When the EOS network started in 2018, it appeared to be one of Ethereum (ETH )’s biggest competitors – not only in terms of providing a scalable development platform for decentralized applications or DApps, but also in terms of A well-funded project with great support that can compete with Ethereum as the second cryptocurrency.
While EDApps OS is definitely a worthy competitor, so far it’s hard to argue that it toppled Ethereum According to the State of the DApps, it hosts almost nine times more DApps on its platform than EOS. However, EOS is still a major competitor, largely due to its superior performance. EOS enables more than 700,000 transactions within 24 hours and can currently process 20 times the volume of Ethereum. This also leads to user numbers, with EOS now catching up.
The Ethereum 2.0 update is emerging more and more and promises to improve scalability through sharding. So, How will the new and improved version of Ethereum keep up with EOS?
Scalability: The name of the game
Ethereum’s ongoing challenges in terms of scalability have been one of the most pressing drivers for the 2.0 implementation. Currently, the platform can process around 30 transactions per second, which leads to frequent network congestion and rising gas rates.
The co-founder of Ethereum, Vitalik Buterin, has indicated that the implementation of ETH 2.0 will bring a great improvement and will eventually reach 100,000 transactions per second (TPS) using the “sharding” mechanism that enables parallel execution through the system Breaking the blockchain into pieces. Although the first phase of the Ethereum upgrade will take place in late summer 2020, sharding will only be implemented in the last phase – which is about two years away – in order to achieve the guaranteed speed of 100,000 TPS.
In contrast to Ethereum EOS was designed from the ground up with scalability in mind and is achieved by enabling parallel transaction processing while keeping the number of block makers low, which speeds performance.. EOS ‘scalability compared to Ethereum contributed to much of the buzz generated around the project from the start of token sales in 2017 to its first launch in 2018. Currently, the maximum performance is achieved in EOS placed a short distance of 4,000 transactions per second.
There is therefore a high likelihood that Ethereum 2.0 will be able to compete with EOS when implementation is complete. However, this assumes that EOS maintains the same transaction speeds that it can currently handle. EOSIO’s strategic vision lists scalability as one of the platform’s priorities. It describes various methods that can be used to improve vertical and horizontal scalability and the parallel execution of smart contracts. Dan Larimer, CTO of the company behind EOS, Block.one, told Cointelegraph that EOS will continue to take the lead over Ethereum on that metric:
“EOSIO will continue to be the fastest option for ‘single shard’ applications as it is rooted at the architecture level, and the release of Ethereum 2.0 will see more applications on its platform but not the largest.”
Interestingly, communication between blockchain is also one of EOSIO’s priorities. Larimer made it clear that blockchain interoperability could be another area EOS could excel in, adding: “We are strongly promoting interoperability solutions such as our latest EOSIO Challenge winner eosio.evm, with which developers can continue to use and scale their old Ethereum smart contracts.“.
Beni Hakak, CEO of LiquidApps, who runs the DAPP network, told Cointelegraph that he believes that interoperability will lead to a future where both platforms will work in harmony for the benefit of developers:
“”The future is multi-chained and gives developers the ability to combine the benefits of multiple chains to optimize their dApps for performance and cost efficiency in the way that best suits their end users.“Developers can choose the base tier based on their specific use case, and interoperability gives them the freedom to migrate to another chain.”
Decentralization and security
It can be said that Ethereum is more decentralized than EOS. Currently, anyone with the right mining machine can join the Ethereum network and become a miner. In the first phase of the implementation of ETH 2.0, the switch will be made to proof-of-stake, with the minimum stake being set at 32 ETH. Anyone who can reach this barrier can join the network as a validator to compete for block rewards.
Strong interest in a stake led some analysts to suspect that prices could rise as large amounts of ETH are withdrawn from circulation. Whether in mining or in stakes, the decentralized network of Ethereum protects against attacks, as the costs of attacks on the network are almost prohibitive.
One of the biggest criticisms of the EOS so far has been its centralization, which is an essential part of the platform design. The delegated proof-of-stake consensus only allows a fixed number of 21 block producers, with token holders having the right to cast their votes who can participate as one of the groups.
However, the number of block producing nodes is not the most pressing problem. Allegations of lack of voter engagement, buying of votes and the concentration of tokens in the hands of a few powerful ones have raised concerns about the balance of power within EOS. Last year it became known that multiple block manufacturers may be operated by a single unit. In this regard If a powerful party becomes malicious, it can attack the EOS network.
However, Vitalik Buterin himself has previously shown his support for the EOS governance model, recognizing that while it is centralized, it avoids the problems that arise from decentralized blockchains.
The respective teams behind the development of EOS and Ethereum mirror how each platform works pretty well. The ETH 2.0 team is not a uniform, coherent unit. Rather, several teams are working on different iterations of the platform. Among them are well-known names in the blockchain community including Vitalik Buterin, Justin Drake, and Vlad Zamfir.
While EOS is open source, the company that originally built the platform, Block.one, continues to develop it today. Block.one is led by CEO Brendan Blumer and Daniel Larimer, the technical director of Block.one and the architect of the Delegated Proof-of-Stake Consensus and the Steem Blockchain.
Roadmap and notable developments
The biggest announcement made by EOS in recent months concerns the launch of its Voice social network. The company behind EOS, Block.one, previously committed $ 150 million to ensure the project could operate independently. In the meantime, most of the news about Ethereum continues to focus on the ETH 2.0 update. Although a schedule has not yet been set, the first phase is expected to take place this year. The last public test has already been confirmed for launch on August 4th.
Although EOS is touted as the other half of a “clash of the titans” with Ethereum, the two platforms continue to co-exist with no clear winner emerging. However, Ethereum 2.0’s promise of a huge improvement in performance makes it a more serious competitor to the EOS when it comes to scalability.
A more central EOS design, however, gives the platform an agility advantage over Ethereum. So, Chances are that EOS can improve scalability or interoperability before Ethereum 2.0 is fully implemented.
In both cases, there is no reason why the two platforms cannot be operated side by side in the future either, as the development of interoperability means that they may even work together in a previously impossible way. As Hakak from LiquidApps put it: “Each chain has a purpose and brings its own functionality and benefits to the table. We’re not far from a point where dApps would combine Ethereum and EOS technology without the end user exposed to the backend“.