Till a few months back, Ethereum was a supreme leader and enjoyed the monopoly when it came to building up Smart Contracts and Dapps on a blockchain. But as the projects matured and moved out of the Ethereum Mainnet to their own Mainnets, the competition increases for hosting of Dapps and other projects. With Ethereum’ network getting congested and scalability issues started creeping up, a lot of projects chose these newer blockchains. On such competitors that’s showing away signs of taking away the crown from Ethereum is EOS. Comparing the two, EOS does have its advantages but there are still some places where Ethereum has the answer.
EOS gaining force over Ethereum
As it is known, the Ethereum Blockchain is currently the world’s leading network for the development of decentralized applications. However, it does seem that the EOS network is hot on its heels. According to data from dappradar.com, there are a total of 13 dApps that have seen more than 300 users in the last 24 hours. 6 of them on Ethereum and 7 on EOS.
Ether top Apps
EOS top dApps
Understanding the basic difference before comparing
Ethereum is a blockchain-based distributed computing platform and operating system that supports smart contract (scripting) development. 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 the 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.
On the other hand, 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.
The key differentiators between the two in terms of making Dapps are as follows
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.
EOS boasts zero transaction fees. Instead of a fee, executing a smart contract requires you to stake tokens that you immediately receive back after execution. Dapp developers choose whether they’re the ones who stake tokens for their users or if the users must stake their own.
Ethereum requires you to burn ETH (Gas) when executing smart contracts. The amount of gas you need to burn depends on the network congestion as well as the complexity of your contract.
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.
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.
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. The long-awaited Constantinople upgrade will reportedly be launched on the Ethereum testnet as soon as next month and would change things for Ethereum as well. In the meantime, all that cryptocurrency enthusiasts can do is wait and see, as such takeover will not happen overnight.
Who will win the battle of Dapp Supremacy- Ethereum or EOS? DO let us know your views on the same.
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.