Why Investors Renewed Interest in EOS
The price of the EOS token has been steadily rising in the last few months despite the fact that gains have actually be hard to come by in this time. This is caused renewed interest by investors in this cryptocurrency. Especially since Multicoin Capital, a crypto fund, announced that EOS is the next gen platform for smart contracts.
What Makes EOS So Special?
EOS has taken a different road right from its inception. Its ICO was issued differently from any other token in the market so far. Instead of launching one round of funding right at the beginning, EOS launched a year-long fund raising ICO, starting in the summer of 2017 and ending on June 1 this year.
At this end of this ICO, the developers of EOS, Block.one, will launch the cryptocurrency’s own blockchain, which will challenge the Ethereum network. Its developers claim that this new network is going to be a faster and cheaper way to carry out smart contracts than both Ethereum as well as NEO.
EOS also promises user experience upgrades on its new platform, such as account recovery mechanisms as well as human-readable addresses. Why this is also special is because the developers are promising that these attributes will be present at the protocol level, rather than on the surface or top layers of the network.
Despite being less than a year old, this project has already raised $2 billion in ethers through its ICO and already has a market value of more than $14 billion (at the time of writing).
Scepticism of EOS’ Ability to Succeed
EOS has been in the news since its inception, but most of the time for wrong reasons. Many experts in the market feel that this cryptocurrency and platform is doomed to failure. One of the reasons for such strong skepticism is that this platform hasn’t even been launched yet; there are numerous teething issues that haven’t even been addressed, which makes many feel that this is an overvalued crypto.
According to Multicoin, the fact that EOS is so unorthodox is what will make it succeed. Platforms such as Ethereum and Bitcoin have large numbers of developers to ensure their networks remain decentralized and censorship resistant. However, EOS has consciously kept only 21 developers to manage their platform. There are backup validators ready to take the place of any one of the 21 in case of misbehavior or fallouts, but the main set are just 21. This ensure faster throughput and better scalability.