Connect with us

Analysis

ICO Analysis: EOS

Published

on

EOS.IO software by block.one wants to “Decentralize Everything”. Mr. Larimer has already put two notable blockchain systems live: BitShares and Steem. Both of these systems remain online and recently benefited from increased interest in the crypto-asset space in general. To this date, EOS has raised $200 million in revenue from token sales.

Brock Pierce, co-founder of block.one, told Reuters that EOS is designed to be a foundation for blockchain business applications. Attendees heard a lot about EOS at last month’s Consensus conference put on by Coin Desk. Block.one claims its platform has eliminated transaction fees and can process millions of transactions per second.

The startup, which recently started selling the EOS token to create a decentralized distribution of tokens to be used with the EOS.IO software has introduced the concept of automating business processes, monitoring assets, and creating multiple applications based on prior technology introduced by Mr. Larimer, who is the inventor of the “Proof of Stake” and the “Decentralized Autonomous Corporations” concepts.

According to its website,

(…) block.one provides end-to-end solutions to bring businesses onto the blockchain from strategic planning to product deployment.

The Team

Block.one CEO, Brendan Blumer, has been involved in the blockchain industry since 2014. Mr. Blumer’s businesses include virtual currency trading in MMORPGs in the US, okay.com in Hong Kong and 1Group in India.

Partner Brock Pierce has raised $200 million for companies he founded, according to his biography. A former child actor, the well-connected Pierce founded Internet Gaming Entertainment in 2001 and ZAM two years later.

Many of Pierce’s companies operate in the virtual currency space. Active in the Bitcoin blockchain ecosystem for nearly a decade already, and a former Director of the Bitcoin Foundation and founder and managing partner of fintech focused venture capital firm Blockchain Capital, Mr. Pierce mentors startup accelerators.

Pierce serves as a founder, board member or advisor at several bitcoin companies: GoCoin, Tether, ZenBox, Blade Financial, Expresscoin, Noble Markets, BitGo and ChangeTip.

Partner Ian Grigg is a financial cryptographer working on cryptographic ledger platforms for over 20 years. He is known for naming the Ricardian Contract, “a method to identify and describe issues of financial instruments as contracts”.

Mr. Grigg’s focuses have revolved around digital contracting. Ricardian Contracts “express all the salient details of an issuance as an unforgeable contract, unforgeably linked into every action within a payment system.”

The Ricardian white paper contract goes on: “By translating the institution of the contract into the digital domain, we build upon centuries’ and even millennia’s worth of experience in documenting, sharing and disputing the meaning of agreements between parties.”

The Ricardian Contract allows clarity in legal and customer support questions. “The user benefits from lower overall costs, and better presentation of information, within a more consistent framework.” Mr. Grigg’s work on triple-entry accounting incorporates Signed Receipt and standard, double entry bookkeeping.

Mr. Larimer is known for his work with BitShares and Steemit. He is credited with inventing delegated proof-of-stake and the concept of decentralized autonomous organizations. (modified by Ethereum)

BitShares’ market-pegged asset platform was described as a hedge against cryptocurrencies by placing fungible fiat derivatives backed by cryptocurrency on a blockchain. Larimer left the project due to lack of funding. In 2016 he joined Steemit, where he created a social content platform based on blockchain.

Larimer says BitShares’ innovation lays in its vertical scalability, which allows transactions to be processed up to as many as 100,000 per second. Mr. Blumer cites horizontal scalability, parallel execution of smart contracts and the simultaneous processing of transactions as EOS strengths. Block.one likely represents the most professional outfit with which Larimer has worked.

The Platform

The software is called ‘EOS.IO’. There is then the ‘EOS Token’ and the ‘EOS Platform’. EOS’ “asynchronous proof-of-stake blockchain” platform is designed to enable applications as user-friendly as centralized alternatives. Making use of delegated proof-of-stake (DPoS) consensus protocol, EOS describes its project as a republic wherein community members of the community delegate verifying transactions to elected block producers.”

Transaction as Proof of Stake (TaPoS) will be implemented on EOS.io software to require that each transaction includes the hash of a recent block header. This hash serves two purposes:

  1. prevents a replay of a transaction on forks that do not include the referenced block; and
  2. signals the network that a particular user and their stake are on a specific fork.

According to the EOS white paper: “Over time all users end up directly confirming the blockchain which makes it difficult to forge counterfeit chains as the counterfeit would not be able to migrate transactions from the legitimate chain.”

The EOS.io software ensures there are no gaps in its transaction history by assigning a sequence number to every message delivered to every account via “proof of completeness.”

The project’s white paper, available on GitHub, notes: “A user can use these sequence numbers to prove that all messages intended for a particular account have been processed and that they were processed in order.”

Integration

EOS, like many proposed distributed ledger platforms, intends to integrate various blockchain platforms. The startup intends on doing this by ensuring clients that they do not need to process all transactions.

After all, an exchange only cares about transfers in and out of the exchange and nothing more,” reads the white paper. “It would also be ideal if the exchange chain could utilize lightweight merkle proofs of deposit rather than having to trust its own block producers entirely. At the very least a chain’s block producers would like to maintain the smallest possible overhead when synchronizing with another blockchain.

In implementing Merkle Proofs for Light Client Validation (LCV), EOS hopes to enable “the generation of relatively light-weight proof of existence that can be validated by anyone tracking a relatively light-weight data set.”

The EOS white paper describes solving latency problems by breaking blocks into “cycles” divided into different threads and transactions containing messages for delivery. “This structure can be visualized as a tree where alternating layers are processed sequentially and in parallel,” according to the white paper.

It concludes:

The EOS.IO software is designed from experience with proven concepts and best practices, and represents fundamental advancements in blockchain technology. The software is part of a holistic blueprint for a globally scalable blockchain society in which decentralised applications can be easily deployed and governed.

“Every single account operates like its own chain, and supports interoperation between all other accounts without locking, so determinism is preserved,” according to Mr. Larimer.

Mr. Larimer calls EOS an “incremental improvement” over his previous projects, describing it as a “general case” of BitShares and Steemit. EOS could support applications like Bitshares and Steem, but it’d be up to those teams.

Our Rating

Now, whether or not EOS will offer infinite scalability and free transactions has yet to be seen – after all, there isn’t much code to go on. As for the latter claim, a basic foundation of pop-economics is that there is no free lunch. The question for EOS, then, and any blockchain project, is whether or not what it offers outflanks its predecessors and contemporaries.

Thanks to its experienced team, and its track record of success, as well as in-production use cases for the technology itself, we give EOS a 6.75 out of 10.

Investment Details

EOS digital token distribution opened up Monday, June 26. EOS’ token distribution follows a participation model that will transpire over the course of one year, “creating the fairest token distribution project on Ethereum to date,” according to the company. Pierce told Reuters that

The goal of the EOS token sale is to make it truly democratize and provide equal access to everyone (…)

Mr. Blumer said: “To ensure inclusivity, EOS

To ensure inclusivity, EOS are not sold for a fixed price, but sold at a price determined by market demand; this mimics mining, but does not offer unfair advantages to large purchasers.

The EOS token sale, which is set to take place over the span of nearly one-year on the Ethereum blockchain, will see 1 billion tokens allocated. 20 percent of the EOS tokens will be sold during the first days, with 70 percent split evenly into 350 consecutive 23-hour periods of 2 million EOS tokens per, beginning July 1. The 10 percent leftover, reserved for block.one, cannot be traded or transferred on the Ethereum network. According to Blumer, EOS will be priced on market demand.

The crowdsale has appeared in New York Times, Reuters and VICE and other noteworthy outlets, as well as hosted info sessions, sponsored events, given out free merch, and advertised on Time Squares jumbotron. Like so many blockchain-based token sales, EOS today is little more than a concept, a white paper, and new code.

Critics levy criticism at Larimer for having left his prior projects, but the developer was free to leave the projects on his whim. He has said publicly that building up the platforms to be self-sustaining was his goal on both platforms before handing over responsibilities. Faces of developers, even on the bitcoin blockchain, often change.

Criticism of DPoS paints it as a winner-take-all arrangement which results in ‘whales’ who can control the system. Some compare it to proof-of-work in bitcoin, where holders of more currency may act as an ‘elite’ in the system.

Bitcoin and Ethereum can be thought of as Delegated Proof of Work where miners elect mining pools, Mr. Larimer told Hacked.com. Less than a dozen mining pools control the vast majority of block production, but Delegated Proof of Stake ensures there are over 20 producers “mining pools” elected by the stake (“hash power”). Like proof-of-work anyone can produce blocks occasionally by voting for themselves. Steem has over 50 unique individuals who produce blocks every single day, more than Bitcoin or Ethereum.

Featured image from Shutterstock

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

5 stars on average, based on 1 rated postsJustin O'Connell is the founder of financial technology focused CryptographicAsset.com. Justin organized the launch of the largest Bitcoin ATM hardware and software provider in the world at the historical Hotel del Coronado in southern California. His works appear in the U.S.'s third largest weekly, the San Diego Reader, VICE and elsewhere.




Feedback or Requests?

6 Comments

6 Comments

  1. godtrader

    July 5, 2017 at 5:48 pm

    Thanks, that was an interesting read. I managed to make some profit selling my first windows ICO tokens at $4.29. Its interesting where the price of EOS token will go in next days/weeks. Looks like its just speculative demand.

    • Justin OConnell

      July 7, 2017 at 5:26 pm

      Speculative demand will fuel many ICOs. There seems to be a misconception that tokens should have an inherent value. In my opinion, public blockchains themselves are where inherent value and utility can be found. Token sales are often a vote of confidence in the wherewithal of a specific project. In the case of EOS, it evokes confidence thanks to Mr. Larimer’s experience and the capital behind the project.

  2. choikech

    July 6, 2017 at 1:29 am

    EOS anaylsis published too late. The heat is already gone.

    • Justin OConnell

      July 7, 2017 at 5:27 pm

      It is likely that, at least, a finished platform will come of this considering Mr. Larimer’s coding experience. I would be surprised, in this case, if nothing came of this.

  3. AsTi

    July 6, 2017 at 8:17 am

    EOS ICO SCAM and you know it. 170 million to build the Bitshares fork? Really? Where this invested money? Definitely on the exchanges.

    BTW, almost every second post is ‘to late’ or has info like this.

    • Justin OConnell

      July 7, 2017 at 5:28 pm

      It’s likely, due to Mr. Larimer’s experience, a project will come of this. Further, the company’s partners are well-connected.

You must be logged in to post a comment Login

Leave a Reply

Analysis

Crypto Update: Bitcoin Plunges Below $6500 as Heavy Selling Resumes

Published

on

The cryptocurrency segment is having another very negative day after a calmer period, as selling pressure intensified yet again. All of the major coins turned sharply lower, with the laggards of the recent period, Litecoin, Monero, and Dash confirming their downtrend and the relatively stronger coins also taking a beating.

The total capitalization of the segment dropped below $270 billion, and from a long-term technical standpoint, several currencies are in precarious positions. With no clear news catalyst behind the move, technicals are playing a very important role, and last week’s lows will likely be in focus in the coming days.

BTC/USD, 4-Hour Chart Analysis

Bitcoin is still relatively weak both on the short- and long-term time-frames, and it dropped back to the $6275-$6500 zone that has been acting as primary support during the recent leg lower. Given the importance of the long-term zone between $5850 and $6000, a break below $6275 could set up a crucial test in the coming days. For now, traders still shouldn’t enter new positions, while investors should hold on to their coins as the bullish secular trend is still intact.

No Hiding From the Selloff as Altcoins Broadly Lower

LTC/USD, 4-Hour Chart Analysis

With the weakest coins leading the way lower again, new swing lows are likely in the majority of the coins, although there is still hope for bulls that a major long-term breakdown can be avoided. Ethereum fell below $500 after touching the declining short-term trendline, and it remains in a bearish trend, even as it’s still in a much better technical position compared to BTC, holding up well above the April lows, and being further away from last week’s swing low as well.

ETH/USD, 4-Hour Chart Analysis

 That said, we remain negative regarding the short-term outlook for the second largest coin, and traders shouldn’t enter new positions here.  Above the $500 level, strong resistance is ahead between $555 and $575, while primary support is found at $450, with further zones near $400 and $480.

BNB/USDT, 4-Hour Chart Analysis

There are no real hiding places for crypto investors from the current selloff even as Binance Coin is still holding up relatively well, within a clear uptrend and above crucial technical support.  That said, as we warned before, given the broad downtrend in the segment, traders should be cautious with new short-term positions.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
2 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 5 (2 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 279 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




Feedback or Requests?

Continue Reading

Analysis

Italy Spooks markets Again as Stocks Remain Under Pressure

Published

on

European stocks Led the way lower today despite a bullish start in Asia, as equities gave back their gains when Daimler published a surprising profit warning, which was deeply affected by the recent trade war developments, reigniting fears of a tariff-driven downturn in global trade.

DAX, 4-Hour Chart Analysis

The Old Continent got into more trouble later on, when two anti-EU officials were named in Italy, resurrecting fears of a clash between the systematically crucial country and the core of the Eurozone. Italian yields rose in European trading, and although they are still shy of the levels hit during the May scare, the periphery could be in trouble as the ECB pledged to exit the market by the end of the year.

Nasdaq 100 Futures, 4-Hour Chart Analysis

The main European indices were smashed lower during the session, with the DAX hitting a two month low, still being very weak relatively speaking compared to its US peers. US stocks sold off heavily following the opening bell and they failed to recover, unlike two days ago, and the major benchmarks traded well below yesterday’s levels just before the close.

The Nasdaq and the Russell 2000 lost some of their recent mojo, pulling back heavily of the all-time highs during the day. All in all, the risk off shift continues to dominate across the board, as we expected and we remain negative on risk assets here, especially regarding emerging markets, even as the Dollar’s rally could be over for a while.

Dollar Pulls back as Pound Surges

USD/CAD, 4-Hour Chart Analysis

The Dollar took a beating as the Philly Fed Index came in much worse than expected, and as the Bank of England sent hawkish signals, pushing the Pound and the Euro higher. The central bank left its benchmark rate unchanged at 0.5%, but a rate hike this year got much closer, with a key member of the bank voicing inflationary concerns.

The Greenback fell more than what the events would imply, so a larger scale consolidation could have already started in the currency following the recent gains and the marginal new high yesterday. With the EUR/USD pair nearing the 1.1450-1.15 support zone, the USD/CAD hitting 1.33 and the AUD/USD touching 0.7350, a meaningful counter-trend move would be timely in the surging reserve currency.

WTI Crude Oil, 4-Hour Chart Analysis

Gold continued to drift lower before the Dollar’s reversal and it hit $1262 for the first time since lat December before bouncing back above the $1270 level in late trading. Crude oil also fell sharply in early trading, and the WTI contract traded with a $64 handle before rallying back to $66 per barrel.

The OPEC meeting, which is expected to result in a supply increase by the cartel made the crucial commodity very volatile in recent days, but we expect the bearish trend to continue, with a likely dip to the $60 level in the coming weeks.

Featured image from Shutterstock

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 279 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




Feedback or Requests?

Continue Reading

Analysis

Crypto Update: Coins Drift Sideways as Trading Activity Plunges

Published

on

Liquidity dried up in the cryptocurrency segment in recent days, as trading volumes have been declining progressively, while the major coins got stuck in tight ranges. Only a few coins show signs of activity, and the bearish short-term patterns continue to dominate the market. With a group of currencies, namely Litecoin, Monero, Dash, and Bitcoin itself clearly dragging the segment down, the short-term trend will likely continue, as the previous leaders are now showing strength either.

While all of the top digital currencies are showing some gains today, and the total value of the market edged close to $290 billion, major resistance levels are still towering above. The fact that the effect of the Bithumb hack faded away quickly is a positive here, but until signs of bullish momentum and a clear leadership forming, the short-term outlook remains bearish.

BTC/USD, 4-Hour Chart Analysis

Bitcoin continues to trade near the $6750 level, edging ever closer to the declining short-term trendline, in a bearish consolidation pattern. Bulls would need a sustained move above $7000 to negate the declining trend, but for now at least a test of last week’s lows is likely with a possible move towards the key long-term zone between $5850 and $6000.  The short-term zone around $6350 level provides support, while further resistance is ahead near $7350.

Ethereum Nears Trendline as ETC Attempts Breakout

ETH/USD, 4-Hour Chart Analysis

Ethereum has been among the strongest coins in the last few days again, and coupled with its long-term relative strength, the second largest coin is still the best candidate to lead a recovery. That said, the coin still faces strong resistance between $555 and $575, and bullish momentum is suspiciously weak. Primary support is found at $500 with further zones near $450 and $400.

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic has been positively diverging compared to the rest of the market, together with Binance Coin, and to a lesser extent Tron ever since its inclusion to Coinbase, and the coin moved above the key $16 resistance yesterday in late trading.

While ETC is slightly overbought from a short-term perspective, a consolidation above $16 and a subsequent move higher could confirm a trend change. For now, the short-term trend signal is only neutral, and traders should remain cautious given the broad downtrend in the segment

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
1 vote, average: 4.00 out of 51 vote, average: 4.00 out of 51 vote, average: 4.00 out of 51 vote, average: 4.00 out of 51 vote, average: 4.00 out of 5 (1 votes, average: 4.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 279 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




Feedback or Requests?

Continue Reading

11 of 15 Seats Available

Learn more here.

Recent Comments

Recent Posts

A part of CCN

Hacked.com is Neutral and Unbiased

Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

Trending