Is EOS better than Ethereum? Which blockchain platform offers more innovations?
Well, if you thought that Alien vs. Predator is the greatest battle of our century, get ready for the duel between EOS and Ethereum.
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If you’re feeling confused trying to work out ‘EOS vs. Ethereum — Is EOS better than Ethereum?’, keep reading. We’ve put together a complete guide so you can choose which one is better.
What Is Ethereum?
Is EOS better than Ethereum? Before we start exploring the pros and cons of both EOS and Ethereum, we should explain what these cryptos aim to achieve. As we know, Ethereum is the second most popular and traded digital asset.
Ethereum is an open-source blockchain-based platform, created by Vitalik Buterin, that facilitates the use of smart contracts and decentralised apps (dApps). As a matter of fact, Ethereum is considered the king of smart contracts.
On top of that, Ethereum supports a wide number of tokens, such as ERC-20, as well as numerous crypto games. Ethereum is not about empty talk, but real effectiveness!
No surprise Ethereum’s Ether is one of the most promising coins to trade. Unlike Bitcoin, Ethereum is uncapped, with more than 113,448,141 Ether in circulation.
Ethereum keeps improving and it’s believed that Ethereum 2.0, the second iteration of Ethereum will have a huge impact on the investment world, with a focus on energy efficiency and staking instead of mining.
What Is EOS?
Given Ethereum’s capabilities, it’s hard to imagine a platform that can outperform it. So, can EOS be better than Ethereum?
EOS is also a decentralised platform that enables the use of smart contracts and dApps, which makes it one of the main competitors of Ethereum. This blockchain platform was released on 31 January 2018 and in little more than a couple of years, it has earned the 13th spot on CoinMarketCap at the time of writing.
It is perhaps the most likely Ethereum killer and at first glance appears to be trying to do everything better than Ethereum. In reality, though, it has far more to offer than just replace Ethereum!
EOS may revolutionise how users interact with blockchain technology. How? Simply keep on reading!
What Is EOS Trying To Achieve?
How can EOS become a better platform and investment than Ethereum? The truth is that Daniel Larimer, the CTO behind EOS, claims that no blockchain platform can deliver the performance that regular people want. He argues that regular people don’t care that much about decentralisation, they care about performance.
With EOS, Larimer wants to create a platform for dApps that will work in the way people want them to. Which is why their primary rival is Ethereum! EOS is trying to make it easier to create dApps in comparison to Ethereum.
Supposedly, EOS requires less coding as it provides more base features than Ethereum and is easier to learn how to use and navigate. This is crucial because most people do not have the technical knowledge to use Ethereum.
EOS also provides database management and account management to improve user experience.
Larimer claims that EOS will one day potentially handle millions of transactions per second (tps). Today though, they claim they will be able to handle 1,000 to 8,000 tps. It is necessary to mention that until EOS reaches peak performance, we will not know if this is true or possible.
How Does EOS Work?
Can EOS achieve its goals? Can it become better than Ethereum? Let’s see how EOS works exactly!
The most essential thing to know about EOS is that EOS is the blockchain and the coin, and the EOS.IO is essentially the operating system that works on top of the blockchain.
EOS.IO has been compared to Google’s Play Store and Apple’s App Store in that it is easy to set up and use applications. This system makes using the EOS blockchain easier, which is crucial to attract more and more people to invest in EOS.
The EOS coin works on the EOS blockchain and uses a delegated proof of stake algorithm. It is open-source and anyone can use it to create high-performance smart contracts. In other words, EOS is designed to be more functional to businesses and users to create blockchain-based applications in a way that is much more user-friendly than Ethereum.
That’s right! One of the main ideas behind EOS is to create blockchain apps that work like web-based applications. Note that so far, blockchain apps have not managed to pull off the same performance and they believe this will stop mass adoption.
Furthermore, EOS has a decentralised governance with a constitution. This is one of the primary features the founders believe is vital to create a fair system. They claim that has led EOS to be more decentralised than Bitcoin and Ethereum as are more places where EOS coins are created.
Supposedly Bitcoin is controlled by four mining pools and Ethereum by two. This means that almost all the power is controlled by these groups. EOS, on the other hand, has 21 stakeholders who are block-creators, not miners.
This divides up the power significantly and should lead to a more decentralised structure of governance. This is also significant because if these mining pools are taken down, it can have a negative impact on the cryptocurrency and grind transaction validation to a halt.
Last but not least, according to Larimer, EOS has a better user experience; even simple but crucial things such as password recovery are more secure.
The Team Behind EOS
When it comes to cryptocurrencies, such as EOS and Ethereum, we should note that their popularity is also influenced by sentiment. In fact, the team behind a platform may play a crucial role.
Daniel Larimer, the creator of EOS, for instance, is a popular figure in the crypto world. He is also the co-creator of Steemit and Bitshares.
Note that Steemit is a social media and blogging platform that rewards users for publishing and curating content in cryptocurrency. Larimer is very active on Steemit, posting about EOS.
Bitshares, on the other hand, is a decentralised platform for trading cryptocurrencies using blockchain technology.
Larimer has taken his experience from both projects into EOS. Now Daniel Larimer is the CTO at Block.One, which is the organisation that owns EOS. He believes that decentralised apps cannot compete with centralised apps until they can perform better than them. Larimer also doesn’t believe in violent means to enforce the governance of decentralised platforms.
Here we should also mention Brendan Blumer. Blumer is the CEO of Block.One. He is a serial entrepreneur and investor. Blumer has a wealth of experience in the tech business, being active since the age of 15 where he started off selling virtual gaming assets.
Given their influence in the crypto trading world, it’s no surprise that the team behind EOS can play a crucial role in the EOS vs. Ethereum battle.
How Has EOS Performed?
Great capabilities, an innovative team... Can EOS outperform Ethereum? Let’s look at EOS prices then!
At the time of writing, one EOS token priced at $4.03, has a total market cap of $3.84B, and a circulating supply of 937,809,754 EOS.
Interestingly, EOS was met with a lot of excitement when it was released and shot up in value almost instantly.
After a price correction, it shot up to highs of $18 per coin and a market capitalisation of $10 billion in January 2018. Then, it reached an all-time high of $21 per coin and a total market capitalisation of $17 billion in April 2018.
Since then, the excitement around EOS has matured and prices have ranged between lows of $1.81 per coin and highs of $5.93.
Let’s not forget that EOS’s ICO used Ethereum to host it and lasted a whole year. Some found this strange; however, Larimer has said that both Ethereum and Bitcoin were longer. In total, they managed to raise approximately $4 billion.
As EOS develops and new features are added, the price will likely increase or decrease if they are not received well. Now EOS is one of the most popular coins to invest in; a coin that you should be watching closely.
Want to learn more about other cryptocurrencies and how to trade them? Then read our Top cryptocurrencies to trade!
Have You Considered Buying EOS?
How Has Ethereum Performed?
Ethereum has also had an intriguing journey. Two years after Vitalik Buterin had proposed Ethereum, the protocol went live in July 2015.
In 2016, however, the system was hacked; $60 million was stolen via a dApp designed to be a venture capital fund, The DAO. As a result, Ethereum Classic (ETC) was created and the Ethereum blockchain split.
Another major event for Ethereum was the blockchain-based game CryptoKitties, launched in 2017. Believe it or not, users went crazy about Ethereum’s virtual cats and the blockchain got clogged.
That’s right! There were many people willing to pay a fortune to get a digital cat. The most expensive purchase is of the popular cat Dragon, worth 600 ETH or about $170,000.
Despite its ups and downs, Ethereum has managed to stay one of the strongest assets of 2020, with a market cap of $206.43B. As of March 2021, one ETH is $1793.95, as per CoinMarketCap.
Some experts believe that Ethereum might reach its potential in the next few years. So, if you are willing to invest in Ethereum instead of EOS, simply keep watching ETH prices closely!
Have You Considered Buying Ethereum?
Issues With EOS
Before you conclude that EOS is better than Ethereum, we should mention that EOS has numerous issues. That’s right! Despite a wealth of good news, EOS is not without issues.
To provide an example, Weiss Crypto Ratings claims that EOS has problems with centralisation. In 2019, Weiss lowered EOS’s rating after they concluded that EOS was not willing to do enough to increase decentralisation.
However, this may partly be due to EOS being very young and, therefore, before it can be fully adopted will have centralisation problems.
That said, the primary issue EOS has suffered from is bugs. There have been plenty of issues since the get-go and critics wonder if the EOS team is appropriately testing updates before putting them on the main net.
In one of the more recent bugs, block production was forced to stop, and the EOS team was forced to have a conference call with block producers, which led them to roll back the code to an earlier update.
However, it should be mentioned that Bitcoin and Ethereum, as well as many other cryptocurrencies, had issues when they started.
Lastly, we should mention that others have speculated that EOS may face regulatory problems in the USA for how they ran their ICO, claiming that they went too far, and it may become a problem for them later. Note that US citizens were not allowed to take part in the ICO (as well as Chinese).
Let’s not forget that crypto regulations vary significantly across the globe. Here you can learn more about the most crypto-friendly cities across the globe.
Issues With Ethereum
As stated above, the crypto world has numerous tech and regulatory challenges to deal with.
Just like any other crypto, for example, Ethereum has some serious scalability issues. Note that according to experts, one of the main reasons for such scalability problems is the fact that “each node has to process each transaction.”
The increasing number of users adds fuel to the fire and leads to different tech problems and slow processing times.
While the team behind Ethereum believes that Ethereum 2.0 will help solve further problems with the system’s capacity, only time will tell.
Another problem is Ethereum’s high fees. Let’s not forget that users have to pay gas, a fee in Ether, to run smart contracts. These fees go to the miners or the owners of the nodes. Given that cryptos aim to make transactions cheaper and faster, high costs may push users and enthusiasts away.
Moreover, user experience may also suffer, so it’s no surprise that many users turn to alternatives of Ethereum, such as EOS.
The All-Important Question: Is EOS Better Than Ethereum?
So, is EOS better than Ethereum? The short answer: it is still far too early to say (surprise, surprise!).
As both Larimer and Vitalik aim to decentralise organisations and currencies and create a more transparent financial world, many people compare EOS with Ethereum.
However, the comparison is not always clear cut. Both are still experimental and will change over time. The team behind EOS certainly believes it is better, but a proper comparison between the two may not really be feasible until they are running at full capacity.
EOS is a lot younger than Ethereum and some believe it can work around Ethereum’s issues.
But Ethereum is still changing as well. Vitalik Buterin has said that Ethereum will be a lot faster after sharding and Plasma. Buterin believes that Ethereum may be able to reach tens of thousands of tps.
It is also important to recognise that one of the primary differences between EOS and Ethereum is that they have competing ideologies. With Ethereum, users of smart contracts must pay gas for using them. With EOS, developers are the ones who must pay gas.
Ethereum may have problems with backward compatibility when scaling; EOS may not have such problems, yet.
Another major difference between EOS and Ethereum is the programming languages they use. Ethereum uses its own programming language, Solidity, while EOS uses C++. As C++ is already widely accepted, this may mean that EOS will be easier to adopt than Ethereum.
That said, C++ has been fading from popularity for a while now; forcing EOS to add more programming languages in the future, further speeding up adoption.
Perhaps one of the biggest differences between EOS and Ethereum is that with EOS, users can update smart contracts. On Ethereum smart contracts are immutable, which means once active, they cannot be stopped. It should be mentioned, though, that updating smart contracts could be a security risk.
It is also logical to assume that as blockchain technology keeps evolving, both EOS and Ethereum will have more competitors to deal with. Take NEO, often called China’s Ethereum, for example! Which crypto will win? Only time will tell!
If you remember anything from our article Is EOS Better than Ethereum?, make it these key points:
- The EOS vs. Ethereum battle is one of the most interesting areas in the crypto world.
- Using EOS.IO, EOS is much more user-friendly than most cryptocurrencies. This is a big issue because so far most dApp platforms are too complicated for ordinary people to use.
- Daniel Larimer is behind EOS. Larimer is very well-known in the cryptocurrency world and previously worked on Bitshares and Steemit.
- The primary difference between EOS and Ethereum is that developers pay for smart contracts. In Ethereum, users must pay gas to use smart contracts.
- We’re still yet to see if EOS is a real Ethereum killer. It is still far too early to predict how well EOS will perform.
Which crypto is better? Which one will conquer the world? Only time will tell.
Whether you’re an experienced crypto trader or taking your first steps into the sector, EOS and Ethereum are potentially strong contenders for your investment portfolio. We hope this comparison guide has helped demystify these major cryptos for you.
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EOS VS. Ethereum — Infographic
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