EOS Update Summary: Dawn 3.0 a Game Changer?

Today we're going to take a look at EOS. So EOS has really taken to the moon recently with a 45% growth in the past 24 hours. So something ridiculous is happening. What we're going to look at is we're going to talk about what is EOS first of all, the current state of EOS as well, what's happening with the DAWN 3.0 update, some reasons for this massive explosive price increase as well, and then last thing we'll talk about my personal feelings towards EOS. Will I buy it right now at its current state? I do want to say, of course, before we start, this is my personal opinion and not financial advice. So let's start off by looking at what is EOS. So EOS, it claims to be the most powerful infrastructure for decentralized applications. So what does that even mean? Well, to understand this, we kind of have to look at our current infrastructure. If you look at Reddit, Facebook, even Twitter, they're all centralized. They belong to single companies and they're run by the central team and they have a lot of control over that platform. Well, we have alternatives. For example, Steemit is a decentralized version of Reddit. You can post on there. The network is owned by the community as a whole. And as a result, that means that there are certain affordances given to the community to guide the growth of Steemit. And that's what EOS is trying to do. It's providing the infrastructure so we can have more decentralized applications, even maybe a decentralized Twitter or even build another decentralized Reddit on top because one of the guys behind EOS, he's Dan Larmer. He's the guy who built Steemit and he's basically, yeah, you know what? You can build Steemit on EOS. So you provide the infrastructure and you can probably easily build that without having to flesh out your own blockchain without using like all those tools, developing all yourself. EOS is going to provide those tools for you. For example, they want to provide file storage, maybe user management, even the blockchain itself. You don't have to worry about all these technicalities of how to get maximum transactions per second. EOS is going to do that for you. And when you build the app, you're going to just have to worry about what your app is trying to do. So that's kind of the core objective of EOS. Now, what is the current state of EOS as well? Because EOS, I think, confuses a lot of people because it's not exactly a full blockchain yet. Right now, it's a development in progress project. And at this current state, they're actually still in an ICO phase. So they're still selling tokens. So these current tokens that EOS is what you're buying right now, they're actually on Ethereum, which is kind of the irony because they're kind of competing platforms. They both want to decentralize everything. But EOS right now, they're ERC20 tokens living on the Ethereum platform. And eventually, once the EOS platform is fully built out, once the ICO phase ends, then you can swap those ERC tokens for the tech tokens on the EOS network. So they're going to be a token swap in the future. So at this current point, they're still doing ICO. They're still doing a daily distribution of funds. Now, let's talk about the latest updates because this is probably what excites people the most. And in fact, that's what excites me the most because this is an update of how this project is being developed right now. So this is uploaded early in April. It's called DAWN 3.0. So it's the third version. It's the third development preview, if you want to think of it like that, for the EOS platform. EOS has already demonstrated in DAWN 1.0, 2.0 that they can have this network running. With 3.0, they're giving a very optimistic outlook for what's going to happen in the future of EOS. What they're saying here is that the development process so far has been a little bit easier than they expected from the white paper, from the plan to build this project to this current state. They were pretty much moving ahead. We've seen with DAWN 1.0 and 2.0 that they were moving ahead of schedule. And here with the 3.0 release, they're kind of reporting, yeah, we can probably even add more to it because it was a little bit easier than what we expected in the white paper. In terms of transactions per second, they're saying, you know what, the worst case is around a thousand transactions per second, best case around 6,000. And you know what, we can do a little bit more to push it up to 8,000. Now, the last part is a little bit confusing as well, because they're talking about unlimited transactions per second, because this article has been focused on the ability to interconnect blockchains. How to do blockchain scaling? We know that if it's just a single blockchain, it's going to meet with scaling issues. But what if EOS is multiple blockchains? What if they're just communicating with each other and we can put things off chain? This is something that we're doing on the Bitcoin network with... This is something the Bitcoin network is trying to do with Lightning Network. We also have write-in on Ethereum to do off chain scaling. And Ethereum's even got more things such as plasma going forward. So what they're trying to do here is almost every single blockchain project is trying to do inter-chain and EOS is like, yeah, we got an option for that too. And we got a proposal for how to do this in the future. It just involves sticking in a light client and a smart contract and we can do that too. So they're really saying, yeah, we're up to par with everyone. We want to do massive scaling. We also have a lot of features that we're bringing into the table as well for infrastructure for developers to really easily write code and have a kind of a platform there to support it. So that's kind of the core difference at this current point between EOS and Ethereum, because they're both smart contract platforms. They're both trying to do decentralized applications. The approach that EOS is taking is that, well, we're building this all from scratch. So the development's a little bit faster. And on top of that, we want to build the tools and the infrastructures for development. On the other hand, Ethereum is more like a platform. They're like, okay, we're already running. We've been running for a while. We've been proven that this is very successful. In fact, there's plenty of ERC tokens living on Ethereum. The fact that EOS right now is using Ethereum to host their tokens goes to show how stable Ethereum is. So at this point, Ethereum is also trying to scale up as well, but their kind of philosophy behind it is that, well, let the developers develop their own tool. We're not going to provide infrastructure ourselves. That way, developers can come on board with their custom infrastructure and it will be very clean. Whilst EOS probably will be more like, okay, we have all this platform here. Don't worry about this. But if the developer wants some custom features that's not available, then they'll probably either have to wait or move to another platform. So that's kind of like the difference that I see between EOS and Ethereum. There are also probably other reasons for why EOS is going up a lot in price as well. They're trying to develop a new ecosystem. That's something that Ethereum has successfully built over the past year or so. So EOS is saying, yeah, you know what, we're going to try to inject money into incubator programs, almost up to 200 million for a joint partnership. This is recently announced by BlockOne. But it seems like the direction that they're trying to do is they're trying to encourage developers to come on board to start developing because that is the most important part. We see with Ethereum, the development of the ecosystem really encouraged the mass adoption of Ethereum in the development space. And then of course, even NEO, they were constantly trying to support the developers. So EOS is doing that as well with these major funds being announced. Another reason for this possible rapid price increase is a new airdrop announced by one of the projects that's being built on EOS called EOSDAQ. So what they're going to do is they're going to distribute 75% of their tokens, which is a lot of tokens to the EOS community. So if you hold EOS, and I do want to state that you want to be holding EOS yourself and not holding EOS on an exchange if you want to have this airdrop, because when the exchange takes it, they have the right to do whatever they want with this airdrop. Whereas if you hold it in your wallet, you have it yourself. They're going to be distributing the tokens on April the 15th. And this is probably one of the reasons why everyone's like, yeah, let's buy it up, let's buy it up before April the 15th so we can get this airdrop. Now let's come back to what I think about this whole situation. So I'm very excited for the core technology of EOS. I'm very excited for their launch. Right now, of course, there's still a lot of speculation because this is a project that's not launched yet. It's not a fully launched network. And a lot of the developments right now are promises to develop. You know, if the platform's not ready yet, the foundations are not ready, the apps on top of them won't be going ready yet. So there's definitely a lot of speculation when it comes to EOS. But at the same time, I definitely think Dan Larimer, he has a lot of experience in developing in this cryptocurrency space. He was a founder of Steemit and BitShares. So that does have a lot more confidence, the fact that he's been working on blockchain projects like this in the past. So there is a high chance. I do believe that there is a high chance that this project will deliver on what they do promise. But that being said, of course, right now I do think the price has shot up a little bit too much for my taste. So I'm not going to exactly jump in at this current point. I feel like there's a lot of hype, especially related to the airdrop. And personally, I'm not too interested in the airdrop for EOS DAC, but I'm more interested in the EOS platform itself. I feel like the platform itself has a huge amount of potential. And right now, the premium that I'm paying for it is going to be a little bit too much. So I'm going to wait until after the airdrop, then I'm going to see a nice point of entry for me. I do believe that the project can deliver and I'm excited for the product launch in June. What do you guys think of EOS? I mean, EOS has a lot of people who love it and a lot of people who hate it. What do you guys think? Where are you on the line? Do you think that they can deliver on the product that they promised? Or do you think that all the features that they promised might be delayed a little bit because they might not really meet those exact standards at the time of launch? Guys, thank you so much for watching this episode. I'm going to do more updates for different projects like this and more nutshell videos to cover new projects as well. So if you're interested in that, check out the subscribe button and click the notification bell to be notified of new videos when they get launched. Thank you so much for watching. See you next time.