Part 1 of 2
Written by Malik Corbett
One of the most powerful characteristics of BTC is that it serves as a store-of-value. Hence, bitcoin has been referred to as digital gold. If bitcoin is digital gold then EOS is the equivalent of digital steel.
In the physical world, steel is an element that is used as a major component for infrastructure, buildings, ships, aeroplane, automobiles and other important technologies in society. In the same way EOS is a token that enables developers to build on top of general purpose blockchains. In other words, if you want to build on top of a public computing infrastructure then the EOS token will provide you access to computational power from the EOS main-net.
This is important because we are currently at the beginning of a new technological revolution and blockchain technology is at the heart of it. We are in the early stages but cryptonetworks and blockchain technology will revolutionize the internet as we know it today, replacing fundamental pieces of internet infrastructure such as authenticated communication systems, API gateways, and even cloud computing. Smart Contract enabled blockchains are ushering in the age of the decentralized web (DWeb or Web3.0).
Smart Contract enabled cryptonetworks will one day replace large swathes of centralized internet infrastructure. Executing code in a smart contract is very similar to serverless computing environments like AWS Lambda or Google Cloud Functions. Serverless environments completely abstract away the concept of hardware from the developer. The developer only needs to make sure that code will run reliably when triggered, but doesn’t need to know where it will run or exactly how many servers are needed.
Scalability is handled by the serverless platform itself, rather than explicitly managed by the developer. In the future, centralized services like AWS or Google Cloud will be forced to compete directly with blockchain based cloud computing platforms like EOSIO.
Unlike many cryptocurrencies the EOS token has actual utility and value which is highlighted in the fact that each EOS token represents the right to access a portion of the network’s resources which includes CPU (processing power) and NET (network bandwidth). The token is also used to purchase a third critical resource on the EOSIO network: RAM, which is used to store data in the blockchain. In other words, the EOS token is an important computational commodity for developers who desire to gain access to a public computational resource to build web applications. In the same way that construction workers use steel to build skyscrapers.