EOS the Ethereum Killer?
Blockchain Evolution
In 2008 Bitcoin proved the concept of a trustless ledger and the importance of blockchain technology. For the first time in history users could transmit assets online securely and safely. Bitcoin eliminated the double spending problem.
In 2014 Ethereum proved the demand for generalised smart contracts. After bitcoin proved the importance of digital money, Ethereum aimed to build the "programmable money" or smart contracts. A smart contract is a computer protocol intended to facilitate, verify, or enforce the negotiation or performance of a contract.
Future Blockchain dApps (Decentrilized Applications)
(Decentrilized Applications) Decentralized applications (dApps) are applications that run on a P2P network of computers (blockchain) rather than a single computer. Future apps on the Blockchain (dApps) will require new scale of performance. Currently Ethereum is limited to less than 30 transactions per second. The apps that we currencly use such as facebook, snapchat, amazon, require far more transations that what Ethereum currently handles.
Visa and Mastercard required 20,000 transactions per second not mentioning the other payment systems. Facebook has 50,000 likes per second not counting the posts, reactions and other actions. The financial industry requires 100,000 transactions per second. If we put all of these in a single blockchain platform so they can operate it will require millions of transactions per second.
Blockchain Technology Today
There is a big gap where we are now and where we need to be in order to process millions of transactions per second.
Solution: Blockchain Operating System
In order to achieve this massive scalability so future dApps developers can build dApps an Operating system is needed. Think of this like all the apps that are build on Apple computers. They need to be build on top of MacOS. EOS aims to be the MacOS of the blockchain technology.
What is EOS?
EOS is a smart contract platform or an app development platform that allows developers to build and run apps on the blockchain without asking anyone permission to do so. Is like an hosting environment for a DApps (decentralized applications). Developers will be able to build DApps much cheaper and be able to integrate with each other. EOS will be able to handle millions of transactions per second so the future Dapps can be build on top of it.
What are the requirements of Decentralized Applications?
1. Web Application- Users dont need to download and install anything.
2. Needs to support millions of users. If you can't support millions of users it will be hard to build a profitable business or competitive business with the current centralized platforms.
3. Free for App users. If the apps charges micro payments to the users every time they load the web page users will leave the platform.
4. Responsive- When a user clicks submit it needs to be responsive immediately.
5. Upgradable- No business or app can survive without being able to change and upgrade to the demand of the changing market. Users may expect new features and the app developer should be able to upgrade to accommodate such requirements.
6. Account Names - Users are used to account names and not to cryptographic keys that they can loose and never be able to access their accounts.
7. Account Recovery - This is a very important feature that is missing on the current blockchain ecosystem. If you lose your private key or it get stolen you lose everything forever. Mass adoption of blockchain apps needs to provide a system of recovery easy for users.
8. Thousands of Actions per second. As we have established in order for users to have the same experience with current centralized apps like (Facebook, Visa, Amazon) the dApp needs to perform thousands or millions of actions per second.
9. Bug Recovery- According to Dan Larimer "Software is an imperfect art" and there is only one way to do it right and an infinite ways to screw it up. So statistically speaking there will be a bug sometimes. These bugs can cost millions of dollars lost like in the case of DAO. On the Ehtereum platform broken apps result in loses like DAO or hard forks like Ehtereum Classic. With EOS all of this will be preventable.
EOS aims to provide all of the above features. All of the above features are not currently possible on the Ethereum network. Note that Vitalik Buterin Ethereum founder has laid out a roadmap to "unlimited scalability" which heavily relies on the concept of sharding. More of this on another post.
Conclusion
EOS aims to be the first Blockchain Operating System with faster blockchain application development and massively reduces the difficulty of building dApps. EOS is currently under development and I am personally positive for both platforms and that there is a future in case both deliver on their promises. I believe it's safe to say that EOS offers several innovative features that simply are not available on the Ethereum network. Feel free to comment below with comments or criticisms!
Please do not consider anything in this post to be investment advice, and always do your own due diligence and research.
I think EOS and Ethereum will reenforce each other and will make a difference. At least I hope so :)
Lol I agree with you. I think they will push each other and I hope both will succeed. I believe the crypto community needs to be stronger together rather than divided.
Indeed. They should change the world together. People shout to much bad things around :)
I remain optimistic about the future of cyrpto community. I understand that now it looks like the wild west but I believe it will consolidate as more people adopt it and the blockchain technology is improved.
Hi Mr. Z, nicely presented and informative post, thanks for sharing. Have you read Dan Larimers review, "Casper as an eos contract" ?
https://steemit.com/eos/@dan/casper-as-an-eos-contract
I particularly like the "DPOS is Pipelined Casper" section and look forward to hear more about pipelining in EOS, apparently Dan will be releasing a paper detailing a breakthrough Block.one has made in relation to latency / response times. As you point out in 4 "responsive" is a requirement of dapps.
Hi John,
Yeah so far Dan as done a good job with EOS and I am looking forward for the new updates. I also like the approach and the process they are distributing tokens. Taking the time to build the project and allowing everyone to participate in it and allowing the market to determine the price of EOS and limiting the influence of the wales for manipulating the price. Dan has the experience and so far he has delivered. I am looking forward to see the project evolve.
Awesome project, EOS potentially provides scaling solutions for Ethereum. Projects such as Plasma and Raiden will require infrastructure for cross chain transactions. I don't see that transaction fees or gas alone as an incentive to provide infrastructure. If we can have Casper as an EOS contract then why not Plasma as an EOS contract.
Totally agree. At this stage EOS is focusing on building the protocol layers that can support large scale projects. I believe once EOS or other projects like TEZOS will finish the protocol layers then we can see application layers being build on top of these platforms. With regards to Ehtereum and EOS I hope Vitalik and Dan can find a way to collaborate but for now to me they look like Steve Jobs and Bill Gates in the early days, a bit too much competition with each other. The future looks bright though, the disruptors will get disrupted.
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NOTIFYThere were a lot of killers.
Maybe they can both flourish. The community needs to grow and new developments like EOS are always welcomed. This article focuses on the limitation of the current blockchain technology in achieving scalability to sustain the demand for future apps.
What an effort you have put here , to be honest this post do need a lot of up votes , and it surely deserves that. You explained it so well that first time ever an non tech person like myself got to understand it. I was hearing this EOS but didn't get the idea what this is all about. Here , things being clarified and glad to have it read :) @zackvideos
Thanks @globetrottergcc. EOS tokens will be used as bandwidth i.e. think as bandwidth as space like land, imagine a country having 1 billion plots of land and the more land you own the more space you have so think of it like this. You can rent your land to people who want to use it to farm crop and sell their products but you'll make a monthly rental income and we all know how rents work less rentable space more the rents go up same with bandwidth eventually 1 billion EOS tokens will be sold the price of each token will go up depending on how well DAPPS do. If a DAPP wants to expand and requires Bandwith and business grows then they will require more bandwidth, eventually will get to a point when the price of EOS will be asking price due to demand. Steemit as already proved this theory. People are already renting out Steem power. In the future if the demand for dApps will be high on EOS platform, those who own tokens can rent out the bandwith just like renting out real estate. I hope this example help.
Wow thats going to be huge , such a genius idea it is and really helpful for all and sundry to make something out of the EOS Tokens ,indeed! A very beautifully explanation:)
Thank you. The blockchain future looks bright.
Yeah it surely is and Bit coin is rising , the growth ratio was good today:)
Well bitcoin is looking to grow up to 7K before it retraces back. But again this is just my humble opinion and not investment advise. Long term trend remains bullish though.