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Ethereum vs EOS – Analysis and Comparison

EOS stole the headlines in crypto websites back in 2018 after it successfully raised $4 billion in a yearlong ICO (Initial Coin Offering). The fact that EOS tries to challenge Ethereum’s dominance in the DApp (decentralized application) space with $4 billion funding is definitely interesting to see.

This article will analyze the comparison between Ethereum vs EOS and which one would likely come out on top in the next 5 years or more.

Ethereum And Its Biggest Advantages

So, what are Ethereum’s biggest selling points? Well, first and foremost, Ethereum has real users and real community. Unlike the majority of other smart contract platforms out there, Ethereum is actually being used by DeFi (decentralized finance) startups.

According to DappRadar, DeFi applications like Compound and 1inch could generate more than $4 million worth of volume. On the other hand, EOS, Tron, and other popular smart contract platforms still do not have any worthy DeFi applications with decent trading volume.

Not only that, Ethereum blockchain is also used for different variations of use cases. Decentralized exchanges, games, and stablecoins usually run on Ethereum. This gives a huge advantage to Ethereum due to its large user base. And as usual, existing users always attract new users as well.

Another big advantage of Ethereum over EOS is its active third-party developers. Ethereum is not only dependent on Ethereum core developers and Ethereum foundation. There are also decent influences coming from third-party developers. In the long-term, this will be a vital advantage for Ethereum.

Don’t forget that Ethereum is often considered one of the most decentralized cryptocurrencies all over the world. There is no single entity or individual with huge power on the Ethereum network. While many of their nodes are hosted on centralized services like AWS, those nodes are still owned by different people. On the other hand, EOS only has 21 entities as “block producers”. It’s undeniable that EOS is far more centralized than Ethereum.

EOS And Its Biggest Advantages

As a much newer blockchain platform than Ethereum, obviously, there are not many positive points that EOS can brag about over Ethereum. That being said, there are still some good points to mention about EOS.

First of all, EOS has much higher TPS (transaction per seconds). According to EOSNetworkMonitor, EOS is able to achieve 3996 TPS on its mainnet. Ethereum, in comparison, is only able to process around 15-25 TPS. EOS is faster due to its significantly different consensus mechanism.

EOS is using Delegated Proof-of-Stake (DPoS), where there are only 21 block producers who also act as validators. These 21 block producers are voted in by EOS token holders who chose to participate in the voting sessions (and they get more tokens in return).

And for this reason, EOS can become a much faster blockchain platform than Ethereum and Bitcoin. They only need 21 entities instead of thousands of miners competing for the same transactions and new blocks. For the same reason, EOS gas fees are also much cheaper than Ethereum’s.

However, the DPoS advantage is also its disadvantage. As people know, DPoS is much more centralized than PoW or standard PoS mechanisms. And many Ethereum supporters argue that it is much easier for EOS block producers to collude with each other compared to Ethereum’s miners (or validators in the future).

Another advantage of EOS over Ethereum is its massive funding. For comparison, Ethereum Foundation never had $4 billion to begin with. There is no details (as of today) on how Block.One is going to spend all of these billions of dollars, but at least we know they have a massive arsenal to begin with. We know that Block.One is currently developing Voice, a decentralized social network trying to take aim on Facebook. How much of their budget to be allocated on Voice after it’s released, we still don’t know yet.

Statistics Head To Head

Max Transactions Per Second On Mainnet:

  • Ethereum: 25
  • EOS: 3996

Top 3 DApps based on trading volume:

Market Liquidity:

  • ETH: ~$15-20 billion every day
  • EOS: ~$3.5-4.5 billion every day

Consensus Algorithm:

  • ETH: Currently on Proof-of-Work but plans to migrate to Proof-of-Stake
  • EOS: Delegated Proof-of-Stake

Main Use Cases:

  • ETH: DeFi, ERC-20 token issuance, stablecoins
  • EOS: DEX, gambling apps

Conclusion

In terms of Ethereum vs EOS, both of these blockchain platforms have their own advantages and disadvantages. That being said, it looks like Ethereum’s advantages are still more significant than EOS. Decentralization matters a lot when it comes to blockchain – and in this case, Ethereum is definitely more decentralized than EOS.

Not only that, the kinds of DApps on Ethereum are also diverse with stablecoins and DeFi applications being on the top of the list. Meanwhile, the most active DApps on EOS are usually gambling applications with Newdex being the exception (it’s a decentralized exchange).

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