It is apparent that crypto and blockchain are developing rapidly. Just as Ether is based on some of bitcoin’s technologies, EOS now tries to fix Ethereum’s problems. The coin and team behind this project should provide a better solution than Ethereum.
So, you have heard about the most popular smart contract blockchains but want to know which is better: EOS vs. Ethereum? You have come to the right place, where you can learn everything you need to know!
In this article, we will compare these coins. Let’s take a look at a substitute for Ether and discuss these digital assets (EOS and Ethereum). We can look at their concepts, check out their systems, and see all the essential details about these coins.
What Is EOS?
Launched in 2018, EOS is an alternative to Ethereum. EOS is the crypto coin designed for EOS.IO blockchain protocol and ecosystem.
EOS is a smart contract ecosystem, similar to Ethereum, that runs decentralized apps and smart contracts. EOS, in essence, replicates all of the elements of a supercomputer, emulating computer processing hardware, storage, etc.
Developers can pay for additional computing resources in the form of EOS tokens, powering the blockchain-based ecosystem. Those that lend computer power earn EOS tokens. The EOS development community is not as vibrant as Ethereum’s, which has led to DeFi products primarily being based on other systems.
Where EOS differs is that it has Block. One and the support of Dan Larimer behind it, while Ethereum’s developer community is not taken as seriously.
What Is Ethereum?
It is an ecosystem that works like Bitcoin and gives an opportunity to create decentralized applications based on it.
Many users incorrectly use the term Ethereum to describe both the currency and the network itself. Please, keep in mind that Ethereum is a system. The coin is ETH or Ether.
It is the second-largest digital asset by market capitalization, after BTC. It is an alternative coin designed as a payment method for the Ethereum system.
It is aimed to facilitate the operating of ‘smart contracts’ without any delays, fraud, or third-party interference. This altcoin is one of the most trustworthy and used cryptocurrencies as many organizations around the globe now accept payments in Ethereum.
Ether can be utilized as a tradable currency. It can also be used to pay for products. However, Ether can be used to power certain features within dApps. For example, when creating a token on the ecosystem or using a smart contract, the developer or user must pay the network in ETH.
The Early Stages Of ETH
An idea of Ethereum appeared in 2013. A young IT expert and coder Vitalik Buterin thought that the community needed a secure system and more functions than Bitcoin had. He was assured that integrating a programming language would allow others to build apps.
This currency was produced in 2015, and more than 11.9 mln ETH was available for its investors. It was the first example of an ICO in the crypto segment.
At this stage, each coin was worth less than $1. Recently, it reached its highest price. It is trading above $2,500. Sounds great, right?
Ethereum gives this opportunity and the ability to transfer value without third-party interference.
These self-executing contracts will transfer the asset automatically when the conditions of the contract are met. It is impossible to change smart contracts once they have been admitted. This system within the Ethereum network saves time and money.
Ethereum as a Payment Solution
Ethereum technology eliminates certain risks and allows to move funds across wallets instantly with a minimum cost.
Businesses wishing to accept payments in Ethers can do so quite easily by integrating an Ethereum payment gateway, which will enable them to accept these transactions.
With fewer intermediaries involved, operation costs are lower, which along with other benefits, makes it a smart solution for companies. This helps millions of firms and websites to integrate Ethereum as a payment solution.
Compare EOS and Ethereum
Although EOS has similar goals as Ethereum, the way the platforms want to achieve those goals differ completely. One major caveat is that EOS sacrifices strict decentralization for improvements in scalability and lower transaction costs. Let’s take a deeper look.
EOS vs. Ethereum: Scalability
In terms of scalability, there are many challenges that both platforms have to address. So far, Ethereum is able to manage up to 15 transactions per second, and it is not enough to compete with traditional payment solutions; for example, Visa or MasterCard. The electronic payment system controls several thousand transactions per second on peak days. Recently, Vitalik Buterin announced changes that could multiply the number of processed transactions to 100,000 per second. First-layer optimizations such as sharding or second-layer processes such as plasma could increase the platform’s capacity. These solutions would significantly boost the numbers of transactions the platform could handle at a given time.
According to the EOS team, it is able to control up to 10,000 transactions per second. Some critics question these numbers, however. On the surface, this looks better, but what if we want to serve EOS in the IoT world, where would we be able to deal up to hundreds of thousands of transactions per second? In this case, EOS has a solution called an inter-blockchain system, which is able to make another EOS blockchain for a broader range of transfers. These blockchains connect to each other, and there is no limit to creating another system within EOS.
Does it look like we already have a winner in EOS vs. Ethereum comparison? Not so fast. Let’s find out the other sides.
Transaction cost is another issue for blockchain integration. Ethereum transactions have recently become the subject of controversy as the popularity of DeFi projects grows, and the sector expands to include additional new products. More and more Dapps are using Ethereum and requiring ETH gas to send money for stablecoins and other crypto value projects. Even trading on Uniswap requires ETH and the commissions are out of control in the last several months.
EOS does not have nearly as many Dapps built on the protocol. Therefore speeds are able to maintain at a high pace with low costs. This is both a blessing and a curse for EOS, as the protocol currently is in far less demand overall. However, there are rumblings in the sphere that EOS will soon be making some announcements that could make a significant difference in their future.
EOS will have to act fast before Ethereum 2.0 is rolled out, which addresses speed and scaling through Beacon Chains and Sharding.
Ethereum vs. EOS: Algorithms
In addition to scalability and fees, EOS also differs from Ethereum in its consensus protocol. Ethereum has a proof-of-work system, while EOS is based on the proof-of-stake concept. In Ethereum, each node has to solve a cryptographic hash puzzle in order to process a transaction within its ecosystem. As we know, Ethereum is decentralized, but its concept makes it hard to adapt.
Not only is it slow, but it also uses a lot of computing power. As a result, this adds up to colossal energy costs as well. Interestingly, the Ethereum team plans to migrate to a proof-of-stake consensus mechanism in the near future via the Casper protocol. Once Ethereum developers solve security problems with Casper, then Ethereum’s issues have a great chance to change.
With EOS, though, twenty-one nodes are responsible for producing new blocks. Critics argue that it is not a decentralized platform and that it abandons the spirit of blockchain tech altogether. Nevertheless, it guarantees scalability and network performance. This makes EOS very scalable and able to perform exponentially more transactions per second.
The team behind Ethereum made the platform’s contract-oriented language called Solidity. This language gives an opportunity to build smart contracts.
EOS smart contracts are usually based on C++. It is important to notice that developers can use any programming language that has a compiler that converts its code to web assembly. For newbies, it could be more convenient to start a career with smart contracts within the EOS ecosystem.
No matter what language you choose, the code quality has to be perfect because any minor problem has a chance to crash the whole system.
EOS vs. Ethereum: What Should We Expect?
Looking to the future, this EOS vs. Ethereum competition will influence the crypto industry.
Firstly, whichever side you are on in the EOS vs. Ethereum argument, both coins have performed well in the financial market.
Ethereum is the second most popular cryptocurrency in the world, just behind Bitcoin. In 2017 it soared by more than 10,000% and reached an all-time high of $130 billion in market capitalization. Not only this, but hundreds of crypto tokens have been built on top of the Ethereum system, and it is also home to over a thousand dApps.
When it comes to EOS, although it is still in its early days, it has performed exceptionally well. As mentioned earlier in the EOS vs. ETH guide, the project raised more than $2.5 bln during its one-year ICO.
During the ICO, investors were buying, selling, and trading the EOS coin, pushing EOS to a market cap of more than $17 billion. This is very impressive for a project that is yet to release its final product.
However, EOS is yet to achieve anything like what Ethereum has achieved. With that being said, though, if EOS can achieve its goals, then it will be a significantly better network than Ethereum.
If EOS can achieve instant, free, and millions of EOS transfers per second, it will be very hard for Ethereum to match that level of performance. However, if Ethereum can integrate ‘Proof of Stake,’ ‘Sharding’ and ‘Plasma’ effectively, it will be tough for its alternatives to pass Ethereum.
I Have Learned About These Currencies. What Is Next?
Hopefully, you have boosted your skills in these altcoins. You should understand the difference between EOS and Ethereum, their ecosystems, the technical aspects of these coins, and their history.
Finally, you should be able to make a choice.
Key Things That You Should Remember Before Investing
The first thing you should know is that EOS and Ethereum will have their pros and cons. Despite the exciting functionality both of these coins offer, the technology and the cryptocurrency industry are new and volatile. You should prepare for extreme volatility in this ecosystem. Just imagine that altcoins have a chance to surge up to 40-50% in a single day.
You should not get upset if things are harder at the beginning. You will boost your skills and will be able to build your own investment strategy over time if you put some effort into it.
You should research background info on each cryptocurrency on their websites, threads on Reddit, and other social media platforms. Yes, it will take a lot of time, and it is nearly impossible to compare digital assets correctly. But it is really worth it.
In order to check out everything you need to know about the coin, you have to do hours of research and pay close attention to free resources that will help you with this.
If you have found a cryptocurrency that suits your strategy (EOS vs. Ethereum), it is time to make your first step towards investing. Let me share a solution that will definitely help you.
Where Can You Buy EOS or Ether?
Are you ready to make your first EOS or ETH purchase? We have a service suitable for you. Take a look at NeuronEx. So, you will be able to get cryptocurrencies quickly and easily. Let’s dig in!
Is It Possible to Buy These Altcoins On NeuronEx?
Yes, you can. ETH is available on NeuronEx, and EOS is coming soon. This is a service made for financial transfers: for crypto to fiat and crypto to crypto exchange. You will be able to convert coins quickly and securely directly on NeuronEx.
It has a user-friendly interface, and its useful tools make the purchasing process smoother than ever before.
Moreover, it offers a great range of payment methods. Among 200 means of payment, there are credit and debit cards and bank transfers.
As a bonus, NeuronEx also has an app accessible for Android and iOS customers. When it comes to mobility and convenience, it is incredibly popular among users. Track currencies, use a converter and manage your budget all in one place.
How Can I Make a Transaction?
It is quite simple: you may use a converter, available on NeuronEx. Sign up for free, choose the most suitable type from the list of payment methods, and make your first financial transaction.
As an added value, NeuronEx has no hidden commission for ETH purchases. You can buy coins at a good cost and almost zero commissions.
Online Wallet on NeuronEx
And last but not least, as soon as you get Ethers or EOS, you need a place to store your funds no matter if you prefer trading or HODLing money.
Simply put, once you have gained a coin on an exchange, you will need a safe place to store your holdings. Using an online wallet instead of storing your crypto digital coins with an exchange gives you greater control over your virtual funds.
These wallets provide users with a digital solution for securely storing money and managing digital coins. These online wallets allow users to send and receive coins, store and spend, and also trade cryptocurrencies.
So, you should also try an online wallet accessible on NeuronEx.
It is a great place to store your money safely and securely. You will be able to access and manage your portfolio in a real-time mode and control your digital assets. Make transactions anonymously, convert and send cryptocurrencies all in one place.
That is all for now. Make an account for free on NeuronEx, and stay tuned for more great content.