Fighting it out for the Top Spot: EOS against Ethereum

The Cryptocurrency marketplace has been receiving hype, both from the media and the investor community at large. The majority of the industry’s focus is on projects and platforms that highlight the decentralized nature of trading with such cryptocurrencies, with Bitcoin undeniably claiming the top spot. However, over time, newer alternative networks like Ethereum started to emerge, providing more efficiency to capitalize on the untapped capabilities of blockchain technology. While Ethereum had been the “go to” platform for developing decentralized applications, fledgling projects like EOS have now turned into quite a threat to Ethereum’s position. EOS aims to address all the plaguing issues such as scalability on the Ethereum Network and is thus marketed and structured quite differently from Ethereum.

Current market Scenario for Ethereum and EOS

Both Ethereum and EOS are major players in the crypto-space, with Ethereum undoubtedly claiming the higher ranking, ranked 2^nd, as of 24/04/2018 in terms of market cap. EOS, a relatively new arrival in the dApp market, has since achieved a ranking of 5^th at the time of writing, which is indicative of the success attained by the EOS team over such a short time.  Although Ethereum’s market cap of $67,624,318,227 is considerably greater than EOS’s $11,077,704,597 market cap, EOS has enjoyed significant success this year compared to a rather low performing first quarter for Ethereum. In terms of growth, EOS was trading at a high of $6.76 on March 25^th to $11.79 on April 23^rd. Comparing this with Ethereum’s value, which rose from $ 535.82 to $ 646.70, EOS has definitely seen more of a growth than its older counterpart.

Major Points of Competition between EOS and Ethereum

Both Ethereum and EOS are platforms for developing decentralized apps on the blockchain network, with Ethereum being the first to introduce the smart contracts functionality to its blockchain. Smart Contracts are the main basis for decentralization and eliminate the risk of fraud or malicious third party interference.  EOS’s platform is based on the Ethereum model with some major improvements including higher transaction processing speeds and lower transaction fees. Below are some points of difference between both networks in terms of usage.

• Target markets: When it comes to targeting users, Ethereum and EOS have quite a different approach, with Ethereum receiving funding from different investors through crowd sales and private investments. Ethereum currently is the number one choice for bigger organizations for developing their own dApp on a secure blockchain network.
  EOS, on the other hand, focuses mainly on independent developers who are looking to produce a diverse range of dApps efficiently and with a profit. This is because EOS has no transaction fees, which are really helpful for users on a tight budget.
• Protocols: Ethereum uses the Proof-of-Work protocol, capable of processing an average of 15 transactions /second. The proof-of-Work consensus protocol requires miners to prove their verification speeds on the network to claim a reward or return. It also allows the Ethereum network to automatically address issues with any dApps on its network. On the other hand, EOS uses a delegated Proof-Of-Stake protocol which is designed to eliminate the “bottleneck” experienced by the Ethereum network. It is radically different than the PoW protocol, as developers can easily address issues in a dApp without freezing or affecting other accounts on the network. This is also the prime reason for EOS’s instantaneous transactions.

• Programming Language: When it comes to programming languages, Ethereum can only use “Solidity” a native programming language designed for Ethereum. EOS, on the other hand, has the ability to use any programming language which is compatible with Web Assembly. This includes C++, which is preferred by an overwhelming majority of developers in the industry.

Closing thoughts

Both EOS and Ethereum currently hold the top spots for dApp development on the blockchain network. Ethereum’s older model may have some lingering scalability issues but is still preferred by industry leaders due to its reputation and longevity in the market. On the other hand, EOS caters towards developers as well as users who prefer faster transaction processing speeds, as well as lower transaction costs. Overall, the success of both projects depends on the future plans of both teams, as well as the degree of adoption these platforms experience among the general populous.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of Rogelio A. Galaviz C. via Flickr