RE: Why EOS is destined to fail.
I am totally unaware of these problems because every time I tried to understand what EOS is in the first place, what it can do for an ordinary user like I could be, I did not find anything. Steemit has the advantage that its fundamental concept is very easy to understand: a social network that pays you. Point.
What is the fundamental concept of EOS? How does someone like me who does not understand more than the basics of this world benefit? And if I wanted to enter their platform, how do I do it? I did not find any instructions or anything, at least not in Spanish, which is my native language. English as you can see I speak little.
By the way, If you are interested, I leave a link to a platform that pays you with its cryptocurrency just to register and look at its content: https://watch.getalx.com/login?referralCode=RCLNL3
I only ask that if you register you do it with this link that so they pay me some cryptos too. And, of course, it will be convenient to invite your friends with your own link that you will generate once registered.
And another one that is a search engine like google that pays you just for searching:
https://www.presearch.org/signup?rid=539163
I'm a systems engineer by trade and deal with traditional servers to accomplish pretty much everything that an average user interacts with on a daily basis.
The idea behind EOS is a decentralized operating system where instead of a traditional server, hosting an app like banking, accounting, point of sale, file storage, etc. you could just pull up a website and do all this and have it stored on a blockchain. Pretty neat concept.
That said, EOS is still a long way off before this is possible. The technology can technically do this, but the chain isn't performing all that well, high fees to perform basic tasks, etc.
Overall, I'm impressed with EOS and for a first run at accomplishing this, I think it is great. That said, it is just a FIRST run at it, and I think there was a lot of fundamental issues with it and will not see mainstream. I do think future blockchains will take the things EOS has done right and learn from the things they didn't.
Ok, i understand. But my be EOS could solve in the future its problems, ¿or not?
Steemit in the beginning had problems too.
Somethings they can and will solve. Other things are part of its foundation and pretty much doom its future for mainstream appeal.
The big thing is having 10 wallets control the entire platforms wealth. You can't tie up 50% of the coins in circulation to 10 wallets. It's just too lopsided. You get no distrubution until you get past 90% of circulation supply.
Source: https://medium.com/fortuneinsider-com/eos-wealth-inequality-top-1-6-of-holders-own-90-of-supply-78d7bf785b6f
As you see by this 2570 wallets control 90% of circulation (That is about 900,000,000 EOS controlled by only a few entities).
Steemit had this problem and still does to a lesser extent. As time has gone on the whales have distributed more of the coins. So far the trend in EOS is more of the wealth has gone to the whales INSTEAD of being distributed. This is a huge problem as EOS just doesn't work when most of the big holders don't actively participate on the chain. So effectively it is running at 10% with no real outlet to improve. Also noone with a brain will want to invest in EOS as when you have only a few entities controlling so much wealth, if one of those dumps, it could crash EOS to damn near 0. It's a giant problem with no solution, but in the meantime I encourage people to spend time learning EOS and avoid investing because the price is extremely bloated imo.
We will see what they can do i 2 years. I agree that a huge danger is there when a handful of people hold so much of the wealth.
Essentially by having a token distribution like that you have tiny blockchain use. You want the money pouring in but when it does and you dont guard against horders there is no way get wider adoption which should be your goal. Those tokens just end up floating in the air.
If FUD, and i mean real FUD would happen, EOS could disapear in a week. STEEM is another thing all together in this case. We have strong believers, we have a 3 month power-down time and you have token distribution tied in into the system as a whole (although inneficient) that will eventually and slowly lead to more individuals holding Steem tokens.
@christitus. Good explanation! So clear and easy to understand! Thanks so much!
You ought to write more article like this, intro to crypto. Or the impact of cryptos on future world!