For many years, Ethereum has dominated the smart contract market. Its features and functionality were ahead of its time and no other platform can match it.
Well, not but at least until EOS comes out. Although Ethereum has dominated smart contracts today, it seems that EOS is redefining them.
EOS promises to deliver the important developments that Ethereum is being challenged with and possess new features to make a better protocol. Much of Ethereum’s shortcomings come from the network’s slow speed and scalability issues.
1. Security, Decentralization and Scalability
These are the three attributes that set the two decentralized application platforms (Dapps) apart. Their approach to scalability, decentralization, and security are the factors that let users determine which platform to choose and also the factors that make both two of the coins. most competitive electronics.
The security of a Blockchain refers to the network’s ability to resist attacks. When it comes to security, EOS once had a problem when the entire EOS mainnet was suddenly frozen just 2 days after it went live.
The platform also has a lot of vulnerabilities that make it easy for the network to be hacked. However, the project is still in development anyway and will take longer to be as stable and secure as Ethereum – a platform that has existed for many years.
Ethereum has prioritized security and it is one of the few projects that has not suffered from a security scandal. In contrast, EOS seems to have sacrificed security in exchange for speed and scalability.
EOS seems to have outperformed Ethereum in a few respects, but there’s one reason that can defeat the entire purpose of its existence: centralization. EOS is centralized because its mining rewards are given to the top 21 honest nodes.
Unlike Bitcoin and Ethereum, where anyone can mine and get rewarded, EOS takes a different approach. EOS users will vote on the authenticity of a block, and the top 21 honest nodes will create new nodes. This makes the process centralized to 21 players on the network.
It is also said that Ethereum is as centralized as EOS because it is controlled by a few mining pools that control almost half of the network. However, they are not exactly the same. Ethereum uses a Proof of Work (PoW) model while EOS uses a new algorithmic model called Delegated-Proof-of-Stake (DPoS).
Ability of extension
This is one of the most worrying issues for Ethereum. Vitalik Buterin himself, the founder of Ethereum, has also acknowledged that this is a problem for the network and promises to continue to find ways to improve it.
Scalability revolves around the number of transactions the network can perform at a time. For Ethereum, this number is too low and slow. Currently, the Ethereum network only handles 15 transactions per second (TPS), and this has been criticized because companies like Visa are capable of doing up to 50,000 TPS.
For its part, EOS has found a way to solve the problem with scalability. This Blockchain network boasts that it can handle up to 1,000 transactions per second. The team behind EOS is still planning to improve this, aiming to increase to millions of transactions per second.
However, at the present time, 1,000 TPS compared to 15 TPS is already a big difference. Its scalability also increases usability efficiency as EOS is cheaper and faster than Ethereum.
However, the price to pay for this scalability is quite large. That is, EOS is more centralized than Ethereum. Ethereum is decentralized and that’s what touches the hearts of Ethereum fans. On the other hand, EOS is more centralized and the network has even frozen user accounts.
2. Other Big Differences
While EOS requires you to make a deposit before making a Dapp, they are refunded immediately after execution. On the other hand, Ethereum requires users to pay Gas fees when executing smart contracts. This has driven more projects towards the EOS network in recent times.
EOS has gone down in history as the biggest ICO ever after raising over $4 billion. This partly shows that investors have a lot of faith in the project. Back in 2015, Ethereum only raised $18.4 million but it’s important to point out that it’s support for smart contracts is unknown.
Ethereum is stable and works in accordance with the fundamental beliefs of Blockchain technology, however, it needs to improve on its scalability or else it will no longer matter whether EOS is centralized. or delegating.
The effect will come before everything else. Ethereum may have a larger and more loyal following community or fan base than EOS, but without some fundamental changes, EOS will surely surpass those numbers.