IOST - the cryptocurrency that throws the Ethereum gauntlet

It is less than a year old, but has more than $ 0,5 billion in capitalization and great ambitions. The IOST token, operating as part of the IOS network, wants to take over a large part of the cryptocurrency market, competing with such giants as Ethereum and EOS. And a good chance.

We continue the Forex Club portal series, in which we describe the most interesting and popular cryptocurrencies. Today it is time for IOST, a project with great ambitions and broad horizons, which is relatively young and does not lack youthful vigor.

IOST stands for Internet of Services. The project is obviously open source based on the blockchain technology. Its creators have set themselves the goal of being number one in terms of scalability and providing real-time settlements in virtually unlimited numbers. The system can create and attach applications to it, but they do not affect its speed. How do they want to achieve it? By using a consensus algorithm unknown from other blochchains Proof of Believability and Efficient Distributed Sharding.

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Who IOST competes with

The high bar makes IOST want to compete with the biggest players in the industry. The target is, among others Ethereum (ETH) and EOS. The chances are good, because there are plenty of good ideas and facilities. One of the biggest incentives for developing and improving the algorithm is the ability to program in Javascript, which is undoubtedly the most common programming language. Thanks to this, the first version of the network started operating on February 25.02.2019, 20. Over XNUMX programmers from Berlin, Beijing, San Francisco and New York worked on it, supervised by a developer from Singapore Jimmy Zhong.

ICO only for insiders

As in any new project in the cryptocurrency industry, money for development was collected during the ICO. The first tranche of utility tokens was worth USD 31 million. Only selected financial institutions have been invited to buy. One day was enough to sell all tokens, which were mainly purchased by companies from Singapore and China.

IOST with the highest scalability in blockchain

What the new project has delighted investors, since subsequent tokens are formed like mushrooms after rain and virtually each of them is a smaller or larger copy of the principle of operation Bitcoin? In this case, however, it is different. As we have already mentioned, Blockchain IOST is based on the Proof of Believability consensus algorithm. It is somewhat similar to that used in some Proof of Stake tokens, but there are significant differences. First of all, centralization problems were avoided, even in the case of nodes that have the majority of tokens on the market. Transactions are confirmed by Validators, which we divide into ordinary and credible. Each transaction is confirmed by credible nodes and then by ordinary nodes. This is to obtain maximum credibility. Shifts between groups are possible, because credibility is gained not only due to the number of tokens owned, but also through the contribution to the system development and the opinions of other users. All this together with appropriate technical solutions allows for scalability of 8 thousand. transactions per second. This is the current record in the entire blochchain network.

This was also achieved thanks to the Hyper Universe Distributed System, which allows anonymous communication between nodes in real time. The difference between Bitcoin and IOST lies in the resignation from storing part of the data, which speeds up the system's operation.

Course and IOST quotations

The IOST token reached the highest price on 19.12.2017/5,69/2,779, when you had to pay USD 14.01.2020 for it. Currently, there are 522 billion units on the market, which as at 0,18 are worth USD 4 million. On this day, the IOST token is valued at USD XNUMX, and the daily turnover reaches almost USD XNUMX million.