What is EOS? Explanation of the EOS crypto

EOS is a blockchain platform designed to support scalable and fast applications (dApps).
The goal of EOS is to provide developers with an environment where they can build
decentralized applications without the limitations of older blockchains such as Ethereum.


While Ethereum is known for its innovative smart contracts, EOS aims to achieve similar
functionality but in a faster, cheaper, and more user-friendly way.


Although EOS (the EOS coin) is an interesting network within the world of layer-1
blockchains, it is currently not offered on Coinmerce. However, alternatives such as
Avalanche (AVAX), Polkadot (DOT), and Algorand (ALGO) are available and pursue similar goals.

What is EOS?

EOS is a layer-1 blockchain developed to process large volumes of transactions with minimal
costs. The network uses a consensus mechanism called Delegated Proof-of-Stake (DPoS), in
which users vote for so-called “block producers” who validate transactions.


This system enables fast transaction times and low costs, making EOS attractive for
applications with many users, such as gaming, DeFi (decentralized finance), and logistics.


EOS was launched in 2018 by Block.one, led by Brendan Blumer and Daniel Larimer (previously
involved in BitShares and Steem). At the time, the project raised a record amount through an
Initial Coin Offering (ICO): over 4 billion US dollars.

In summary

• Type of cryptocurrency: Layer-1 blockchain platform

• Purpose: Supporting scalable, fast dApps

• Consensus mechanism: Delegated Proof-of-Stake (DPoS)

• Key features: Smart contracts, low fees, scalability

• Issuer: Block.one (originally)

• Launch year: 2018

Price and history of EOS

EOS had a remarkable start in terms of price performance. In the first years after its
ICO, EOS ranked among the largest cryptocurrencies in the world. High expectations were
driven by the idea that EOS could become an “Ethereum killer,” with a strong focus on
scalability.


In the years that followed, the project faced challenges, including criticism regarding
the centralization of block producers and the role of Block.one. Despite this, EOS did not
lose all relevance: the community took over governance, and the EOS Network Foundation
(ENF) now leads the development of the ecosystem.


Today, EOS focuses on improved interoperability and new use cases for enterprise and
decentralized software.

What is EOS used for?

Apps and smart contracts

Like Ethereum, EOS uses smart contracts—automated programs that run on the blockchain.
Developers can build a wide range of applications, from DeFi platforms to games and social
networks.


A key difference compared to Ethereum is that EOS largely eliminates transaction fees.
Instead of paying per transaction, users stake a small amount of network resources (CPU,
RAM, and NET) to enable transactions.

Focus on scalability

EOS is built to handle thousands of transactions per second. Thanks to the DPoS consensus
mechanism, transactions can be validated quickly without compromising security.


This scalability makes EOS suitable for large-scale applications such as blockchain
gaming, social platforms, and enterprise solutions where speed is essential.

How does EOS work at a high level?

Network structure and transactions

The EOS network uses 21 active block producers responsible for validating transactions and
creating new blocks. Users holding EOS tokens can vote for these block producers.


Transactions on EOS are typically confirmed within one second. Instead of gas fees (as
used on Ethereum), EOS relies on resource staking, where users temporarily reserve network
capacity.

Ecosystem and usage

The EOS ecosystem consists of hundreds of dApps and development tools. In its early days,
the focus was mainly on games, decentralized exchanges, and social media platforms.


Today, the EOS Network Foundation supports new projects focused on Web3, digital identity,
and interoperability with other blockchains.

Alternatives to EOS on Coinmerce

Avalanche (AVAX)

Avalanche is a fast-growing blockchain platform using a unique consensus mechanism. It can
process thousands of transactions per second and supports smart contracts for DeFi and
enterprise use cases.

Polkadot (DOT)

Polkadot is designed to connect multiple blockchains through an ecosystem of parachains,
enabling secure data and token exchange between different networks.

Algorand (ALGO)

Algorand focuses on speed, security, and sustainability. Its Pure Proof-of-Stake consensus
mechanism enables efficient validation with low energy consumption, making it suitable
for scalable dApps.

Frequently asked questions

What is EOS crypto?

EOS is a layer-1 blockchain platform designed to enable fast, scalable, and low-cost
transactions for decentralized applications (dApps).

What is EOS used for?

EOS is used to build dApps, smart contracts, and Web3 applications, with a strong focus on
scalability and minimal transaction costs.

Is EOS a layer-1 blockchain?

Yes, EOS is a layer-1 blockchain, meaning it has its own infrastructure and consensus
mechanism, similar to networks like Avalanche and Polkadot.

What are alternatives to EOS?

Alternatives include Avalanche (AVAX), Polkadot (DOT), and Algorand (ALGO). These networks
offer similar functionality for dApps and smart contracts and are available on Coinmerce.

What is the difference between EOS and Ethereum?

Ethereum pioneered smart contracts but suffers from higher fees and slower transactions.
EOS uses Delegated Proof-of-Stake (DPoS) to achieve faster and cheaper transactions.

Please be aware Yield Services are currently not covered by the Markets in Crypto-Assets Regulation (MiCAR) or any other sectoral EU legislation. This means the service does not offer the same safeguards as MiCAR-regulated services that Coinmerce offers.