Cryptocurrency

Ethereum vs. EOS – A comparison of the block chains

In today’s article we want to take two of the most famous ten crypto-currencies to the chest and compare them with each other: the talk is of Ethereum vs. EOS. Both can be, without exaggerating, to be counted among probably the most well-known block chain projects. On the one hand, Ethereum wants to be perceived as a decentralised world computer and on the other hand, we see highly scalable, the EOS is.We would now like to bring a little light into the Dark, we look at the two block chains. What is the respective consensus mechanism, and wherein the governance models differ? In this sense, the small fight Ethereum vs. EOS starts.

Ethereum vs. EOS – An introduction

We have just noted that Ethereum is focused on a decentralized world computer and such a map would. EOS relies on a high level of scalability, and decentralized applications (dApps).While Ethereum relies heavily on the factor of decentralisation, dispensed with EOS here, aware on some aspects in order to achieve an increased scalability. Therefore, you should be in sweeping statements á la EOS is better than Ethereum, or vice versa carefully. Because at the end of the day, each System offers its own advantages and disadvantages.Therefore, we look at in the Following, the three basic characteristics of the two block chains. This can be with the keywords security, decentralization and scalability to summarize.

A look at the Ethereum Blockchain

According to information from Ethereum is a global, decentralised platform for money, and new kinds of applications. You could find more terms to describe Ethereum: Ethereum is a decentralized Smart Contract platform. It is the world’s leading programmable Blockchain in the world. So far, So good.Other characteristics of Ethereum are the Following: Ethereum has a native Token (ETH), a Blockchain, Nodes, and Miner. The Central Element of the Ethereum virtual Computer ‘that is better than Ethereum Virtual Machine or, in short, EVM is known’. On the Basis of, or with the help of which you can be Smart Contracts, and applied created. Slightly more technical terms, the Ethereum Virtual Machine is something like Runtime Environment for Smart Contracts.As mentioned above, ETH is the native Token of the Ethereum network. At the current time there are approximately 108 million ETH. It is important, however, to know that there is no ‘hard cap’. This means that there is no upper limit for the number of ETH. Currently the inflation rate is about 10% per year, and this will be in the range of 1-2 percent.

ETH and Gas as a digital petrol

ETH is used in the same way as the Bitcoin Mining as an incentive for the Miner to keep the network, in turn, on a decentralised basis. While Ethereum builds currently still at a Proof-of-Work algorithm, it will run in the future on Proof-of-Stake. Of course, the ETH can also be used as a ’normal‘ means of payment between users. A more interesting use of the ETH, however, lies in its use as a ‘gas’. Gas is ultimately nothing more than the internal price to a Smart Contract on the Ethereum Blockchain to run. In other words, one can think of Gas as a cost for the provided computing power.In order to make it a little clearer, the car example. To drive with our car, we need petrol (engl. gas). Depending on whether we drive a short distance or a long distance, do we need less or more fuel. And so it is with Smart Contracts: depending on the length and size of our Contracts, we pay more or less Gas.The best and safest stock market choose for you to opt for the right provider is not always easy. Therefore, we recommend that you take a look at our Bitcoin brokers & exchanges to throw a comparison. Trading on the safest and best exchanges in the world! For Comparison

EOS Blockchain: highly scalable and little decentralized

EOS is characterized by a very good scalability (in comparison to Ethereum). In addition, it supports both vertical (engl. scale-up) and horizontal (engl. scale-out) scaling. In the case of vertical scaling the performance of an existing Node/computer is increased by Adding resources. This can be, for example, Adding more memory or a new CPU. Horizontal scale knows no boundaries, because this term refers to the Adding of new Nodes/computer.In short: in the case of vertical scaling, an Upgrade of the existing system and in the case of horizontal scaling, the existing System will be extended with new computer.EOS offers a kind of operating system on which applications can be built. In the process, Account Management, authentication, database, load balancing of applications on various CPUs, and so on are supplied from the point of view of Developers, some interesting aspects:.

Delegated Proof-of-Stake with advantages and disadvantages

EOS even advertises that you can develop on your own remote operating system applications in the industrial scale and use. The special feature of EOS is also used in the consensus algorithm. So EOS does not use Proof-of-Stake, but a Delegated Proof-of-Stake. The word ‘Delegated’ already gives us a hint that it is a Proof-of-Stake algorithm, in which there are delegates. To put it differently: anyone who considers themselves a Token, you can have a say on a voting system, who can act as a ‘block producer’.In theory (and I really mean in theory) can be each of the participants to the ‘block producer’. The difficulty, however, is to convince others to vote for a self. And this is also a great weakness of the EOS, to which we shall come to speak again is. In short, it is about the fact that EOS has only a few validators, and this is more or less a kind of ‘cartel’ form.

Ethereum vs. EOS – summary and Overview

In the Following, the main differences and characteristics are further summarized. We start with Ethereum.ETH is used with PoW as an incentive for the Miner. The native Token fulfills the purpose as a means of payment for Smart Contracts.The transaction rate per second (Tx/s) is 9. The average time for a block confirmation is about 20 seconds.Ethereum is based on a Proof-of-Work algorithm.Currently, there are approximately 6700 validators in the Ethereum network, we now come to EOS.The native Token EOS is used to voting in the network.The transaction rate per second is 4000. At the same time, confirmation time is for a Block of just 1.5 seconds.EOS is based on a Delegated Proof-of-Stake algorithm.Only 21 validators exist in EOS.As already mentioned, there are in such a comparison neither winners nor losers. You have to look for a specific aspect (eg. Scalability) and can compare then. To do this, one must be always aware of one thing.

The Trilemma of scalability – Ethereum vs. EOS

If the scalability is increased in a System, then either the degree of decentralization, security, or both aspects will suffer. If, in turn, less emphasis is placed on scalability, security or the degree of decentralization increase. This is also known as scalability-Trilemma.We can meet at the end of the article, so the following statements:Ethereum is slower than the EOS. Therefore, Ethereum, however, is safer and has a higher degree of decentralization. EOS is faster than Ethereum and much more centralized. If we look at the comparison again, we see quickly the purposes for which the block chains have been designed. EOS has been designed clearly with the aim, to process transactions quickly and reliably. This is what we see on the basis of the Tx/s, as well as the time for a block confirmation. We, in turn, throwing a look at Ethereum, and the number of validators, we can see that the (current) focus is on security and decentralisation.Ethereum vs. EOS. How would you rate the two block chains? You see, in the case of EOS, the benefits of better scalability, or the disadvantages of the (lack of) decentralisation?Come in to our Telegram Chat and talk with the experts and the Community. Subscribe to our News channel to not miss any News. (Image Source: Shutterstock)

About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.