Friday, June 8, 2018

A Third Reason Why EOS Will Take Blockchain Mainstream

Apps and DApps 

Bitcoin was introduced by software developers to the world in 2009. It survived and grew because a few people saw the innovation in the technology, got hooked, nurtured it and promoted it. Gradually other software developers, users and speculators bought into the revolution and a movement was born.

The main push for Bitcoin was use as a currency. You could pay anyone anywhere in the world nearly instantly and with very low fees. So begun a game of cat and mouse with authorities because, a parallel monetary system, if it takes root, strikes at the very core of established power structures.

Unfortunately for the authorities, Bitcoin is decentralised software and despite their best efforts Bitcoin found more and more users worldwide, and established financial media like Bloomberg and CNBC started introducing it into the mainstream financial mindspace. When institutions started introducing financial products based on Bitcoin, Bitcoin has arrived. However this is a fast moving space and mainstream will always be steps behind.

The internet is where it is today because of all the applications that was built on it like Email, Webpages and streaming media. Applications that we use without any understanding of how the underlying technology works. Bitcoin was meant to be this underlying layer on which applications like coloured coins, notary services and others were to be built. However many of the op-codes in Bitcoin were disabled making it difficult or impossible to build these applications, perhaps because developers realise that as it was, Bitcoin could never scale to the millions of transaction required to accommodate these applications. That started the great debate on how to scale Bitcoin.

While this argument was going on, Ethereum emerged in 2013 specifically as a platform to build smart contracts and decentralised applications. It became the platform on which smart contract tokens were issued for all kinds of uses. The huge increase in price of Ethereum reflected how relevant and useful this concept was but again, as demonstrated by an app called Crypto Kitty Ethereum could not scale to the required level either.

And so we have EOS. It claims to do everything Ethereum can and at scale. That this claim is taken seriously is reflected in the price. Even without a running blockchain it holds the number 5 spot in Market Capitalisation. 

Apps and Dapps will take EOS mainstream.

The EOS blockchain will launch tomorrow. ( June 9 ) This will bring in the next phase of the crypto revolution. Apps that can on board huge number of users will be build on this platform.

Everipedia is set to overtake and replace Wikipedia and in 2017 has millions of users and more than 5 million page views per month and growing. These are numbers that Ethereum is unable to accommodate. Free transactions on EOS is also an important factor.

Ethfinex a decentralised exchange to be built by the very successful Bitfinex. All exchanges are centralised to handle the huge number of transactions. Ethfinex and many similar decentralised exchanges are being built on EOS.

This article introduces some of the apps that will be live on EOS in the near future, very quickly after the launch. Many apps currently built on Ethereum will move over to the EOS platform just so that it can run as designed.

What it amounts to is that EOS will pick up users like Bitcoin and Ethereum never did and these users will not need to hold any EOS tokens. This is important because needing to hold tokens in order to use an app just adds friction. You do not not need to hold any tokens to click a like on Facebook, so a decentralised Facebook like app has no chance of usurping Facebook if it needs tokens to interact and use.

If EOS manages to pick up uses on a grand scale, it will just suck up all the oxygen in the crypto space and leave other coins lagging. That EOS will change the shape and landscape of the crypto space is certain. What is uncertain is what it will look like when the dust settles.

Will there be only one coin left standing or will there be different coins for different purposes? Will EOS be a platform on which everything including Bitcoin is built? Will another platform that is even more decentralised overtake it?

We will see, but for the foreseeable future, it is hard to envisiage how EOS can be overtaken. Especially with no other technology even close to achieving scalability on the horizon.