Blockchain technology is set to change the world. It radically alters how we build applications online and makes it possible to applications previously not possible.
Ethereum, one of the most talked about blockchain platforms, is competing to become the next generation foundation for building applications. However, it is now under threat from what has been described as the Ethereum killer.
EOS, is the latest blockchain platform out of the blocks. It is causing a stir amongst blockchain experts, who are super excited by its potential. Analysts say it is will make other blockchain platforms obsolete.
Here are 5 reason why EOS will make Ethereum obsolete
EOS has superior technology compared to Ethereum
EOS was developed after the proliferation of multiple blockchain experiments like Ethereum. All of them attempt to lure in developers, enterprises and users to their platform. Unfortunately, the limits of their technology are a drag on what is possible.
Ethereum, suffers a limitation of transactional throughput. Because of a process known as serialization, transactions on it are limited to being processed sequentially. Therefore, all processes that go through its blockchain, cannot be processed simultaneously. Instead, they have to be processed in the order they are received relative to other transactions.
The EOS platform, recognized this limitation, and solved it by implementing asynchronous communication and parallel processing of transactions. This means multiple transactions running on EOS do not have to queue and wait their turn. Rather, they all get processed together, simultaneously on a distributed network. This is a remarkable feat in transactional capacity.
With this capability, EOS can handle more transactions, scale faster and to a wider audience than what is possible with Ethereum.
EOS can process more transactions per second than Ethereum
For blockchain platforms to become successful, they need to accommodate a ton of traffic on their network. The number of transactions a network can handle per second is a metric for comparing blockchain performance.
At its peak on June 11th, 2017, Ethereum experienced one of its highest traffic on the network. Unfortunately, even at its peak, it could only handle a throughput of 5.2 transactions per second. In the cryptocurrency world, this may seem impressive. However, for commercial grade applications, it is merely a drop in the bucket. With hundreds of banks, governments and major companies looking to build blockchain applications, much more is required.
EOS identified the folly of the current blockchain transaction capacity models. So they have implemented asynchronous communication and parallelization. With parallelization, multiple transactions are processed simultaneously, enabling horizontal scalability of the network. In addition, EOS has adopted Graphene technology, which has been proved to achieve 10,000 - 100,000 transactions per second.
Combining both technologies, EOS can achieve a modest 300,000 transactions per second. But, this is only the beginning. The road map is to scale to process 1 million transactions per second. EOS will support the bandwidth requirements of commercial and enterprise grade applications. For context, facebook and google handle about 52,000 and 40,000 transactions per second respectively.
Mass adoption of blockchains boils down to the scaling ability of platforms. EOS has scalability at the core of its design.
EOS has zero transactions fees while Ethereum’s fees are going higher
Blockchain networks typically consume resources for security and processing. The de facto approach has been to pay the owners of resources. Miners collect fees from users to keep the network running. This design however, is detrimental to lowering the barrier of adoption.
The Ethereum blockchain enables developers to build decentralized applications at no cost. The downside is users pay the price for consuming the network's resources. Users of Ethereum applications have to pay fees for every transaction processed by miners. Every storage operation, bandwidth use and calculation has to pay gas fees which is expressed in Ether. The amount of fees is calculated based on the complexity of the transaction.
If users do not pay enough fees, their transactions are excluded. It is worse because fees can change at any time and there is no way to predict in advance.
EOS was built from the ground up to do away with this insane model. To onboard users en mass, it needs to be cheap to use applications on platforms. For this reasons, transactions on EOS incur zero fees. This model eliminates the hassle of purchasing cryptocurrency to pay network fees. Additionally, developers also do not incur any cost to run applications on EOS. All they need, is to hold a certain number of EOS tokens that assures them a preset allocation of bandwidth.
EOS’s zero fee approach to onboarding users and developers on its platform is by far superior to Ethereum’s pay to use fee model.
EOS’s Daniel Larimer has more experience building blockchain versus Ethereum’s Vitalik Buterin
Blockchain’s are a relatively new technology, that combine decades worth of prior art. It takes years of experience programming in different fields and a big picture view of the future to build one.
Vitalik Buterin, was barely out of high school when he set out to build the Ethereum blockchain. He started out as a cryptocurrency writer for Bitcoin magazine and opted not to go to college. 14 months later, he joined teams working on digital assets protocols - Mastercoin and Coloured coins.
While on these projects, he witnessed first hand the limitation of protocols built on Bitcoin. So he conceived the idea of Ethereum, an independent blockchain in 2014, but lacked the developer skills to build it from scratch. He had to find other developers to help him make Ethereum a reality.
Dan Larimer on the other hand, graduated from Virginia Polytechnic Institute and State University in 2003 with a Bachelor of Engineering degree in Computer Science. He worked on various projects such as a virtual reality simulator and unmanned vehicle control systems.
In the early days, Dan worked closely with Satoshi Nakamoto refining bitcoin. He realized its shortcomings and moved on to build a high performance decentralized exchange known as BitShares. 2 years later, he built Steemit, a social media site powered by blockchain. Steemit is hailed as the most user friendly blockchain to date.
Dan’s ground breaking technology Graphene was used for both Bitshares and Steemit. Both combined have more blockchain transaction activity per day than Bitcoin and Ethereum. Bitshares processes between 600,000 - 700,000 transactions per day, while Steemit handles 120,000 transactions per day.
As the CTO of EOS, Dan has brought his experience, lessons and technology from previous projects. EOS combines all the great qualities of Bitshares and Steemit to come up with a superior blockchain platform.
Final Thought,
Developers, entrepreneurs, Banks, fortune 500 companies and governments have expressed interest in building blockchain applications. Current blockchain platforms such as Ethereum are limited in scalability, fees and throughput. They were not designed from the ground up with commercial applications in mind. Attempting to do the major changes necessary now is like trying to disassemble an engine while it is running
EOS is building a blockchain platform for scale, ease of use and millions of transactions per second. It is incorporating the lessons and failure of existing blockchain models. With an eye on the future of commercial adoption, EOS has a leg up on Ethereum, by building to remedy the failures.
It is why, EOS is the Ethereum killer and will make other blockchains obsolete.
