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From Inception, to Mainnet Release and Beyond – The Whole Story of EOS

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There has been a great number of news popping up about EOS in the last few weeks. The cryptocurrency which currently holds the 5th position in market cap and was born from Ethereum, but can surprisingly defy its creator’s spot, is one of the most controversial blockchain applications to have reached the top 10.

EOS was in the middle of a very particular occasion on cryptocurrency platforms which are validated by proof-of-stake (PoS). In case the reader is not aware of it, the “official” fork in PoS blockchains – the one which will continue the main blockchain –is based on which new block has the most stakes (which new block validators trust more). This is not even close to being a problem in most PoS blockchain applications. Validators stake on the most probable block to continue the chain (the “real one”) because that’s the one they profit from. EOS uses a particular case of PoS, the Delegated Proof of Stake, in which only 21 “elected” (by voting) validators validate transactions and create new blocks. It’s sometimes considered more democratic because these validators can decide the destiny of the blockchain, but less democratic because only these master nodes can validate blocks. This supposedly makes the consensus and thus the transactions faster (with fewer nodes) and decisions independent of a central authority.

There are many dPoS blockchains out there, but this clash phenomena about EOS makes it worthy of attention and learning.

Even though the financial success, EOS’s journey has faced some scrutiny, like Vitalik’s vehement criticism on GitHub about the platform on May 3.

The controversy surrounding it recently further raised as there were conflicting groups contending for the faith of EOS before the mainnet launch. And the one which scores the most votes would be the one which would precisely decide the platform’s key aspects (and which will profit from its transaction validations, too).

The beginning

EOS was created by a company called Block.one, which raised more than $4 billion in its ICO (the highest earning ICO ever). More importantly, the first white paper of EOS was launched very recently, in 2017! Block.one turned over the project to the stakeholders – it doesn’t have any say on the future of the platform anymore. It’s, just like its progenitor, a platform where dApps can be built – but with no transaction fees. dPoS provides the opportunity for scalability (as there are fewer nodes to validate the chain) and also removes the need for fees PoW requires (since there are no miners to create new blocks).

EOS, the native token, provides a proportional usage (an x% amount of $EOS allows x% of bandwidth). Staking is proportional to usage, so developers “pay” exactly to how much tokens they own. That’s what eliminates GAS and similar prices from EOS, making it relatively free.

EOS utilizes “parallel processing” to speed up smart contracts, in contrast to most platforms, asynchronous communication allows one single process to be executed by different systems at the same time, something like new processors with several cores did in relation to the old ones.

As Block.one left the platform future entirely in the hand of its users, it’s going to be decided exclusively by the process of voting, a just decision which resulted in a good deal of controversy and market agitation.

The first clash

As a dPoS blockchain, it’s a natural and positive – albeit unusual in this magnitude – an occasion that a different delegate (or group of delegates) provide different prospects for the future of the application.

In EOS, though, it has recently reached a proportion in which two opposing groups were interested in putting forward two different projects for the blockchain – the one who wins would effectively create a hard fork in which new blocks would be validated by themselves and with their rules. According to a letter published on Medium, one of the groups, self-declared EOS Core, focusing on security, and EOS, which the main asset was an automated booting tool.

Both groups successfully forked the testnet a few days before the projected mainnet launch.

Today, there are hundreds of groups competing for the delegate position on EOS. Meetings between them and stakeholders are constantly live-streamed and subject to

Voting process controversy

Firstly, voting on a node means the number of tokens staked on it will stay locked there for three days. As EOS prices seem to be volatile, stakeholders are afraid to keep their tokens locked.

There has also been confusion about the process of casting a vote. While previously done only through a complex command line execution, some users created custom tools to facilitate the procedure.

The go/no-go meetings

To settle down the mainnet launch, a coalition called EOS Mainnet Launch Group (EMLG) of validator candidates were assembled. A voting every 24h for a “go” or “no-go”, as to whether the mainnet should or should not be decided and launched. If a decision for go is made (2/3 + 1 votes for “go” are achieved) and 15% of tokens were staked on a group, the group of the 21 block producers will be settled.

On June 9, voting was almost unanimous for “go”, so, in accord to their order of events, the Mainnet will be launched at June 10, 13:00 UTC, with random validators until the delegates receive sufficient votes.

Market events to note through EOS’s history

  • EOS achieved the #5 position in market cap in April, when its market cap raised 5x in just two weeks.
  • Criticism about its viability, voting process, bugs and Ethereum announcing Casper implementation can be correlated with its slight price drops in the middle of May
  • Value is currently rising as the Mainnet is launched
  • Near future fluctuations will be defined by, among others, aspects like Mainnet viability, delegates election and Ethereum-related updates

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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collateralized debt position
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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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