EOS


sensu40 asked 5 months ago

I like to have a background of EOS, Is it a coin/token? If it is  a token how can we buy?
Do you think buying a few EOS is advantageous?
Thank you
Sunil

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1 Answers
Steven Hay answered 5 months ago

Hi Sunil,
 
EOS works much like Ethereum. It currently exists as an ICO token (ERC-20 standard) on the Ethereum blockchain. The ICO is set to conclude soon and nearly all the ICO tokens have been sold. However, today it transpired that a major security vulnerability was discovered in EOS smart contracts, so it may be that the launch date of the true EOS network is delayed until the bug is fixed.
 
You can buy the token from the EOS.io website. As for whether it’s advantageous to purchase it, the jury is still out. I am no expert on decentralized application platforms, as I do not own any Ethereum and have never been involved in ICOs or similar smart contract applications (outside of multisig contracts).
 
Personally, I steer clear of smart contract platforms as they present a far larger attack surface than cryptocurrencies such as Bitcoin which confine themselves to a monetary role. Being “Turing complete,” in other words offering full programmability, means that smart contracts have far more moving parts which inevitiably makes them much harder to secure against intentional malice or unexpected outcomes. I also believe that scaling is a major issue for such platforms, as their resource demands do not scale in a linear fashion as with Bitcoin but grow geometrically, meaning that at some future point they become too heavy to run for home users which results in centralization to data centres.
 
It’s possible that smart contract platforms will be perfected in future, but to my mind they are not yet quite ready for prime time due to the above-mentioned issues. One further problem which limits the usefulness of smart contracts is the so-called oracle problem. As sophisticated smart contracts depend on external data for conditional execution, the problem arises whereby one needs to establish trustworthy and unhackable inputs. In other words, if a smart contract awards money when a particular team wins a sports match, who can you trust to provide the score with absolute certainty?
 
Until these problems, I remain unconvinced regarding platforms like EOS. While promising, they are not yet entirely perfected. If you believe that the EOS team is capable of solving these hard problems, then by all means invest… but just be aware of the difficulty of the problems first.

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