IntroductionPeople seem to have lots of questions regarding EOT. Some of the answers are of my personal opinion and I am not a team member of Embedded Downloads. I have obtained the answers through Slack and communication with the official team and community members.
I have outlined questions about mining, the Waves Platform and have shown the relationship between the Public Blockchain and the premined coins. I have briefly described the difference between EOT cryptocurrency and the inherent Blockchain and discussed multiple Blockchains and the dynamics of price influence.
This is only a brief outline and it was my goal to collate these answers in one convenient place for people to review, as it was difficult to retrospectively read through Slack to find these answers. There were also a lot of misunderstandings.
Mining ClarificationEOT CoinName: EOT Coin
Symbol: EOT
Coin Type: POW (Scrypt)
Time:90 seconds
Block size: 1MB
Reward halving: every 500,000 blocks
Block reward: 100
Total Coins: 200,000,000
A total of 50% is premined equalling 100,000,000 EOT tokens and is available on the Waves Platform as a waves-asset.
EOT TokenName: Encryption Of Things Token
Symbol: EOT
Issuer:3PAY9wimGC8k4Eq2hbrH5DjCs82MND8MSbk
Asset ID: GdnNbe6E3txF63gv3rxhpfxytTJtG7ZYyHAvWWrrEbK5
Decimals: 8
Total Supply: 100,000,000
http://dev.pywaves.org/assets/GdnNbe6E3txF63gv3rxhpfxytTJtG7ZYyHAvWWrrE bK5
Coin and Token DiscussionTo begin with lets review the EOT Blockchain Explorer rich-list (
https://eotcoin.info/richlist). This list shows a wealth distribution roughly to date (19 Dec 2017) of 13.6897 million mined EOT coins and a coin supply of 113.6897 million. 100 million of these coins are in reserve for the 100 million tokens available on Waves, leaving the 13.6897 million coins that are mined by miners as shown on Coinmarketcap as circulating supply. The remaining coins have not been mined yet and are not in circulation and when calculated is 86.3103 million coins (200,000,000-13,689,700=86,310,300). Just keep in mind block halving takes place at block 500,000 and currently we are at block 136,905.
The following four addresses have been confirmed to be Embedded Downloads and have been put aside for future projects/devices including a reserve of 100,000,000 EOT coins for the Waves platform.
EeJdxdvjEbq1kw7KkGovvLMnAs9h7nB7e9
EVEHaEUdD7hQ4uw9nyr5LteDLNkiigDCwT
ETZ7powGjKeCRySD5YWbPLuj52LphXAbfc
EL5Km7NNY2wdMfHAmp3BLon7B9tAykQe62
The first Exchange EOT was available on was the Waves Platform. It was not an ICO but a way to distribute EOT for future businesses/organisations and other speculating investors to purchase, and this is why there is a 100 million tokens. Airdrops were originally distributed in this platform as the team feels this was the easiest method to expose EOT to multiple currencies. As fiat currencies and major cryptocurrencies are easily established to pair with EOT, it seemed logical as a good starting point.
It’s important to understand assets on the Waves Platform. Basically any asset is a representation of a currency and is maintain on the Waves Blockchain. This is separate to the EOT Blockchain and does have a mathematical relationship as seen above. Waves offer five services crucial for EOT to be traded on this platform.
Token creation
Deletion of Token
Transfer of Token
Anonymous order books
Decentralised Token Exchange (used with currency pairs)
-as seen in the Bid and Ask network transactions
https://blog.wavesplatform.com/waves-whitepaper-164dd6ca6a23 So how is this distributed you might ask? A reserve of coins is held and equal to the token so we can trade with Waves. This allows 1:1 token/coin swap either way. Ultimately the EOT coin on the Blockchain is the primary functional chain and it’s the coin that will be used to validate and encrypt, not the token. However, every token on the Waves chain must be represented on the EOT coin Blockchain to allow for the 1:1 swap.
Not all of the wallets on the Waves Platform are in public distribution. The following Waves wallets are confirmed to be Embedded Downloads:
3PAY9wimGC8k4Eq2hbrH5DjCs82MND8MSbk
3PNWKGCuhhVG63E1YncLNBsCnpDFR3ULcL2
http://dev.pywaves.org/assets/GdnNbe6E3txF63gv3rxhpfxytTJtG7ZYyHAvWWrrEbK5Difference Between Blockchain Technology and Cryptocurrency for EOTThere is a difference between the Blockchain and cryptocurrency using the Blockchain.
The EOT cyprocurrency uses the Blockchain as a ledger of transactions distributed over a P2P network and is decentralised. A consensus is agreed where network participants all agree on the validity of transaction before it is recorded and is termed mining. Cryptography is used (Scrypt algorithm) and computer power is required to process these equations proving legitimacy. This is termed ‘proof of work’ and is available on the public chain.
When EOT is used for functional purposes it then is transferred to inherent private Blockchain where its function is no longer a cryptocurrency but instead has the purpose of using cryptography to secure data and to validate.
For an interesting read between private and public Blockchain’s please refer to
https://blog.ethereum.org/2015/08/07/on-public-and-private-blockchains/ Multiple BlockchainsThere are multiple Blockchains using EOT for security. It is important to state that no EOT will be burnt. Any EOT used with any product is reissued back to the ecosystem. The only loss of EOT is when a product is destroyed or a wallet is made unavailable for whatever reason. That EOT is then out of circulation.
The EOT Blockchain is obviously the primary chain, and an alternative chain would be on the Waves Platform enabling the existence of the token. As mentioned above they have a close mathematical relationship allowing the 1:1 swap to take place anytime. This allows the price for the coin and token to be the same.
Other chains mentioned are the inherent chains that allow the functionality of the products. For an example if using the messaging function with the Bitvault® the encryption and validation for this application would take place using the EOT coin. It would operate on an independent private chain for these actions. Another separate chain would exist if using a different application such as a phone call with the Bitvault®, using CryptoDoc or a Router that uses the EOT coin. These separate private Blockchains prevent compromise. This is added security making each application independent.
Once the user finishes using the application that private chain is no longer active and the spent EOT coin is then made available to Embedded Downloads to redistribute back to the public Blockchain. The redistribution is part of the process and is vital with its implications.
That private blockchain does not exist for anyone to review and it’s no longer available after the call, message or whatever it was used for. Only the recipients that know the private keys are privy to this chain.
It is important to understand that the EOT Blockchain (
https://eotcoin.info/) is a public ledger for the EOT coin and does not reflect the inherent Blockchains. EOT cryptocurrency is used initially and then at the end of the cycle will end up back on the public Blockchain. Intermediately the EOT coin doesn’t function as a cryptocurrency but uses the cryptography aspect to encrypt and validate data.
You will only know the address for the coins and when the coin was used but not what the coin is used for or who owns the address.
Trading Dynamics for EOTWithout getting into the entire dynamics of trading the answer is supply and demand.
You can limit the supply to prevent deflationary rates or make it scarce to add value. But what gives anything value is demand. Making demand for EOT is a product that requires EOT to be spent. Having products available like the Bitvault®, CryptoDoc, EOT camera’s and EOT Routers etc are examples of products to build a reason to use EOT, it does not build price.
Individual people will have to buy from the market but most expenditure for EOT would be from in-app purchases, for an example when playing a game you would upgrade something in the game, spending EOT. Maybe the xbox game manufacturer that is in current negotiations is considering this? You never know. Anyhow buying from the market increases price.
Targeting large agencies gives the opportunity for bulk orders and therefore more EOT to be spent. Even with preloaded devices, at some point these agencies would need to purchase from the market. How often they use the product would determine how quickly they would use EOT. An example would be an EOT Router or EOT camera being continually used. Most cities already stream data and use cameras continuously so once cities become IOT compliant they could consider this avenue and continual use would spend EOT quickly.
Those companies who bought in bulk would have to spend lots of money to purchase EOT on the open market. As large agencies are targeted it would be better to preload products and include it in the initial cost. This would provide them with price security and increase the chances of them buying into the product giving them market appeal. Agencies buying into a product with this method will enable future EOT price growth, as they need to buy in the future.
Another consideration would be having any product with unspent EOT, this would remove EOT from circulation for a period of time making it scarcer until it is used and returned to the ecosystem. The more products in use, the more EOT removed from the market therefore increasing price (scarcity).
Slowly building cliental with products and having real life solutions will prevent hype. Having hype will led to a quick price increase and is more often reflected with low quality. You often see a price spike following good news then a price retracement to previous support levels and then continuing to fall if it has no basis. Psychologically the assumption is with the price plummeting after the spike, there was no real cause to sustain a high price, thus hype has a negative connotation. If the project is more robust and people see stability and slow growth, then a slow and steady price increase is demonstrated.
EOT might be held in some products for 3-4 years but again this is limited. The answer is two-fold and depends on how often it us used and what product is in use as commented in above paragraphs.
At some point in the far future the premine will be exhausted (because of unavailable wallets or broken/unused products) and no option is left but to buy on the open market. As it is designed now, the recycled EOT to Embedded Downloads has extended this period. This in no means is detrimental but has a business model of sustainability and giving market appeal for buyers of products.
Some people may ask how investors with EOT might make a profit if the coins are recycled. Bitcoin is not recycled; in fact not many coins on the market are, yet people make a profit. It is in innovation that helps create this demand.
Exposure to people and having EOT listed on larger Exchanges will make EOT known to more people. This in itself is news and a price increase will be expected. Exchanges have been applied to but Embedded Downloads has no power to know if or when they will list EOT. Maybe they to are waiting for product distribution with a review of this innovative technology, we do not know.
News brings an increase in price and so does FOMO. Having a product behind this cryptocurrency is a rarity and especially with real life solutions. As we have seen with IOTA people do not want to miss out with this new technology and price will reflect this once the public become aware of EOT.
One last point, you can see that there has been a price decrease with EOT since its release. This is indeed true but expected with miners dumping and the market stabilising after release. This has been demonstrated in many other markets. It is known for people to cash in their free coins after airdrops but notably emotional trading after release is common.
This is especially true for EOT as news for the delay in shipping with the Bitvault® has created market jitters and emotion has set in. Just compare the dates and the price compared to the release for the gateway for Waves opening to trade EOT. There was a dramatic price decrease during this news as people reacted with emotion.
ConclusionEOT fills a market void with a multi billion industry using products and having real life solutions to encrypt data.
With the complexities surrounding trading it is impossible to determine the future price of EOT. It is important to realise the sustainability of EOT in its environment is crucial for the future.
EOT is only in its infancy and hasn’t shown any growth. It is the products that Embedded Downloads has concentrated on to help grow demand. As these products haven’t been released yet we are not expected to see price increases as seen by our peers. It is Embedded Downloads belief that creating this demand will bring growth as people realise how easy it is to practically protect privacy.
Once news is out about EOT’s products and more people become aware due to Exchange listings I would expect the exponential price increase to be dramatic compared to a slow and steady increase with product release. It is not the intention to have hype driving price but rather the adoption of technology.
It is firstly adoption by being innovative that is primary. This is the main goal, secondary is the price increase for EOT and this will no doubt appease speculators.
EOT is Open source and an EOT Toolkit will be available to assist with integrating EOT into IOT devices or apps early 2018.
