EOS (EOS) wallet

What is EOS (EOS)?

If you were to ask users and developers to list Bitcoin's most significant issues, the lack of scalability would probably rank as number one. In fact, this has continued to weigh heavily on the blockchain market as a whole since the inception of BTC in 2009, while persisting across first and second-generation networks.

To put this into perspective, Visa currently processes an estimated 1,667 transactions per second, with PayPal managing 193 during the same period of time. Conversely, BTC processes just three to four transactions per second, while second-generation blockchains like Ethereum (ETH) fare only slightly better with 20 transactions per second.

Worryingly, this problem is also being compounded by rising transaction fees, as we remain in the grip of a crypto bull run and a sustained period of increased demand. BTC offers a particularly relevant case in point here, with the average Bitcoin transaction fee ranging between $24 and $31 during Q1 of 2021.

This is where EOS enters the fray, with this blockchain-based operating system having been designed to tackle both of these issues while also supporting the development of industrial-scale decentralised apps (Dapps). More specifically, it has pledged to simultaneously drive scalability in the cryptocurrency market while completely removing transaction fees, creating greater accessibility and ease of use across a range of potential applications.

But what does this mean in practical terms?

Well, from a scalability perspective, the development team behind EOS is claiming to have developed a system that can eventually conduct millions of transactions per second, eclipsing the capacity of Visa and similarly established payment systems throughout the world.

This is underpinned by a distributed proof-of-stake (DPOS) consensus mechanism, where the creator of a particular block is typically determined through various combinations of random selection based primarily on the amount they have staked.

In the particular case of EOS, users 'vote' to choose those who they trust within the network, with those who secure the most votes referred to as 'witnesses'. They're subsequently responsible for validating transactions, with votes proportional to the size of the voter's stake. On a fundamental level, this model creates a fairer and more equal mining system, as it negates the advantage afforded to centralised organisations with considerable hardware resources under the proof-of-work model.

It also tackles the main reason why PoW models can't compute high volumes of transactions per second, as, in this instance, each and every network node must come to a consensus for requests to be completed. This is incredibly inefficient when scaling to deal with large volumes of simultaneous transactions, which is just one of the reasons why even established blockchains such as ETH are looking to transition to a PoS alternative. EOS utilises this mechanism alongside a role-based permissions concept, which allows for even greater flexibility to make instant high-level decisions pertaining to rollback and the fixing of broken Dapps.

What is the EOS token?

There are two core elements to the EOS ecosystem; namely EOS.IO and the EOS token. In this arrangement, the former is akin to the operating system of a computer, which utilizes decentralised blockchain technology to enable the vertical and horizontal scaling of Dapps.

The EOS token serves as the network's digital currency, and developers need to hold coins (instead of simply spending them) if they are to use internal resources, create blocks and run functional Dapps. Similarly, you can allocate and rent your available bandwidth to other network participants, so long as you hold onto the requisite tokens in your wallet.

As the number of decentralised apps active on the network continues to increase exponentially, it has been argued that this could create performance bottlenecks and impact on the capacity of EOS to process multiple payments simultaneously. However, the combination of the unique EOS mechanism, parallel execution and asynchronous communication methods helps to negate this challenge, as does the fact that the various modules involved in operating Dapps are separated within the network. Of course, the deployment of a DPOS system and the network's wider ownership structure also eliminates transaction charges at source, while enabling developers to utilise resources in proportion to their real-time stake.

Clearly, a great deal of thought has gone into the EOS infrastructure, with the network uniquely focused on resolving core blockchain issues including speed, scalability and flexibility. Much of the credit for this goes to the Block.One organisation, which owns the EOS blockchain and is chaired by Brendon Blumer (who has been involved in the crypto space since 2014).

The network was actually founded and launched as an open-source software back in the summer of 2017, following an extended ICO that raised more than $4 billion. Dan Larimer, who now works as the company CTO, is the man behind the initiative and initial concept, with EOS following his previous successes in the form of established crypto platforms such as Steem and Bitshares.

What is an EOS (EOS) Wallet?

We've already touched on how you'll need to hold EOS tokens to participate in the network, but the question that remains is how do you store your virtual coins safely?

The answer lies in a secure EOS wallet, which should ideally offer viable levels of encryption while taking steps to safeguard your private keys. However, there are also several different types of EOS wallet, so we've explored each of these in a little more detail below:

• Online (or Web) Wallets: Online wallets are amongst the most accessible and easiest to use for EOS holders, as they can be reached through a web browser on any device that's connected to the Internet. As the name suggests, they can be accessed through both desktop computers and smartphones, while your private keys are typically stored on centralised servers. However, this creates significant security concerns, as your funds and data may be at risk in the event of a cyber breach.
• Software Wallets: Next up are software EOS (or hot) wallets, which are similar to online alternatives and also tend to be easily navigable. They're also completely free, with the primary difference being that you'll need to download a third-party mobile or desktop app to your chosen device. Once again, you'll usually require an active Internet connection to access a software EOS wallet, while the same issues regarding security and private key storage remain.
• Hardware Wallets: Hardware EOS wallets are also referred to as cold wallets and are widely considered to be the most secure option on the market. With this type of platform, your private keys are stored securely offline, creating an additional layer of physical protection in the event of a hack. To this end, hardware wallets tend to resemble standalone USB devices with additional side buttons, while they'll typically set you back between $70 and $150 to purchase outright.
• Paper Wallets: We close with the least popular type of EOS wallet, with paper wallets significantly different from the other options listed here. As the name suggests, you'll be compelled to write down your private and public keys on a piece of paper, before storing this information in a secure, physical location. While it's completely free and non-technical, it lacks convenience and can cause huge issues if the paper is subsequently lost or stolen.

Interestingly, each wallet type offers its own unique benefits and drawbacks, which may appeal to investors depending on their individual circumstances and outlook. For example, investors who hold relatively small amounts of EOS and like to trade on a daily basis would be best served by using an online or software wallet. After all, such users are less preoccupied with advanced safety and encryption features, with their most important priority being to access their wallet regularly and without disruption.

Conversely, those of you with large EOS holdings (or significant amounts of alternative coins) should prioritise the security provided by a hardware wallet. This is despite the need to pay an upfront fee, as this should be considered as something of an investment when handling large amounts of crypto.

As for paper wallets, these are only really suitable for investors who adopt a long-term outlook and aren't required to manage their coins on a daily or weekly basis. This type of wallet certainly isn't suitable for day traders, who are active regularly and would need to have their private keys constantly to hand.

EOS (EOS) Wallet Features

If none of these EOS wallet options immediately appeals to you, you may want to consider an alternative such as Atomic Wallet.

After all, this is a completely decentralised and non-custodial wallet that allows you to hold and manage your own private key, rather than storing it on a centralised server. With this type of wallet, your keys are held in an encrypted storage space that's managed directly by you, so you'll have complete control of your funds at any given time.

Most importantly, there's absolutely no need for your encrypted private keys to ever leave your chosen trading device, enabling you to take additional steps to safeguard this information over time (we'll have a little more on this later). In this respect, Atomic Wallet offers an appealing compromise to EOS holders, who can access their funds through a connected desktop or mobile device without having to place their most sensitive data or capital at risk.

With Atomic Wallet, you can also store your EOS tokens as one of 500 supported crypto assets, while swapping these freely within the platform's built-in exchange. This includes any ERC-20 tokens that you hold as part of your portfolio, while you won't be required to verify your identity or undergo Know Your Customer (KYC) verification protocols when simply exchanging assets.

You will have to verify your ID prior to buying crypto assets directly through Atomic Wallet, though this feature is currently unavailable in the case of EOS. Similarly, you can't stake EOS tokens with Atomic Wallet at present, but this may well become a viable option in the near future.

When storing and exchanging EOS tokens with Atomic Wallet, you can also access real-time price and market cap data through the 'All Assets' tab. This page also highlights live trading volumes and any price shifts that have occurred during the previous 24 hours, helping you to track trends and make more informed decisions when managing your holdings.

As an EOS holder, you can also participate in Atomic Wallet's unique membership and rewards scheme. You simply need to buy in at the minimum requirement of 100 AWC (the platform's native token), before exchanging this with BNB on Binance Dex. Then, you can exchange freely with any asset supported by Atomic Wallet (including EOS), with rewards and cashback distributed on a monthly basis!

How to store EOS safely?

As we've already touched on, Atomic Wallet enables you to store your encrypted private keys securely on your trading device, which affords you greater control of your data and allows you to further protect it from the risk of hacking and cyber-theft.

But how exactly can you store EOS safely?

Well, given that you'll hold your 256-bit private key on your desktop or smartphone, we'd definitely recommend storing this in a password-protected file. This creates a further layer of encryption that will enable you to retain full control of your funds and data.

On a similar note, you should avoid storing your private keys using Google Drive, unless you're able to encrypt this information in a folder within your account.

Another crucial step is to backup your wallet.dat files on a regular and scheduled basis, as this will restore your data and currency holdings up to a predetermined date in the event of a hardware or network failure. Just make sure that you store your data in a secure and corporeal location, such as a USB stick or a separate hard drive.

Remember, EOS and other crypto assets are completely virtual, so the failure to back them up frequently could cause you to incur seismic and unnecessary losses in no time at all.

If you hold a mobile EOS wallet that you access on a daily basis, it's also important to ensure that your OS software is updated as and when required.

This applies whether you own an Android or an iOS device, with both operating systems prompting you whenever a software update is due. It's important to process such updates as quickly as possible, otherwise, your EOS wallet could become a relatively easy target for hackers.

EOS Price & Price history

When the EOS token was launched in early July 2017, it was valued at $0.7656. After a steady start, it was soon caught up in the exponential crypto bull run at the end of 2017, with the asset's price rising to $10.73 by the end of the year.

This trend continued into Q2 of 2018, during which time EOS reached a peak price of $14.67.

However, the subsequent crypto bear run sent the price of a single EOS token as low as $1.86 by December that year, with the asset continuing to hover around this value ever since (spare for a few temporary spikes in 2019 and prior to the coronavirus outbreak in February of 2020).

However, it certainly looks to be on the march in the wake of the latest crypto bull run, which has been sustained through Q1 2021 and is expected to continue for the foreseeable future at least. For example, EOS was priced at just $2.74 at the beginning of the year but has since increased nearly three-fold to $7.71 as of April 15th.

Interestingly, the value of EOS could rise further in 2021 and peak as high as $12 per token by the end of the year, with its unique operating model and scalability efforts making it one of the best and most coveted altcoins in the current marketplace.

The Top 5 things to know about EOS

• Prior to the EOS mainnet being launched on June 10th, 2017, EOS embarked on a record-breaking, year-long initial coin offering (ICO) that raised a total of $4 billion for the crypto startup!
• Thanks to the distributed proof-of-stake model (and role-based permissions concept) deployed by EOS, developers have created a network that has the potential to handle more than 50,000 transactions per second at present. There's also considerable scope for further growth in the future.
• In addition to the proposed price growth in 2021, EOS is also expected to see its value rise incrementally through to 2025. More specifically, conservative estimates suggest that it's expected to peak at $17 per coin in 2022, before reaching a minimum price of $35 in four years time.
• The possession of EOS tokens alone is enough to access the network's blockchain resources, so you'll simply need to provide proof of your holdings to conceive and develop decentralised apps!
• Interestingly, there's no full name for the EOS abbreviation, as the founders decided not to provide any official explanations. This has led participants to offer their own interpretations, including suggestions such as the 'Ethereum Operating System' and the 'EOS Operating System' amongst others.