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NOTE: At the end of the article, we have a GetSmart Quiz for you. If you correctly answer all the questions, you will receive (1) entry to win $4,000 CAD of Bitcoin! Draws are held at the end of every calendar month. ## In Brief: • Founded by Dan Larimer and the Block.One team, EOS was built to create industrial-scale dApps. • EOS had a record-breaking year-long ICO that raised$4.1 billion.
• EOS.IO is the underlying system that powers the EOS blockchain.
• EOS works using an ownership model that provides resources to token holders.
• The underlying consensus mechanism is delegated proof-of-stake (DPoS).

## What is DPoS – The Heart and Soul of EOS

Alright, now let’s get into the meat and potatoes of EOS.

DPoS is one of the most controversial elements of EOS and is a modified version of the proof-of-stake algorithm. Before we go any further, we highly recommend that you read up on PoS here.

To give you an idea, PoS is a staking-based consensus mechanism that randomly picks validators for the list of stakers and gives them the power to validate blocks. The validators are either chosen based on the size of their stake or coin age, aka, how long they have been staking their coins in the network.

However, in EOS, the DPoS system works like this:

• 21 block producers are elected by the token holders. These block producers are responsible for overall network health and future block validation.
• Up to 30 block producers are chosen in the initial election. The voting system is continuous. As such, the top 21 are continuously selected from this top 30.

According to a September 2019 article by CoinDesk, the majority of the block producers were within China.

When it comes to revenue distribution, the top 21 earn the most significant amount, while another 50 earn some rewards as standby BPs. They are rewarded from the aforementioned 1% annual inflation.

By relying on the top 21 block producers instead of the entire network, EOS can unlock extremely fast and cheap transactions. The block time in EOS is just 0.5 seconds as opposed to Ethereum’s 15 seconds. However, this speed comes at the price of decentralization. You need to ask yourself if that’s a fair price to pay for achieving faster transaction speeds at the end of the day.

## EOS Three Years On. What’s Going On?

Since reaching an all-time high of $22.89 in April 2018, the EOS price has spent most of the last 3 years hovering around$2.50-$2.60, before the recent crypto market rally took it up to ~$6. However, it is hard to debate against the fact that EOS has had a bit of a fall in public sentiment over the last few years. Back in June 2019, Decrypt reported that as many as 75% of transactions on all EOS dapps are bot-made! In fact, half of all the EOS accounts using dapps were bots.

This was once a top 10 coin and now it is languishing around rank 27. EOS had a lot to live up to. From its multi-billion dollar ICO to its crypto rockstar co-founder Dan Larimer (who has since left the project). The rise of DeFi and Cardano has taken some of the sheen away from EOS, however, write them off at your own peril.

## Alright, it's quiz time!

Before you take the quiz, make sure that:

• You have a verified CoinSmart account (to get your reward if you successfully answer all the questions).
• You use the same email in the quiz that you use to register your CoinSmart account.

EOS GetSmart Quiz: Answer All The Questions And Earn An Entry To Win \$4,000 CAD of Bitcoin