EOS is a blockchain-based, decentralized system that enables the development, hosting, and execution of commercial-scale decentralized applications (dApps) on its platform. Founded in 2017, EOS is built on the delegated proof-of-stake (DPoS) consensus mechanism.
The EOS ecosystem consists of two key elements: EOS.IO and EOS tokens.
EOS.IO can be viewed as the operating system of a computer as it emulates a real computer. EOS.IO uses hardware (CPU + GPU) for processing, memory (local/ RAM/ HDD) for storage and software to manage and control the blockchain network. EOS.IO uses blockchain architecture that is built to enable the scaling of decentralized applications (dApps).
The EOS token is utilized to govern the EOS blockchain. By staking their tokens, holders can elect block producers, who process transactions and make governance decisions. Block producers in turn can earn the EOS token for producing blocks on the blockchain.
The EOS token is also used to manage network resources on the blockchain. Namely, RAM, CPU, and NET. To run dApps for example, a developer is required to hold EOS tokens. An EOS token holder can also opt to rent his bandwidth to other participants on the network who may need it.