Larimer also doesn’t believe in violent means to enforce the governance of decentralised platforms. 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. Also, the 15 transactions per second scalability issue mentioned in this EOS VS Ethereum guide earlier is due to the limits of Proof of Work.
Transactions and Speed
Ethereum imposes restrictions on developers to prevent any changes or disagreements, delegating major decisions to forks. The EOS network currently has a limited number of dApps, which means that it can handle high speeds with low costs. While this can be a good thing for EOS, as the space is in less demand right now, it also means that in order to take advantage of its full potential, changes need to happen soon.
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This blockchain platform was released on 31 January 2018 and in little more than a couple of years, it has earned the 44th spot on CoinMarketCap at the time of writing. 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 is eos better than ethereum the king of smart contracts. The people that you can vote for are called “Block Producers”, these are the ones that verify transactions and earn rewards for doing so. In total 21 block producers are responsible for keeping the network secure. This is why the Ethereum team are planning to change their consensus mechanism to something called Proof of Stake.
Disadvantages of EOS: A Decentralized Yet Centralized Network
As you will see from the below image, every year the total supply of EOS coins will increase by 5%. This is similar to real-world inflation, where a central bank prints more money. Out of this 5%, 1% is given to the block producers as a reward for validating transactions, which means that users don’t need to pay any transaction fees when they send funds. In fact, the gas fees have become so high that it has become a major hurdle for developers to actually run their apps on the Ethereum chain. This is why they are always on the lookout for alternative platforms.
Ethereum vs EOS: Target Market
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. BitDegree aims to uncover, simplify & share Web3 & cryptocurrency education with the masses. Join millions, easily discover and understand cryptocurrencies, price charts, top crypto exchanges & wallets in one place. Firstly, whichever side you are on in the EOS VS Ethereum argument, both projects have performed well in the cryptocurrency market.
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EOS trails behind in 7th place, with a market cap of just over $3 billion. Similarly, while ETH is trading at around $185, EOS is trading at just $3.40. These values are certainly boosted by traders and speculators, which see Ethereum as a profitable investment. PoW is considered to be a slow and inefficient mechanism, which limits the scalability of a cryptocurrency. Miners need to be the first to solve cryptographic hash puzzles in order to create new blocks. This requires significant hardware with high computational power which is very expensive to run.
- Since leaving his business, he has devoted himself fulltime to blockchain technology in general and Ethereum in particular.
- Despite experiencing a good level of success, there are already competitors hoping to run more efficiently than the Ethereum network.
- Just by looking at the price gains tables there is no comparison between EOS vs Ethereum.
- With the majority of dapps already operating on Ethereum, it’ll be a challenge for EOS to dethrone the king.
- Currently, however, Ethereum enjoys a lot more activity in that regard.
- For example, did you know that over 52,000 Facebook “Likes” happen every single second of the day?
- The potential is certainly there, but there are currently limitations in both assets that we’ve examined below.
Developers can build whatever their imagination comes up with, protocol allowing. Currently, the Ethereum network, despite being the strongest asset, is highly congested. This has caused ETH gas fees to soar to the point of becoming unsustainable. This has created a need for any type of solution, and now several exist.