There are almost no other cryptocurrency with such intense rivalry as Ethereum and EOS. Arriving as the number one and number two respectively in decentralized application platforms (DApp) depending on the size of the market capitalization, the two cryptocurrencies polarize enthusiasts according to their preferences. Although the projects share a similar vision and approach, there are significant concessions between EOS and Ethereum. Currently, these revolve mainly around their different consensus algorithms, as well as some design differences. In particular, how these conceptions are extended while promoting decentralization.
Blockchain, in collaboration with its partner “Smart Contracts”, allows companies to develop a decentralized ecosystem that allows them to enter into agreements without the involvement of an external intermediary.
So, what exactly are smart contracts?
Smart Contract is a program that is stored in a Blockchain. They are coded to automatically control the transfer of assets between two (or more) parties when the predefined conditions are met. Smart contracts can facilitate the transfer and exchange of money or property in a transparent manner, while avoiding the services of an intermediary.
Speaking of the development of smart contracts, two platforms have become the most popular, one the oldest and most reliable, Ethereum, and another new and innovative one is EOS.
The Ethereum project became the first blockchain protocol to install a technology called “smart contract”, which allows strangers to participate in a contract in a trust-less environment. The technology is based on predefined conditions and, once satisfied, the smart contract can unlock the funds automatically, without the help of an intermediary. To enable blockchain application developers to implement smart contracts in Ethereum, the platform has launched its own programming language, called Solidity, allowing users to create their own decentralized application (DApp) by writing their own code contract in the Ethereum code.
Currently, users can be rest assured that DApps will work effectively without interference from third parties. The default cryptocurrency is Ether (ETH) and works very much like normal cryptocurrencies. It is available in most if not all trade around the world.
EOS is a blockchain operating system that provides databases, account permissions, programming, authentication and communication of Internet applications to developers. EOS works as a viable alternative to the Ethereum network and provide developers with all the tools they need to operate without worrying about advanced cryptography implementations or blockchain communication. As EOS is a newer project, they have a valuable opportunity to capitalize on recent technological advances in the field of cryptography. This advanced technology should allow them to handle a higher volume of transactions per second and much faster than Ethereum. It will also benefit from features that provide the platform with inherent flexibility, such as channel-to-channel communication.
Like Ethereum, EOS also has its own cryptocurrency platform, which bears the name of the platform itself: the EOS cryptocurrency.
ETHEREUM vs EOS
- Design Philosophy
The Ethereum network could almost be described as application-independent, that is, it is specifically designed as a neutral platform for all potential applications. Ethereum has no “features” and refuses to include “even very common high-level use cases as intrinsic parts of the protocol”. This logic reduces the swelling between applications, but it also requires many different applications to reuse the code. Efficiency improvements for application developers could be realized if the platform offered some more common features.
EOS recognizes that many different applications require the same types of functionality and seeks to provide these features, such as cryptocurrency implementations and application / blockchain communication tools, required for many applications. With this philosophy, EOS will include the introduction of generalized role-based authorizations, a web-based toolkit for interface development, self-describing interfaces, database schemas, and a schema for declarative authorizations
The Ethereum network performed 25 transactions per second in tests of up to 50 or 100 transactions per second. The network also plans to implement improvements via the Metropolis bifurcation with future updates also in progress. However, under actual application load, the current Ethereum network transaction limit is probably 10 transactions or less.
EOS has been able to perform more than 10,000 to 100,000 transactions per second in stress tests. The platform, based on Graphene technology, uses parallelization to enable scalability and allow millions of transactions to run together per second.
3. Transaction Fees
EOS has no transaction fees. Instead of paying fees, running a smart contract requires that you place tokens that you receive immediately after they are executed. Dapp developers choose whether they are the ones who stake tokens for their users or whether users should stake theirs. However, the EOS platforms do not charge any network development and transaction fees. Users will only need to purchase the EOS token in the initial phase.
The rates required in Ethereum fluctuate and miners have the ability to select transactions that depend on the size of the fee. To be able to execute smart contracts, you must use ETH (gas). The amount of gas you need to burn depends on network congestion and the complexity of your contract.
4. Governance and Consensus Protocols
The Ethereum blockchain uses proof-of-work (PoW) protocol that can only process an average of 15 transactions per second. This consensus method also prevents Ethereum from repairing broken distributed applications on the network, often forcing them to have a fork if they have to solve a problem.
For comparison, EOS will begin using a Delegated Proof-of-Stake (DPoS) that should eliminate the bottleneck encountered by Ethereum. DPoS protocols are also impressive because they allow developers to freeze the network when a damaged application is identified. When frozen, the developer can resolve the problematic application without adversely affecting other network accounts. In addition, EOS include a legally binding constitution establishing a common jurisdiction for dispute resolution, as well as self-funded community benefits applications that will be selected by an interest-weighted vote.
The EOS vs ETH debate divides opinions. I understand both sides of the argument, because while EOS has the potential to become the most successful blockchain in the world, Ethereum is already the second most popular cryptocurrency in the industry. EOS still has a long way to go and I’m not saying they will take control of Ethereum overnight. But if Ethereum fails to innovate, EOS is a platform that makes fundamental concessions that allow entrepreneurs and small business owners to innovate in a blockchain and create apps for consumer that we cannot yet imagine.
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