Unlike BItcoin, EOS does not rely on mining to get new coins. Here, block producers generate more blocks and are rewarded with EOS tokens in exchange. In fact, block producers can publish the desired amount for payment.
To prevent misuse of the feature, the mechanism has a limit towards producer award tokens such that the annual hike in token supply cannot exceed 5%. So, token holders who vote on the matter, hold the authority to stop block producers who demand more.
EOS tokens can be kept in multiple wallets and can be traded on a number of cryptocurrency exchanges. However, their block-producing mechanism is centralized, which does seem contradictory to the general idea of decentralization around blockchain. As a result of which, they have attracted a lot of criticism.
What Is the Purpose of EOS?
The EOS platform was made to support dApps (decentralised applications that work on blockchain technology) on a commercial scale. EOS provides the needed functionality for businesses to create blockchain applications in an easier and more accessible way.
Case Study: OmniOne
OmniOne built a decentralized identity solution that uses EOSIO to associate multiple public keys with a single account and a Proof of Authority model, to increase confidence in authentication.
Solutions Overview:
1. Portable Verification
Issuers serving as certification authorities can be requested for verification that help prove identity.
2. Designed for Adoption
Built for adoption by financial organisations, medical facilities, government entities, or educational institutions.
3. Privacy
Users have control over when and where their credentials can be used, and who can access them.
4. Reduced Risk
Blockchain reduces the risk of doing business for service providers.
Key success factors for a dApp platform
The following list comprises the key success factors for any dApp:
1. Support for Large User Base
The dApp platform must be scalable for seamless commercial use
2. Free Usage
The dApp must cost nothing for end users, any transaction fee would discourage the market.
3. Low Latency
The dApp should run with the lowest possible latency to provide a good user experience.
4. Parallel and Sequential Performance
A dApp should offer parallel processing to distribute the workload and save time. To prevent errors like double-spending, the dApp should also allow for multiple sequential executions.
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