Ethereum is currently by far the largest and most successful platform for decentralized applications, more and more DAPS are built on this platform. It has competitors looking to take its place. Stratis, Waves, Lisk, Neo, Ethereum classic. Each has its pros and cons
The name Ethereum killer has been thrown around left right and centre, this time however I think it is substantiated, not by any other 5 cryptos I have mentioned above but by EOS. And that is the crypto I will be talking about today.
I am not a programmer, a developer or software engineer. I am just an average guy doing research, analysing data and publishing his finding and opinion. When it comes to investments I leave emotions out and have a practical realistic approach.
I encourage you the reader to verify any and all info in this article, act as the blockchain in case I say something that is not entirely accurate please do correct me. And of course do your own due diligence. Goes without saying.
What is EOS
Eos is hosting environment for dapps. Decentralized applications. It’s n open source smart contract platform upon which dapps can be built on. Like Ethereum but better. It’s like an operating system running on a multicore processor. Unlike Ethereum on a single core processor. Will get to that in more detail. It has the ability to run multiple dapps at simultaneously.
The EOS.IO software introduces a new blockchain architecture designed to enable vertical and horizontal scaling of decentralized applications. This is achieved by creating an operating system-like construct upon which applications can be built. The software provides accounts, authentication, databases, asynchronous communication and the scheduling of applications across hundreds of CPU cores or clusters. The resulting technology is a blockchain architecture that scales to millions of transactions per second, eliminates user fees, and allows for quick and easy deployment of decentralized applications.
What is Ethereum?
Ethereum is a “decentralized computer, an open software platform based on blockchain technology that enables developers to build and deploy decentralized applications. Its main selling point feature is/are smart contracts.
With a 100+ decentralised applications built on it, it is currently the number 1 platform for developers.
What is a smart contract?
Smart contract is just a phrase used to describe computer code that can facilitate the exchange of money, content, property, shares, or anything of value. When running on the blockchain a smart contract becomes like a self-operating computer program that automatically executes when specific conditions are met. Because smart contracts run on the blockchain, they run exactly as programmed without any possibility of censorship, downtime, fraud or third party interference.
EOS vs ETH comparison
Imagine Ethereum as gaming console like play station 1 and apps as games built for this gaming console. This console can only handle a certain size of games, speed and effects. Has a slow response rate. And it can only run 1 game at a time. And you have to pay each time you wish to change games or play it. This is limiting the quality of the games that can be built on it and charges users of this console.
Did I mention that sometimes the console or the game on the console freezes or runs very slow.
EOS seeks to solve these challenges faced by the Ethereum network.
Run multiple games simultaneously. Play larger games with more impressive features and quality speed and effects and not pay any fees. Faster response time (latency)
This will birth a generation of new decentralized applications and enhance user experience.
Windows 95 to windows 10
3310 to Samsung galaxy
Ps1 to play station 4
Sandra bullock to Scarlet Johansson
Toyota to lambo
Code to wix
Current Problems & challenges with Ethereum
• Existing blockchain platforms are burdened by large fees and limited computational capacity (e: g speed and latency) that prevent widespread blockchain adoption.
• In order to gain widespread use, applications on the blockchain require a platform that is flexible enough to meet the following requirements:
• Scalability (transactions per second , 15tps only)
• You can’t build Bitshares and Steem on Ethereum. The platform will not allow it, it is not possible, and the platform cannot not support the technical demands. Only on grapheme.
• Disrupting businesses such as EBay, Uber, AirBnB, and Facebook, require blockchain technology capable of handling tens of millions of active daily users. ( meaning the platform must accommodate high transaction rate ) In certain cases, applications may not work unless a critical mass of users is reached and therefore a platform that can handle mass number of users is paramount. Therefore a blockchain capable of accommodating millions transactions per second is compulsory.
• Bitshares and Steemit have accomplished that to a degree.
• Placing all these on one platform to interoperate requires millions of t/p/s. Ethereum simply cannot support this at present.
• Scalability=- no congestion
• Steem and bitshares have highest t/p/s and are most heavily used blockchains. 600k-700k t/p/s per day each. That’s more t/p/s than BTC and ETH both combined. Testament to usability.
• The Ethereum network has been overwhelmed in the past. STATUS ICO being the most recent occasion. Too many transactions have caused congestion and a flash crash. This is due to poor scalability (speed) and singular threaded performance.
• A dispute in the past could not be resolved internally and has caused a fork. Creating a competitive network.
• Failed or broken applications cannot be frozen isolated and fixed. Instead it disrupts the whole network, forks happen and investors can lose their money. Eth and eth classic.
• Lightning networks and sharding are possible solutions. This means splitting a huge database into a network of smaller ones
• After the initial basic sharding (which will result in the implementation of Ethereum 2.0) Ethereum 3.0 will be developed – a blockchain system that will be capable of infinite sharding.
• This will be backed by a gradual transition from POW to PoS (employing a hybrid model in between to smoothen the path) through the introduction of Casper contracts.
• Application developers need the flexibility to offer users free services; users should not have to pay in order to use the platform or benefit from its services. A blockchain platform that is free to use for users will likely gain more widespread adoption. Developers and businesses can then create effective monetization strategies.
• With Eth you have to pay Gas fees.
• Businesses building blockchain based applications need the flexibility to enhance their applications with new features and unlimited possibilities. With Eth they are limited.
• All software is subject to bugs, even with the most rigorous of formal verification. The platform must be robust enough to fix bugs when they inevitably occur. Furthermore the platform must have a built in functionality where this can be done without disrupting the whole network
• Ethereum is not built that way to begin with.
• Eth seems to be a one man operation. News of Vitalik Buterins death has had a major tanking effect on the price of Ether.
• Here is an article explaining the challengers faced By Ethereum : https://medium.com/@yobanjo/ethereum-wont-scale-like-you-ve-been-told-cae445bef539
WHAT EOS HAS TO OFFER THAT ETH HASNT GOT
The EOS.IO software is designed from experience with proven concepts and best practices, and represents fundamental advancements in blockchain technology. The software is part of a holistic blueprint for a globally scalable blockchain society in which decentralised applications can be easily deployed and governed.
EOS.IO software is designed to facilitate inter-blockchain communication. Meaning you could have for example facebook and twitter running on EOS software and share the same account.
Low Latency or response rate
A good user experience demands reliable feedback with delay of no more than a few seconds. Longer delays frustrate users and make applications built on a blockchain less competitive with existing non-blockchain alternatives.
There are some applications that just cannot be implemented with parallel algorithms due to sequentially dependent steps. Applications such as exchanges need enough sequential performance to handle high volumes and therefore a platform with fast sequential performance is required.
Large scale applications need to divide the workload across multiple CPUs and computers.
Eos tokens are never consumed or burned. And there are no fees (unlike GAS with Eth)
Separating Transaction costs from Token Value
One of the major benefits of the EOS.IO software is that the amount of bandwidth available to an application is entirely independent of any token price. If an application owner holds a relevant number of tokens on a blockchain adopting EOS.IO software, then the application can run indefinitely within a fixed state and bandwidth usage. In such case, developers and users are unaffected from any price volatility in the token market and therefore not reliant on a price feed. In other words, a blockchain that adopts the EOS.IO software enables block producers to naturally increase bandwidth, computation, and storage available per token independent of the token's value.
The EOS.IO software enables blockchains to establish a peer-to-peer terms of service agreement or a binding contract among those users who sign it, referred to as a "constitution". The content of this constitution defines obligations among the users which cannot be entirely enforced by code and facilitates dispute resolution by establishing jurisdiction and choice of law along with other mutually accepted rules.
Constitution=every user signs a contract with another user creating an internal jurisdiction. Therefore if there is a dispute, it will be resolved within the EOS jurisdiction of the platform. Not in external courts
Smart contracts also define all of the obligations and potential penalties involved in an agreement, much like traditional contracts do, but the smart contract platform also automatically enforces all of these obligations and penalties
The EOS.IO software permits all accounts to be referenced by a unique human readable name of 2 to 32 characters in length. Unlike a long address made up of random characters. (It’s more user friendly)
DPOS vs. POS $ POW
A robust and flexible consensus protocol. Delegated Proof of Stake (DPOS) is the fastest, most efficient, most decentralized, and most flexible consensus model available. ... Reaching a consensus about the order in which updates should be applied is the purpose of Delegated Proof of Stake (DPOS). (DPOS) is a new method of securing a crypto-currency's network.
A web toolkit for interface development, self-describing interfaces, self-describing database schemes, and a declarative permission scheme.
Asynchronous Communication: the occurrence of events independent of the main program flow
Support thousand of commercial daps simultaneously
EOS is being developed by a company called block.one
The developer I must mention on this project is Dan Larimer, (the bill gates of blockchains looks like an average milkman but is actually a genius. The (inventor of Bitshares, Graphene, and Steem/Steemit, Graphene and POS),
Dan is the CTO and there are 40 other people in the team spread across the various sectors, marketing programming etc... Big operation.
Influential backers eg: bitfinex
General info & Distribution
This is NOT an ICO. They are not being crowd funded. It is a product token distribution/sale simulates mining for everyone to participate
Sale ends June 1st 2018
I found this extract on their website which I found somewhat confusing. My understanding is that the EOS token is simply a representation of value related to market demand. Nothing more. Would appreciate your opinion.
EOS is an all-round better smart contract platform that will be greatly more beneficial for developers to use.
It has no fees; it’s faster, safer and has more possibilities open for its application.
There are already projects planned to be built on it.
Sometime in 2018 when the project is ready and deployed for public use, I believe it to be a matter of time before it completely f&*ks Etyhereum in the A$@.
With the amount of eth it received during the 1 year sale of its tokens. If Block.One (the parent company of EOS) sold all of it upon launch of its finished product. It could seriously TANK Eths price.
Eos is on exodus, I assume the exodus team know what they are doing. Easiest way to get is probably to convert it within your exodus wallet like I did.
Those were my 2 cents on EOS and Ethereum. I hold both. I keep emotion out when I make judgements and have a very practical approach. Please do your own research. I encourage you the reader to add any info ii missed out, or if you think something is not entirely correct, please do leave a comment ( keep it positive ). This article is for information purposes only and not investment advice. Hope you found it helpful. Wish you wealth and health