After a messy weeks-long process, CoinDesk broke the news yesterday that the EOS blockchain is officially live.
To some, it’s already an event for the cryptocurrency history books.
Still, if you haven’t been following the event closely, it might beg the question, ‘What is EOS anyway?’
When we talk about EOS, think about a cloud computing service like Amazon Web Service. It’s a platform for the storing or hosting of data, except rather than using a centralized server, EOS is attempting to distribute the data in a distributed system using blockchain technology.
It was created by blockchain startup, Block.one, and was able to gather over $4 billion to develop its open-source software over a year-long initial coin offering (ICO).
Last week, however, Block.one turned its code over to the world, or more specifically, to developers willing to work on the software as well as 21 block producers who will approve its transactions. The idea is that, in order to be more efficient than your average blockchain, EOS reduces the number of individuals or companies that can validate transactions.
Rather than competing in a global open market like bitcoin’s, users who own tokens are constantly voting for block producers.
Sounds pretty ideal right? Well, the trick is getting a global network no one is supposed to control off the ground.
Some questioned the set-up, as it ensured the voting process went on for some time while all the distributed users of the network struggled to coordinate. In this way, the more damaging criticisms might come from those who were eager to point out this has been done before (with varying results).
Overall, it’s safe to say this voting process looked a bit confusing from the outside, and other market observers were perhaps a bit too quick to cast judgement.
Some even went so far as to blame the plan of action for the token’s poor market performance over the last few weeks.
Education to come
These comments point to a central issue – EOS operates differently than other blockchains.
This means it’s still taking the industry a while to see what EOS is trying to create and that this vision actually adds value to the users it wants to reach.
As long-time industry observers point out, it’s still not really clear who would want a blockchain that’s not that decentralized. After all, blockchain believers cite decentralization as a key advantage of blockchains over the existing financial system.
As these tweets show, some already have their minds made up about how EOS will work.
Some even go so far as to argue past investments are influencing current opinions on the project.
But with EOS is ranked as the number five cryptocurrency on CoinMarketCap, there are those who remain eager to defend its vision.
As the tweet below shows, crypto Twitter might be divided on this view for some time to come.
EOS money image via Shutterstock
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