In 2017, Block.one, led by And Larimer and Brendan Blumerlaunched the Entrepreneur Operating System (EOS) protocol, one of the earliest “Ethereum Killers”, aiming to support decentralized financial applications on an enterprise scale for a global audience.
It offers speed, scalability and comparative cheapness that will go further Ethereum ETH/USD for most of the work. But EOS has had somewhat mixed fortunes going forward, and things haven’t gone according to plan.
The EOS network is managed by block producers (BPs) who invest shares in the infrastructure and community instead of staking EOS tokens. This approach means that BP tends to be a large consortium, and it is difficult to increase nodes and scale.
In 2019, the US Securities and Exchange Commission fined Block.one $24 million for failing to register an initial coin offering.
“Some US investors participated in Block.one’s ICO,” he said Stephanie Avakianco-director of the SEC’s Division of Enforcement.
“Companies that offer or sell securities to US investors must comply with securities laws, regardless of the industry in which they operate or the label they put on the investment products they offer.”
EOS forks Telos and Wax continue to grow but development on EOS dropped by 90% in 2020. According to DappRadar’s Dapp Industry Report 2020EOS drops to less than 4,000 active wallets.
In August of this year, EOS Network’s troubled history took a more hopeful turn. After a record of delays, unfulfilled promises and falling token prices, EOS Block Producers have severed ties with Block.one and opted to pursue a new protocol to integrate more powerful forks and block producers.
UX Network UTX/USD, Telos TLOS/USD and Worldwide Asset eXchange WAXP/USD join forces to create the Antelope Protocol, the aspirational successor to the EOS Network, poised to succeed where Block.one has failed in its early promises.
“I think there’s really a rebellion against Block.one. It wouldn’t have happened without the tacit support of the bigger block producers, especially in China. Yves La Rose is kind of leading the charge. Not to mention in front of the camera,” he said. Daryn Soardsco-founder and CEO of UX Network.
Benzinga was interviewed Guillaume Babin-TremblayUX Network’s chief technology officer, and Soards to see where Antelope is now and where it’s headed in this cold bear market.
This story is part of Benzinga The future of Crypto peak related content. Future of Crypto takes place on December 7th in New York City at Pier Sixty.
Some of the best minds and most important projects in Web3 will be in attendance, including Rarible, Cosmos, Yuga Labs, Solana, Laguna Labs and Algorand. Keynote speakers included Jordan Belfort, Kevin O’Leary and Anthony Scaramucci.
BZ: What does it mean for the EOS Community to separate from Block.one? How was the Antelope Coalition formed?
Babin-Tremblay: “At one point, the code was developed, managed and maintained exclusively by Block.one. They called the Antelope protocol release and activation ‘EOS Independence Day.’ This is the day when the community took back the codebase from Block.one’s hands. So, this is a new beginning. The code is already used by several chains – including Wax, Telos, and UX Network. We came together with representatives from each chain to see what can collaborate on a common codebase that unites us. So we created the Antelope Coalition, which has four members – EOS, Telos, Wax and UX Network. We gather resources and provide funding for whatever priorities these four chains think are the most important. ”
BZ: How do you donate to Antelope?
Babin-Tremblay: “The largest grant was awarded to Origin. We took half of the budget to build and release Inter-Blockchain Communication (IBC) which allows all chains to communicate in a trustless way and scale horizontally by generating side chains. This is one part of us. mandate.
The other side is what is called ‘instant finality.’ It addresses the time it takes for the transaction to settle when you make the transfer. There is a window of time during which the transaction can be cancelled. You may lose funds if you purchase and ship the item without waiting for confirmation. We wrote an update to the Antelope consensus model that will bring the final from 3 minutes to just 6 seconds.
BZ: What does UX Network provide that no other Layer 1 does?
Swords: “The most important thing that no one else has is a rational resource model. For the first time in crypto, as far as I know, we can guarantee what the transaction costs are for a long time, and we can price it in US dollars.
Ethereum is the best example of the problem – you don’t know how much your transaction will cost. You’re paying a gas fee that will fluctuate based on the state of the chain, how congested and how many people are actually using it at that time. And on top of that, you have the price of Ethereum, which will also fluctuate, based on market sentiment. Maybe today, I can process 1,000 transactions for like $10. Tomorrow, I can only process one transaction for $10,000. This is an extreme example, but it has happened in the history of Ethereum. And it creates a terrible user experience and discourages anyone who is serious about building the chain. Because the first question people ask building applications on these blockchains is, ‘how much will it cost me?’ How much does it take to make a transfer? How can we predict what these resources will cost? So we are the first to be able to provide that consistency. The price will be the price for the next five years.
We have a more flexible, rational, and aligned model for costs. No one has it Ethereum. They didn’t discuss the requirements to run an Ethereum node because no one knows. How many transactions can you process? What hardware can I use?”
BZ: How to measure the throughput of the UX Network?
Swords: “We built Yes Mechanics, a benchmarking application that allows you to test the performance of block producers in terms of real resource availability and the number of possible transactions. This is one of the main reasons why Antelope is so fast. We have been measuring this information and tweaking the software for many years. years to achieve better performance.
There are protocols that claim speeds like 60,000 transactions per second. But they use multi-threading. The minute we start using multi-threading, our real numbers will be in the millions of transactions per second.
The most important thing is that we can align the price of resources with the cost of these resources for block producers and network node operators. There is no way in hell anyone can run anything enterprise level on Ethereum. It’s a playground for rich kids.”
BZ: How do you optimize speed and usability for devs on your network?
Swords: “We build a resource model that focuses on the utilization of resources. So it always responds to the use of resources. But because it is rational, it can be used and anyone can understand it.
With all these Layer 1 platforms, it comes down to resource cost rationality. So we take a rational internal allocation approach. So, when you get external capital into this system, the value of that token capital will reflect the expansion of the economy. But without compromising user experience or resource costs, it drives the value of the entire system. We don’t try to trap values in the chain, which is a mistake that every other protocol makes.
With the standard Fat Protocol thesis, all values are in the lower chain. But the world is not like that. If you are a Layer 1 network, you are not a price maker; you price taker. So you have to make it for the user.”
To be judged fairly, the EOS Network must be considered in the context of its time: the ICO boom that led to over-optimistic crowdfunding, followed by the almost universal suddenness and failure of many projects. We should also remember that EOS was one of the previous attempts to accomplish many of the same goals that the larger “alternative” DeFi networks are doing today. The network has benefited from learning from EOS’s mistakes.
The big block producers that made it difficult to scale early EOS may have a solution to save the original destination of the network with the new protocol and the Antelope Coalition.
UX Network was created by one of BP to provide the scalability, speed and price control that EOS promises. By joining two successful forks, Telos and Wax, he created a hub model that he says is the most similar to Cosmos because it consists of a special chain.
BP has also learned from its previous mistakes, and its focus on efficient use of resources has given blockchains like UX Network some interesting qualities that can compete with the likes of Landslide AVAX/USD, Algorand ALGO/USD and Layer 2s like Polygon MATIC/USD.
It remains to be seen whether the EOS association will help or hinder the effort, but those of us who remember the initial enthusiasm around EOS will be watching to see if all the original promises are fulfilled. He may have been ahead in 2017 – perhaps history has caught up with him in 2022.