Sunday, June 3, 2018

The Most Significant Aspect About EOS That Will Take Blockchain Technology Mainstream.

FREE TRANSACTIONS!

Free transactions means you can interact with the EOS blockchain free of charge. You can transfer your tokens from one wallet to another free of charge.

Lets say you have a social media app like "Twitter" for example running on the EOS platform. The developer will have to stake EOS tokens to get access to bandwidth to host his application. The more popular his app gets the more bandwidth they will need and so will have to purchase or "borrow" EOS tokens for staking.

The users can post their "tweets" without paying any fees! ( In Memo.cash you will still have to pay a small amount of BCH to make a post.) Free transactions means anyone can join and use even if they don't hold any tokens. This removes the biggest hurdle in on-boarding new users to their app. Works exactly like Twitter and Facebook without the costs. This makes it possible take the app viral and scale.

So how does the economics work?

App developer

1) They can make an airdrop onto EOS token holders and therefore publish their app to the whole of the EOS community. Instant publicity and user base. 

2) They could airdrop 80% of their tokens and hold back 20%. If their tokens trade on the exchange they have effectively raise finance for their project without doing an ICO which in itself carries costs, and legal implications.

3) They could monetise their app just like Facebook and Google ie displaying advertising.

4) Best of all they can host their app without running huge server farms. So they can have a Facebook, Google or Ebay like application without the costs.

User

1) Free to post and interact with the app means that they can bring in their whole social network without any friction. They can use the EOS blockchain without knowing that they are using it.

2) They can earn reward tokens from the developer for using the app.

3) Their personal data  will become their own property and valuable. This change in "ownership" will have wide implications for the world. It delivers the holy grail of blockhain technology which is to return power to the individual. Nothing can be taken from us without our permission.

4) If they hold EOS tokens they will receive a string of airdrops like dividends with the bulk of it immediately after the mainnet launches.

5) They will be able to stake their EOS tokens to earn "dividends" be it for bandwidth or ram.

EOS

1) The aspect of locking up tokens removes them from the circulating supply and so will increase the tokens value. 

2) Being able to scale from day one is most significant. This by itself will bring over many of the apps that have already deployed on Ethereum but have floundered because of scaling issues especially in relations to cost of transactions. If EOS proves that it really can scale from day one then there is no stopping its price from "going to the moon".

3) EOS is not designed to be money. But being free to transact and being able to scale to billions of users may just make it so. 

By the look of things EOS have grasps and resolved many of the issues that are still besetting the more established blockchains like Bitcoin and Ethereum. We have always said that the future belongs to blockchain but it may not be Bitcoin. Looks like EOS has a good chance of being just that.

Just watching the worldwide EOS community come into coalescence, is just magical and awe inspiring. Nothing like this have ever happened before. Coins are usually "launched" and then toss down the mountain to gather momentum and users. This process actually brings everybody up to he mountain to lift the boulder together before tossing it down the mountain. It is a community that has learned from all the difficulties of the past 10 years, since the launch of Bitcoin. GO EOS!