Is EOS Better Than Ethereum?
EOS was released on 31 January 2018 and in little more than a year, it has earned the 8th 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.
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What is EOS trying to achieve?
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 decentralised apps (dApps) that will work in the way people want them to.
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 as well.
How does EOS work?
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.
It is designed to make EOS more functional to businesses and users to create blockchain-based applications in a way that is much more user-friendly than Ethereum.
The main idea behind EOS is to create blockchain apps that work like web-based applications.
So far, blockchain apps have not managed to pull off the same performance and they believe this will stop mass adoption.
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.
Though, it is necessary to mention that until EOS reaches peak performance, we will not know if this is true or possible.
EOS also 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 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.
Larimer also claims that EOS has a better user experience. Even simple but crucial things such as password recovery are more secure.
The team behind EOS
Steemit is a social media and blogging platform that rewards users for publishing and curating content in cryptocurrency.
Bitshares is a decentralised platform for trading cryptocurrencies using blockchain technology.
Larimer has taken his experience from both projects into EOS. Now 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. He is also very active on Steemit, posting about EOS.
Larimer also doesn’t believe in violent means to enforce the governance of decentralised platforms.
Brendan 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.
How has EOS performed?
At the time of writing, one EOS token costs $4.08, has a total market cap of $3,785,089,089 and a circulating supply of 927,378,888 EOS.
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.
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.
Issues with EOS
Despite a wealth of good news, EOS is not without issues.
Weiss Crypto Ratings claims that EOS has problems with centralisation.
However, this may partly be due to EOS being very young and therefore before it can be fully adopted will have centralisation problems.
In 2019, Weiss lowered EOS’s rating after they concluded that EOS was not willing to do enough to increase decentralisation.
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.
Others have also 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.
That said, US citizens were not allowed to take part in the ICO (as well as Chinese), so it may not be a problem.
The all-important question: Is EOS better than Ethereum?
The short answer; it is still far too early to say (surprise, surprise!).
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 believe 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 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 backwards 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.
EOS may also add more programming languages in the future as well, 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.
If you remember anything from this article, make it these key points.
- 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.
- We’re still yet to see if EOS is an ‘Ethereum killer’. It is still far too early to predict how well EOS will perform.
- The primary difference between EOS and Ethereum is developers pay for smart contracts. In Ethereum, users must pay gas to use smart contracts.
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