called validators, not miners. Validators must lend coins to the Ethereum network and be randomly selected to validate transactions. This means having a wealth of resources (coins) to stake rather computing power. The randomization of the process gives the little guys with fewer coins a puncher’s chance.

EOS uses a model called delegated proof of stake. It’s similar to Ethereum, except the validators choose delegates, which then validate transactions. The delegate approach makes it even harder to centralize authority over consensus, because there is an extra link in the chain of command. Just like validators, delegates are chosen randomly.

How to Gamble with EOS

Gambling is a quick way to earn some EOS tokens. Of course, betting is a quick way to lose tokens, depending on Lady Luck. Those looking for an easy way to lay down a few digital EOS chips on some sports bets or table games are out of luck as of 2019, but that might not always be the case. At the moment, Bodog or 5Dimes do not support payments through this crypto.

Those sites and their direct competitors take coins like Bitcoin, Bitcoin Cash, Dash, Ethereum, and Litecoin in many instances, but that’s usually where the digital buck stops. If you want a payment method most similar to EOS, choose Ethereum.

That means players looking to multiply their EOS supply need to use EOS-specific platforms. Below are a few of them with some brief descriptions. Note that many EOS gambling platforms require a browser add-on called Scatter in order to play. Click here to download Scatter.

EOS-friendly Gaming Sites

• BetDice: the largest EOS gaming platform available. Earn dividends for lending to the casino, place Dice, Baccarat, Lucky Draw, Sicbo and more.
• EOS Poker: play Dice, BlackJack, and all types of poker.
• EOS SportsBet: no table games here. Includes live betting and fantasy sports as of 2019. Wager against other individuals.
• EOS Bet Casino: again, all kinds of table games here. Earn dividends on casino profits by lending out tokens.
• EOSJacks: another popular table game site with a growing userbase.

Good luck trying to double up those EOS tokens. We’ll update when Bovada or 5Dimes begins accepting deposits. If you want to trade EOS tokens for Bitcoin, try bitcoin exchanges like CoinSwitch and HitBTC. That should get you started on your gaming adventure. Now that you know the options are aplenty, sign up and fund your account with an EOS deposit today.