eos ethereum

Ethereum vs EOS – The Battle of dApps Supremacy in 2018

EOS (EOS), the cryptocurrency that is ranked 5th when it comes to its market capitalization of over $12 billion, and it currently trades at around $13 USD per EOS token. During the February cryptocurrency market crash, this cryptocurrency demonstrated that it was able to maintain its stability seeing as most other altcoins experienced a dramatic drop in price.

Since the end of October, EOS experienced an incredible rise of nearly 2000%, climbing rank after rank, and slowly gaining up on Ethereum. On the other hand, Ethereum(ETH) declined with 25% over the past month. As you all know, Ethereum is the second largest coin, with a market cap of $60 billion dollars, currently trading at $600 USD.

Sure, there is a noticeable difference in both market cap and price, but many crypto experts say there are signs that hint that EOS has the chance of surpassing Ethereum. In our article, we will try to figure out if this technology could really overthrow the number two coin in the crypto world in the long run.

What is EOS (EOS)?

EOS is a blockchain platform that was created to provide a stable environment in which decentralized applications can be developed. In certain functional ways, you could say that EOS is somehow similar to Ethereum.

eosio 1024x225 - Ethereum vs EOS - The Battle of dApps Supremacy in 2018

EOS is advertised as the fundamental solution to the various issues of the blockchain infrastructure, such as scalability. It integrates a delegated proof-of stake protocol that basically works like a system of dedicated delegates, which are in charge of verifying transactions.

While there are already several blockchain-based networks that also facilitate decentralized applications, EOS emphasizes critical issues that plague blockchain and tries to resolve the problem of speed, scalability, and flexibility that often hit performance bottlenecks on these platforms.

eos 1024x247 - Ethereum vs EOS - The Battle of dApps Supremacy in 2018

They claim their protocol is able to process a higher transactional volume throughput producing rates ranging as high as 100,000 transactions per second. The efficacy is further enhanced by separating the numerous modules used in the operational process of dApps, such as the authentication process being implemented separately from the execution process.

What’s more, it also claims it is capable of solving the problem of transactional fees which has become a problem in crypto trading ever since Bitcoin’s price surged. Actually, the coin proposes that transactions shouldn’t be charged at all by implementing horizontal scalability.

block - Ethereum vs EOS - The Battle of dApps Supremacy in 2018

EOS runs on its own blockchain called Block.one, which is a decentralized platform that enables developers to test and create multiple decentralized apps.  Block.one’s CTO, Dan Larimer, has also created two other relevant blockchain projects: BitShares and Steem.

He developed completely different blockchain architectures for these two projects; he established the first stable coin and implemented DPoS or the first time; he developed the first dApp to be generally adopted.

What is Ethereum?

Ethereum is a blockchain-based distributed computing platform and operating system that supports smart contract (scripting) development.

ethereum 1024x216 - Ethereum vs EOS - The Battle of dApps Supremacy in 2018

Ethereum’s token, “Ether,” function similarly to Bitcoin. You can purchase and sell it, with the transactions being confirmed over the blockchain. Ether can also be transferred between accounts to pay contributor mining nodes for the computations made.

Ethereum uses a decentralized Turing-complete virtual machine, the Ethereum Virtual Machine (EVM), to perform scripts using a worldwide network of public nodes. Its internal pricing mechanism named “Gas” is used to moderate spam and distribute funds on the network.

Ethereum implements a proof of work (PoW) consensus model and has the advantage of being the first powerhouse in the smart contract and decentralized app (dApp) scene. Recently, the platform has been criticized for its high transaction fees in bearish market conditions, lack of scalability in low transaction (approximately 15 per second), latency in transaction completion (6 minutes to confirm a transaction), and the low percentage of network transactions that derive from applications.

Can EOS (EOS) Really Dethrone Ethereum (ETH)?

There have been many speculations in the crypto space regarding the possibility of EOS outclassing Etereum. It is known that Ethereum is currently the biggest player in the crypto space when it comes to the dApp platform development.

Ethereum plans on becoming more scalable by implementing plasma, sharding and switching to a proof of stake protocol.  But if Ethereum cannot accomplish these objectives, it is very possible that EOS will become the leading smart contract platform for the following reasons:

Scalability: EOS finalizes transactions in one second and has a throughput of up to 6,000 transactions per second. However, many time the Ethereum network has become jammed as it maxed out its transactions per second limit.

Zero Fees: Ethereum converts ether to pay various network fees on every transaction, and transactions are paid directly by the user. Fees in the EOS network are paid through inflation, where 1% of the yearly inflation is distributed to the block creators. This means that token owners are paying fees via increased supply instead of the end user.

Token Model: because the Ether token is used to pay network fees, it is subjected to velocity, which means the token value will not rise linearly with the network adoption.

With EOS, tokens can also be used to access network resources. A user that has 1% of token supply is allowed to have 1% of network ram, compute, bandwidth and storage. Users are not required to pay fees to transact. Instead, they must own or rent EOS tokens.

Bitfinex Exchange

Bitfinex, a leading exchange, announced that it will base a decentralized exchange on EOS’s Block.one blockchain platform. The new exchange will be called EOSfinex and will not only permit scalability of EOS as a dApp platform but also solve the issue of high transaction fees that are usually charged on exchanges.

Obviously, if the Bitfinex project becomes successful and more innovation on the EOS platform is realized, EOS (EOS) will become a rival to the biggest coins in the crypto space.

Conclusion

EOS still has a long way to go, but if Ethereum fails to improve its issues in time, EOS will most likely become the platform of choice which developers will use in creating consumer-grade applications. In the meantime, all that cryptocurrency enthusiasts can do is wait and see, as such takeover will not happen overnight.

Over the recent facts, as EOS mainnet fails to meet expectations – Ethereum seems it will keep the lead for at least a few months, until EOS will prove that they will have a functional product. If they will fail to prove that, EOS will probably stay behind Ethereum.

A lot of people are bullish on EOS right now, but its still a billion dollar project which have issues at this moment. Indeed, Ethereum had their issue too in past. Let’s not forget about the CryptoKitties hype which caused a network congestion in the ETH network.

Moreover, we need to take into consideration the project that will use EOS or Ethereum blockchain. If solid projects will use the EOS blockchain instead of the Ethereum one, it will probably have an impact over the price.

Do your own research on this battle for the dApps supremacy and see which one have the best potential but also – the one that its working the hardest on the development part and its more likely to succeed on the long term. Remember, there are a lot of projects that sounds good on paper, but aren’t working.

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