Introduction to the technology of EOS
EOS is a blockchain based module that is designed to be a decentralized operating system. What makes the project different from other blockchain technologies, is its ‘will’ to allow its users to build industrial-scale applications by eradicating transactional fees and increasing its TPS [Transaction per second].
EOS uses delegated Proof-of-Stake [PoS] as well as consensus mechanism to scale their network. The methodology of scaling makes transactions faster while it also speeds-up the block creation without putting the ‘decentralized incentivization’ strategy at stake. In simple words, EOS uses PoS and consensus technique to speed up the transactions, as well as to increase blocks easily without compromising the incentives for its nodes. The consensus mechanism plays a fundamental role in the technology, it uses 21 block producers [nodes] in its model rather than multiple miners in a Proof-of-work [PoW] system
According to the whitepaper of EOS:
“The direct users of a blockchain such as EOS are the entrepreneurs and developers who write contracts to implement distributed applications or DApps. Their users are the routine customers in retail, finance, logistics, media. Those latter customers do not need to know what a blockchain is.”
Further, the whitepaper explains that the end goal is to give developers a platform that allows extensive business to be built through mechanisms of communications that are decentralized thus hidden. The dApp developer is given a fully capable account, permissions and messaging platform to express the system. The UI [user interface] sets a similar path for the user as they are familiar with the usage of platforms to build dApps and get access to the blockchain. This approach is expressed as “an operating system for blockchain.”
The smart contract platform competes with Ethereum [ETH] with its full stack, no transaction fee, higher scalability, and seamless usage features.
Comparative features of EOS and Ethereum
Proof of Work vs Proof of Stake
Ethereum sets its principles on PoW [Proof of work] consensus model, while EOS uses PoS. Ethereum has the perk of being one of the very first developers of its current model, the project stands 2nd in the cryptocurrency market after Bitcoin [BTC] and is known for its features of smart contract and decentralized applications [dApps].
TPS [Transaction per second]
Ethereum’s project has a high transactional fee and lacks scalability which makes its TPS only 15 while, as per records, EOS completes 5000 transactions in a second. Ethereum’s model although has many critiques and drawbacks, has been used by various developers to build dApps through its platform.
The uses cases for EOS and Ethereum is as similar as it can be, as both use smart contract to build dApps. EOS operates as a smart contract platform for the building of dApps and a decentralized autonomous corporation. On the other hand, Ethereum uses its EVM [Ethereum Virtual Machine] and smart contracts to deploy dApps.
Difference between EOS and Ethereum:
Disclaimer note: This article is not an advice for any sort of financial investments.
A deep dive into EOS and how it compares to Ethereum was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.