Ethereum vs EOS: Can ETH Blockchain Endure the $4 Billion ICO Token?
Which is Better? EOS or Ethereum?
Since its inception, the Ethereum blockchain had been enjoying what some would call a monopoly on the smart contract market. This is because the platform had advanced functionalities that competitors were unable to parallel. However, the launch of the EOS redefined the smart contact market by challenging the status quo that Ethereum had established. Specifically, the EOS network has improved on the shortcomings of the Ethereum platform, which are mainly scaling and speed issues.
Difference Between EOS and Ethereum Platforms
Although they both support DApps and smart contracts, EOS and Ethereum platforms are very different. Their major point variation stems from three attributes, namely scalability, decentralization and security.
As mentioned earlier, the biggest concern on the Ethereum blockchain is scalability. This challenge is so severe that the network's founder, Vitalik Buterin, has acknowledged its presence and vowed to find ways to overcome it. Scalability is defined by the network’s ability to handle a specific number of transactions simultaneously. In the case of Ethereum, the scalability is too low, with the platform currently being able to perform a maximum of 15 transactions per second. This performance is appalling, especially if compared to the Visa payment processor which can manage 50,000 transactions per second.
On its part, the EOS network can handle a maximum of 1,000 transactions per second, representing a significant improvement over the Ethereum blockchain. Even better, the EOS development team is working to improve this rate to 1 million transactions per second. Regardless, the higher scalability of the EOS network makes it faster and more affordable than the Ethereum network. The problem, however, is the centralization of the EOS platform. Unlike Ethereum, EOS is controlled from a central point and has a history of freezing client accounts.
Regarding security, the Ethereum network beats EOS hands down. This is partly attributed to Ethereum’s prolonged existence, which has allowed it to implement much better security mechanisms. The EOS network has been breached severally, especially at the time of the mainnet inauguration. After multiple attacks, the EOS network froze user account to prevent a further loss of funds. Nonetheless, the security measures employed by EOS are expected to grow stronger as the network acclimatizes to the blockchain industry. For now, it is safe to assume that EOS has prioritized speed and scalability over security.
Although the EOS betters the Ethereum network in most aspects, it comes second in what is perhaps the most important of them all, decentralization. EOS is centralized in a way that only a select few of its nodes receive rewards form mining activities. Contrariwise, Bitcoin and Ethereum blockchain allow any node to participate and get rewards from mining. The EOS network usually rewards the top 21 honest nodes who are elected through voting by EOS users.
Usually, some individuals argue that the Ethereum network is centralized because large mining pools make up half of the network. This, however, is not true since the network uses a Proof-of-stake consensus algorithm.
While the Ethereum network charges gas fees for the deployment of smart contacts, EOS refunds staked tokens after a DApp is executed. For this reason, developers are favoring the EOS network over Ethereum.
During its ICO, Eos generated a whopping $4 billion in token sales, an indicator that the crypto community is confident in the project. In comparison, Ethereum accrued $18.4 million during its launch in 2015, although smart contacts were yet to be introduced.
Ethereum embraces decentralization, which is the fundamental belief of blockchain technology. However, the network has to improve its scaling ability to avoid being dethroned by EOS. Basically, Ethereum will lose its users to EOS if it does not improve the efficiency of its platform.