Whether you're new to EOS Investing, thinking of getting back in, or just want a refresher on why invest in EOS — this article is for you.
EOS has been around for a while. While it does not get as much hype as Ethereum, it is one of the most practical platform blockchains for Dapps development. This makes it one of the best crypto projects to bet on, now that the Dapps market is getting bigger. To help you make an informed investment choice, here are 15 reasons to buy EOS today.
Below we cover 15 major reasons why you should invest in EOS and why EOS investing can be so powerful. First, let's start with the hard fact-based reasons to invest in EOS and then we'll transition into some less discussed, but still important, reasons to invest.
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15 Reasons why you should invest in EOS
There are all kinds of reasons why you might want to invest in EOS — probably some you’ve never considered. Here are 15 that we found.
1. EOS is highly scalable
One of the key factors behind the adoption of blockchain technology is scalability. For context, many payment Dapps have found it almost impossible to compete with the likes of Visa due to poor scaling. To better understand scalability, one needs to look at Bitcoin.
As per its whitepaper, Bitcoin was meant to be a replacement for legacy payment systems. However, with its continued adoption, this has become untenable. Not only are the transactions slow, but the costs have also become impractical. Similarly, Ethereum’s scalability issues have made it almost impossible for most Dapps to run efficiently.
EOS does not have such problems, as it was designed for scalability. It is one of the few platform blockchains that can handle thousands of transactions per second without clogging up the network. Some applications like crypto kitties that clogged up Ethereum can run efficiently on EOS without much of a problem.
With such a high-efficiency level, EOS stands a good chance of adoption as society accepts decentralized technologies. By extension, this means the value of EOS (EOS), the blockchain’s native currency, will increase. This is a pretty good reason to invest in this crypto now.
2. EOS is free to use
The internet applications space is crowded and highly competitive. Not only do developers have to compete on features, but costs as well. This puts many Dapps at a disadvantage for two reasons. First, most platform blockchains are yet to reach a level of efficiency that matches centralized systems. Secondly, the most popular ones are too expensive to use, and the cost keeps going up with increased adoption.
For context, last year Ethereum gas prices shot up so high that most developers started looking for alternatives. One of the primary beneficiaries of this was Binance Smart Chain. However, this too recorded an increase in costs as usage surged.
These problems are non-existent in EOS. The blockchain is not only highly scalable but also free to use. This allows developers to come up with innovative Dapps that can compete with applications developed on centralized systems. As more developers discover the power of EOS, its usage will rise as well. This is a factor that plays to its advantage in the long run. It is one of the strongest reasons to invest in EOS now, and hold for the long haul.
3. EOS is easily upgradable
No software or software development platform is perfect. What makes the best stand out is the ease of upgrade. This has been one of the key factors behind the slow adoption of blockchain platforms for Dapps development. EOS was developed with this issue in mind. On EOS, bugs are easy to identify and fix.
The platform also has regular smart contract upgrades. These ensure that all smart contracts that run on the platform are precise, and work as designed.
From a user perspective, this has a number of advantages. First, users are guaranteed that all smart contracts will run as expected. This eliminates the risk of loss, especially in the execution of financial contracts. Secondly, there is a reduced risk of hackers taking advantage of system vulnerabilities to steal.
These advantages place EOS at the forefront of adoption as decentralized systems take root in society. Naturally, this means the potential for EOS (EOS) demand increase is quite possibly limitless. Therefore, for someone looking to make money in crypto long-term, EOS makes a lot of sense to invest. It is akin to investing in big tech in their startup days.
4. EOS has a low latency – Possibly the lowest in crypto
Imagine trying to interact with an application that takes minutes to respond, terrible right? You probably would not use such an App again. This is exactly the problem that most Dapps deal with all the time. Users have to endure applications that feel like 1990s experimental tech.
The problem is usually not the App developer but the platform they are built on. When an App is built on a platform that can’t scale properly, such issues result. The consequence is that most Dapps cannot compete with centralized systems, and this is a huge bottleneck to adoption.
EOS is one of the blockchains that envisioned this problem. The latency on EOS is so low, that any Dapp built on it is indistinguishable from Apps built on legacy systems. This has seen the number of developers on EOS rise over time. With the current global acceptance of decentralization as the future of tech, this is good news for EOS. It means that this platform stands to be adopted, even more, a factor that will drive up the value of EOS (EOS). This is an excellent reason to invest in EOS now.
5. EOS offers sequential performance
Lots of platform blockchains use parallel algorithms in application development. While this works for some applications, it can be limiting in some situations.
For instance, a cryptocurrency exchange cannot be built using parallel algorithms. It needs to be programmed sequentially for it to handle high volumes, and fast. EOS takes care of this by allowing for both parallel and sequential development. This means it can be used for building complex applications such as crypto and forex exchanges among others.
This is a big deal because if decentralized systems are to replace legacy systems, they have to offer a similar level of performance. Someone looking to build a space application should feel comfortable doing so on a decentralized system, just like they would on a legacy system.
In essence, EOS in a good position for adoption in building complex applications. This places it in a good place for adoption going into the future. It is a factor that could see the value of EOS (EOS) keep rising over time. This quite naturally makes it a good buy for anyone who is looking at the market long term. Fundamentals always win, and this one has them.
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6. EOS Consensus algorithm is optimized for performance
The consensus algorithm that a blockchain uses is key to its efficiency. This may explain the current excitement around Ethereum’s shift to Proof-of-Stake. The upgrade is expected to see this blockchain become more scalable. On this front, EOS is much ahead of other platform blockchains. It makes use of a Delegated Proof of Stake (DPOS) algorithm.
Through this algorithm, EOS token holders can choose block producers in a system that allows for perpetual voting. The system also ensures that new blocks are produced on time. If a block producer goes for a day without producing a block, they are automatically kicked out.
The implication is that EOS transactions are almost instantaneous. This is a big deal because it makes the EOS token one of the most practical for use as a currency.
In a world that is increasingly receptive of digital currencies, this crypto is in pole position for adoption as a currency. Besides, it has been around for a while, which means it is a proven technology. This is a good enough reason to invest in it now with the future in mind.
7. EOS uses human-readable addresses
Cryptocurrencies use long addresses for transactions. If you miss just one letter or number, you could lose your money. It feels more like using a computer before the likes of Microsoft came up with the current user interface. EOS solves this problem by applying human-readable addresses that most people can understand. The address name can be up to 12 characters long and is created by the account holder. It is more like a phone address book.
This is a big deal in bringing in more users into crypto, akin to the mass adoption of the personal computer after the friendly user interface was built.
It places EOS at the forefront of cryptocurrencies that can be used for everyday payments and effectively compete with centralized systems. Besides an easy-to-use interface, EOS has the advantage of being decentralized, which means there is no intermediary who can block your transaction for whatever reason.
Since adoption is the key source of value for cryptocurrencies, it goes without saying that EOS is among those that are primed for growth long term. This makes it one of the best cryptocurrencies to invest in now.
8. EOS allows multiple people to use the same account
The idea of multi-signature wallets is not new in crypto. However, as discussed above, such wallets use cryptographic addresses, which are only helpful to people familiar with crypto. In EOS, it is possible to segregate the people who can use an account using human-readable names.
For instance, you can have an account named family, friends, etc., and include the parameters of what they can do in the account. This is a big deal because it means EOS can be used as a checking account. For instance, if you have kids that need a specific amount of money every day, all you have to do is create an address for them and give them the login details.
They can then be drawn from it for their daily needs without interacting with complex cryptographic addresses. This puts EOS at the same level as a bank account, albeit a decentralized one. It’s a big deal when it comes to adoption, especially now that society is coming to terms with the idea of decentralization. Quite naturally, this makes investing in EOS now a perfect idea.
9. EOS allows for the recovery of stolen keys
In crypto, private keys are everything, if you lose them, then you are done for. There is no recovery mechanism. But therein lies the problem, if there is no way to recover stolen money, how can cryptocurrencies ever come close to competing with the legacy banking system? With a bank, you are always guaranteed that if anything happens, the money can always be traced and reverted back. This is the reason why people leave millions of dollars in a bank and feel comfortable with it.
EOS is one of the crypto projects that have addressed this problem. The EOS software allows for the owner of private keys to restore them when stolen. All they have to do is use an address that has been active in 30-days, and approval from the account recovery partner.
The best part is that the account recovery partner is not in a position to take control of the account. Only the owner has this power. With such a high level of security, EOS is one blockchain that stands to see huge adoption going into the future. It makes perfect sense to invest in it now.
10. EOS makes things easy for developers
One of the main issues with blockchain technology is that if you run a full node, then you have to download the entire blockchain.
This impedes scalability but EOS has a solution. It allows one to only download what they need. For instance, a person looking to build social media applications only needs to run a subset that allows this to become a reality. They can then ignore other states of the software that may not be useful to their program. This is a key factor that could help draw in more developers into EOS.
As more developers come in, so will the type of innovations that run on this blockchain. For instance, there are tons of highly innovative payment applications that can be built on EOS. There are also massive opportunities in social media. With the ever-increasing intrusive nature of social media and the increasing hacks, the time is ripe for a blockchain-based social media platform. EOS is perfectly suited for such.
Not only does EOS make the process easier for developers, but it is also one of the most scalable blockchains around. This means it can handle a load of such applications easily and without much latency. Such potential is a good reason to invest in EOS in the expectation of long-term growth.
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11. EOS has an efficient bandwidth allocation mechanism
Bandwidth allocation is key to the growth of any blockchain. It enhances scalability, and also makes applications much more efficient to the end-user. To ensure that bandwidth is properly distributed, EOS allows for the delegation of all unused bandwidth. The idea is that anyone with unused bandwidth can rent it out their unused bandwidth. This is one factor that has made this blockchain one of the most efficient in the market.
Not only does it make it fast, but it also creates an internal, and robust market for EOS tokens as users trade their bandwidth. This also has the effect of lowering costs on this blockchain. Related to this is the fact that the EOS blockchain separates the token value from transaction costs.
This is advantageous in that it takes away the volatility that comes with cryptocurrencies from the development process. It is a factor that will play into the adoption of this cryptocurrency by developers, and drive up its value. It’s a good reason to invest in EOS now in anticipation of more adoption.
12. EOS has an efficient governance system
The governance structure of a cryptocurrency is a key factor to its long-term success. EOS has one of the best governance structures in the crypto space. That’s because part of the EOS governance structure is the election of block producers.
Any block producer that does not operate in line with the aspirations of token holders is automatically kicked out. Also, as part of the governance structure is the fact that it safeguards the permissions of all token holders. In essence, if any of the block producers make changes without the authority of the token holders, such changes can be rejected in a vote by token holders.
However, block producers do have some powers too. For instance, they can block an account if it is associated with a smart contract that is acting in an unpredictable manner. Such accounts can be frozen if 15/21 of the block producers vote to do so. Essentially this governance structure ensures that EOS runs efficiently, and safely at all times. This makes it attractive to developers, and investors, a factor that will play into its growth going into the future.
13. EOS has an easy protocol upgrade procedure
Protocol upgrades in a decentralized environment are not easy. There are too many people involved in that decision, and disagreements can stall it.
This explains why some blockchains remain inefficient for years, a factor that hampers adoption. EOS is one of the few exceptions that make protocol upgrades easy, while at the same time staying true to the ideals of decentralization.
For a protocol upgrade to be effected on EOS, a block producer, or producers, need to propose a change. They should then seek the approval of all other block producers and must get the approval of 15/21 of them. The block producer must then maintain this rate of approval for 30-days consecutively.
Once the 30-days are over, all EOS users are asked to accept the new constitution as part of future transactions. Once this is done, every block producer incorporates these changes as part of the source code. It automatically becomes part of the EOS constitution. The changes then take effect after 7-days.
This process is quite straightforward and allows for easy changes depending on the market needs. Essentially, it means that EOS will always move with the market needs and that guarantees adoption. It’s a key reason to invest in EOS now, as blockchain adoption takes shape.
14. EOS is on all major exchanges
Where a cryptocurrency is listed is important. It plays into its availability, and by extension its liquidity. The more the exchanges where crypto is listed, the higher the chances that it will be accessible to new investors, especially in bull markets.
EOS scores quite well on this front. You can buy EOS on pretty much all major exchanges. This is quite evident in its price action. All through the early market rally last year, EOS was one of the most stable cryptocurrencies. For someone looking to invest now, this aspect of EOS makes it a pretty safe buy.
You are guaranteed that no single player can lead to a significant change in the market dynamics. This makes it relatively safe especially in times of market downturns. In a market as volatile as crypto, this is a good reason to invest in EOS. Besides high liquidity, the costs of transactions are lower, and this is attractive to new investors’ long term. It could play into its price action in a positive way during bull markets.
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15. EOS is highly volatile
Volatility is both good and bad. For those who do not know how to read market cycles, it can be terrible. However, for those who do understand the market dynamics, this can be a great way to make money.
For context, in 2017, EOS recorded tremendous gains before it crashed in 2018. It then picked upside momentum in late 2020 and has gained consistently since that time.
This volatility is very attractive to traders looking to make money in the crypto space. With more people becoming aware of this market, this volatility will draw in more traders into EOS. That is a good reason to invest in this crypto now, and ride the wave’s long term.
EOS has the tech of a forward-looking blockchain. It is highly scalable and has security safeguards that rival those of centralized systems. This makes it perfect for the development of complex applications in a decentralized environment. With the entrenchment of decentralization in tech, this is one project that makes is worth betting on for the future.
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