Published in: Blog

EOS and Ethereum Guide And What’s In Store For Humanity?

Author Bacoor Team

Published on: July 27, 2021

EOS and Ethereum EOS and

EOS and Ethereum have been considered controversial topics by many people.

Ethereum wants to decentralize the computing of the world. In the meanwhile, EOS’s aim is to operate speedy decentralized applications (dApps). Therefore, each protocol uses a dissimilar consensus algorithm and a different governance model.

Eventually, both projects have their advantages and according to their purposes.

First, let’s study the basics.

Table of Contents

What is Ethereum (ETH)?

Ethereum is a decentralized smart contract platform. The Ethereum network has a token (ETH), a blockchain, nodes, and miners. Additionally, the blockchain continues consensus for a ‘virtual computer’ dubbed the Ethereum Virtual Machine (EVM). As a result, smart contracts given out can be created and deployed on the EVM.

ETH is the native token on the Ethereum network with the current inflation rate of 10% a year.

ETH tokens can be used not only for payments like Bitcoin but also for powering smart contracts. In addition, when running a smart contract, the fee will be turned into ‘gas’ to then power a smart contract on the EVM. This concept is in the same way as gasoline you put in your car. Also, the amount of “gas” will be different as a different amount of gas depending on how long your journey is

What is EOS?

EOS and Ethereum (ETH)

EOS.IO is a blockchain architecture created to allow vertical and horizontal scaling of Dapps through an operating system-like construct upon which applications can be built.

In detail, the system offers accounts, authentication, databases, asynchronous communication, and the plan of applications across many CPU cores or clusters.

This blockchain architecture has turned out to eliminate user fees and be available for fast and easy deployment and maintenance of Dapps.

EOS.IO operates as both a base-layer blockchain and as a smart contract platform. The chosen consensus algorithm is based on DPoS, or Delegated Proof-of-Stake, meaning those who hold tokens on the platform may select block producers through a continuous approval voting system.

Anyone may choose to participate in block production and will be given an opportunity to produce blocks, provided they can persuade token holders to vote for them.

Consensus Mechanism

Ethereum is a proof-of-work model, and EOS is a delegated proof-of-stake model. Hence, in the Ethereum network, each node has to solve a cryptographic puzzle in order to confirm a transaction on the blockchain itself.

While in EOS, 21 nodes are in charge of producing these new blocks, which guarantees stability and network performance. Fortunately, users do not have to await transaction confirmation from every node and consensus from all the nodes.

Ethereum Performance Over the Years

When it was initially launched back in 2015, Ethereum started with a value of $2.77 per coin. Over its first three days of trading, the price dropped to $0.68. In March of 2016, the price hit its first high of $15 per coin. On May 6th of 2017 after the ICO boom, the price of ETH hit a new high of $95 per coin. By September 18th of that year, ETH reached $800. When 2018 came, on January 13th, Ethereum became quite successful with its all-time high of $1.400.

The current value of ETH is $2,057.29

EOS Performance Over the Years

When it was initially launched back in 2017, its price was $2.29. It doubled within the first day at $5.40. While this was impressive at first, the coin started falling in value and found its bottom line at only $0.59. It only got higher in value when the crypto-boom happened and on January 13th of 2018, its value rose to $16.39. In May of 2018, the EOS price jumped to $22.89. However, that being said, nowadays the value is stable between $2 and $2.8. This is due to the fact that it dropped to its bottom of $1.86 on December 7th of 2018, and progression from that point onward has been slow.

The current value of EOS is $3.56.

EOS vs Ethereum: What does the Future Hold?

EOS and Ethereum future

It is undeniable that both projects have performed well in the cryptocurrency market. Namely, Ethereum is the second most popular cryptocurrency in the world, just behind Bitcoin. In addition, hundreds of cryptocurrency tokens have been developed in the Ethereum blockchain.

In terms of EOS, the project accelerated more than $2.5 billion during its one-year ICO.

This is very impressive for a new project

On the other hand, EOS has not achieved anything the same as what Ethereum has done. Accordingly, if EOS can reach its goals, it can be a significantly better blockchain than Ethereum.

If EOS can attain immediate, free millions of transactions per second, it will be very hard for Ethereum to catch up with that level of performance. Nevertheless, if Ethereum can carry out ‘Proof of Stake’, ‘Sharding’ and ‘Plasma’ successfully, it will be tricky for Ethereum alternatives to defeat Ethereum.

Consequently, please note that the cryptocurrency market is unpredictable, fastest-changing. All you can do is check for regular updates on both of the blockchains’ development progress!