EOS: a next-generation blockchain focused on scalability

Important: detailed analysis

Introduction to the EOS Protocol

EOS is a Layer 1 blockchain network designed to overcome the performance issues faced by modern distributed systems. Along with Bitcoin and Ethereum, this platform is among the early blockchain projects and provides developers with the tools to create decentralized applications and entire ecosystems. Due to its architecture, EOS opens up opportunities for blockchain applications in logistics, DeFi services, game finance (GameFi), and other industries.

The History of Development and Transformation of EOS

The open-source EOS platform was launched in 2018 by B1. In its early existence, the project demonstrated significant technical achievements; however, later the pace of development slowed down, and venture capital investments in the ecosystem decreased. As a result, many projects built on EOS faced resource shortages.

To address these challenges, the community created the EOS Network Foundation (ENF), an organization responsible for efficient capital management and infrastructure development. Block producers agreed to lift the lock on B1 tokens, transforming EOS into a decentralized autonomous organization (DAO).

On September 21, 2022, a critical transition occurred: community engineers led by the ENF migrated from EOSIO version 2.0 to Leap 3.1 — a new implementation of the Antelope protocol based on C++. This ensured complete code independence and further development of innovative features to address scalability issues.

Technical Foundation: How EOS Works

Consensus and tokenomics

EOS uses a DeleGated Proof of Stake mechanism (DPoS), which allows the network to achieve high efficiency at relatively low energy costs. The native token EOS serves as a utility tool: it is used to acquire system resources, participate in network governance, transfer in applications, and secure asset value. Token holders have the opportunity to participate in staking and earn a share of fees through the EOS PowerUp Model.

High-performance virtual machine

At the core of EOS is the WebAssembly engine (WASM) — a specialized compiler optimized for executing smart contracts. Unlike browser implementations, this version of WASM is designed with the requirements of blockchain applications in mind, which need to process significantly larger volumes of data.

Architecture for speed and reliability

The main advantage of EOS is its ability to provide high throughput without requiring consensus from all nodes in the network. The asynchronous verification mechanism in DPoS ensures fast confirmations and minimal delays, reducing the interval from transaction initiation to its finalization.

Compatibility with the Ethereum ecosystem

EOS EVM is a virtual machine compatible with the Ethereum standard, providing Solidity developers the opportunity to utilize the scalability and reliability of EOS. Transaction fees remain minimal, and the familiar Ethereum toolkit is fully operational.

Flexible Access Management System

The EOS architecture includes a multi-level account management system that allows users to customize permissions for various operations. Account owners can delegate authority to third parties with the option to revoke access. The hierarchical structure of accounts allows for the control of multiple smart contracts from a single account, and the management of contract changes can be distributed among several participants.

Upgradability of applications

The EOS protocol allows developers to modify application logic, add new features, and update code with the appropriate permissions. At the same time, the platform supports the creation of completely immutable contracts — the choice is up to the developer.

Programmable economy and management

Developers gain the ability to modify system contracts to create unique economic models and governance mechanisms. Since such changes are made at the contract level rather than the protocol level, updating the underlying layer is not required.

Distinctive Features of the EOS Platform

Readable account addresses

Instead of standard cryptographic strings, EOS uses easily memorable account names, such as “Alice.gm.” This significantly eases user interaction with the platform and enhances the accessibility of Web3 for the general audience.

Transaction Efficiency

The low fees of EOS make the platform ideal for micropayments and small transactions. This contrasts with the high gas fees in other networks, which significantly increase costs for users.

Finalization Speed

Transactions on EOS are completed in about three minutes, which is significantly faster than Bitcoin ( at 10 minutes) or Ethereum ( at 6 minutes). However, compared to centralized systems, this remains slow. To address this shortcoming, ENF, together with the Antelope coalition, launched the Instant Finality initiative aimed at ensuring instant and irreversible execution of transactions.

The Eco-friendliness of Consensus

The DPoS mechanism does not require energy-intensive mining, characteristic of Proof of Work systems. This allows EOS to be one of the most environmentally friendly blockchain platforms in the industry.

Built-in security system

The Recover+ program (R+) is a cybersecurity tool and incident response center designed to protect DeFi projects in the EOS ecosystem. The program encourages responsible disclosure of vulnerabilities and ensures rapid asset recovery in the event of hacks.

An example can be the incident on November 5, 2021, when the Pando Rings platform was attacked, and funds amounting to over $70 million were stolen. Although Pando Rings itself was not built on EOS, the attackers also withdrew EOS tokens worth more than $2 million. Thanks to the Recover+ program, the team was able to freeze the stolen assets, protecting users of the EOS ecosystem.

Ecosystem Support and Investments

Coordinating Role of the EOS Network Foundation

EOS Network Foundation (ENF) is a community-driven non-profit organization founded in September 2021 by Yves La Rose. The Foundation focuses on identifying investment opportunities, organizing funding, and developing partnerships to stimulate innovation in Web3.

ENF coordinates the funding of initiatives that are of interest to the community and provides non-financial support for the growth and mass adoption of EOS. Since its inception, numerous community programs have been launched, resulting in key developments for the platform.

Working Groups of the Ecosystem

After the establishment of ENF in 2021, the fund began financing specialized working groups focused on improving various aspects of the ecosystem. Priority areas include core infrastructure, APIs, SDKs, DeFi integrations, and security auditing tools.

Venture wing of the ecosystem

EOS Network Ventures (ENV) is a venture fund with a capital of $100 million, aimed at attracting and investing funds in the development of EOS infrastructure. ENV makes strategic investments in technological startups within the Web3 space, including sectors such as GameFi, metaverses, eSports, NFTs, and fintech.

On November 9, 2022, ENF initiated a proposal to launch an additional ecosystem fund amounting to $100 million, which will be managed by ENV.

Conclusion

EOS, being one of the first developed blockchain platforms alongside Bitcoin and Ethereum, has successfully overcome a period of difficulties and adapted to current market demands. The platform creates a reliable infrastructure that combines high performance, architectural flexibility, and horizontal scalability. These qualities make EOS an attractive solution for both developers and end-users looking to operate in the GameFi space and decentralized Web3 applications.