Here’s How EOS (EOS) Could Be The Next Ethereum (ETH)

Many reading will likely already be familiar with the token that forms the basis of this discussion – EOS (EOS). It’s been on a pretty incredible run over the last couple of months and – for anyone that picked up an exposure back in October – has proven a real winner. It’s also one that has the potential to really shake up the cryptocurrency sector if its development and implementation play out as outlined by the company’s whitepaper.

EOS Daily Chart

And price action is reflecting this. Back on October 22, EOS went for less than $0.55 a piece. At its most recent close, the token went for $6.42. In less than eight weeks, that’s a more than 1060% run.

For those who’ve not yet come across EOS, it’s the representative token of a company (or project, more accurately) called, unsurprisingly, EOS, which is trying to position itself as the natural successor the Ethereum platform.

Right now, Ethereum is the king of the smart contract. It’s the platform on which the vast majority (and we’re talking in excess of 90%) of initial coin offerings (ICOs) rest and it’s, rightly, risen to a market capitalization of more than $66 billion at latest count since its inception.

EOS, on the other hand, is still in development. So what makes people think that it’s got a chance to kill off Ethereum?

Well, a few things. It’s rooted in a delegated proof of stake mechanism, as compares to the proof of work system on which Ethereum rests. This is (in concept, at least) far more efficient and – in turn – resistant to security threats.

It’s also a lot more scalable, with a single threaded performance of up to 100,000 transactions per second being touted by the white paper. Ethereum, on the other hand, is limited by the single threaded performance of a CPU. Sure, the team over at Ethereum (specifically, its creator, Buterin) has detailed a potential unlimited scalability through employing what’s called ‘sharding’ but, right now, this is a technologically challenging process and there’s no guarantee it can be implemented as predicted.

Jumping back to security, EOS is a lot more resistant to things like DDOS. EOS (token) ownership gives owners a proportional stake in the network. This limits any malicious operator to spamming (and, in turn, consuming) the portion of the network that their ownership represents. In other words, if someone wanted to DDOS EOS, they would have to buy a controlling portion of the outstanding EOS tokens, which would disincentivize the attack. Ethereum, on the other hand, can be taken down by a flood of high fee transactions.

So where does EOS come into this and what can we predict going forward for the token?

Well, as outlined above, EOS owners have proportional access to the network (in contrast to Ethereum, where ETH is required for so-called gas fees). This means that as the network grows, so should the value of the tokens themselves.

The recent action that we have seen is symptomatic of buying in anticipation of a beta launch of the platform near term and – as such – we expect the buying (and, in turn, the price rise) to continue heading into the start of next year.

It’s worth noting that much of the comparisons below are not entirely trustworthy given the nascent stage of the EOS platform development, so various elements of the platform (as compares to Ethereum) are subject to change. The above discussed are major components of the whitepaper, however, so even with things being subject to change as the development process matures, there’s a good chance that the comparator points (and, in turn, the relative benefits) will stand once implementation is complete.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Image courtesy of Eos.io