Ethereum (ETH) is the second largest cryptocurrency and has a market capitalization of $49.8 billion according to CoinMarketCap. It is trading at $497 while its trading volume is $1.2 billion in the last 24 hours. EOS, on the other hand, is ranked the 5th digital asset in the market. It has a market capitalization of $9.2 billion and a trading volume of $466 million at the time of writing.
Both of the coins have experienced a drop in price since the spike that took place in December last year and part of January 2018. However, EOS more than Ethereum has demonstrated the ability to shake off the bear pressure and defy market trend to recover from the dip. EOS is one of the few digital assets that have broken their January all-time highs and set new ones. Ethereum on the other hand, has lost over 60% of its value from the highs traded in.
EOS is a protocol that has been developed in order to bring up a new ecosystem for decentralized applications. It is striving to have a more stable ecosystem in some ways many compare EOS to Ethereum. EOS utilizes the Proof-of-Stake consensus algorithm besides offering solutions to various blockchain related issues. It is developing an infrastructure that will achieve the highest scalability levels in the industry. EOS has recently launched its mainnet after a gruesome staking process in readiness for the voting of EOS 21 block producers.
The new EOS platform is definitely not the only competitor Ethereum has. There are numerous parties that have entered the market, some proving to be far much better than Ethereum while addressing different issues that Ethereum fails to achieve. In retrospect, the addition of EOSIO in the industry is going to revolutionize and bring solutions to vital issues that have not been solved by any of the current protocols. This is beside the significant issues that touch on scalability, speed of transactions, fees as well as flexibility. EOS has been said to be able to support over 100,000 transactions per second, which is a record high. It has also come up with ways to separate some decentralized application processes, for instance, authentication process has been detangled from the execution process.
Furthermore, EOS is revolutionizing the sensitive area of transactions in the industry. Bitcoin has some of the highest transaction fees, while other platforms offer different cheaper alternatives. EOS says that making transactions in the blockchain industry should be absolutely free and it has done this by integrating horizontal scalability.
Is Ethereum going to survive EOS entrance?
Many experts in the industry have said from time to time that the real Ethereum (ETH) “killer” will be EOS. Well, the time has caught up with us and EOS mainnet is finally live. Ethereum is the king of decentralized applications offering easy, simple and flexible solutions when launching tokens. Ethereum is, however, not done yet, it is working on becoming a lot more scalable through the implementation of plasma, and it is also going to switch to a Proof-of-stake protocol.
In retrospect, Ethereum has to make the above improvements in order to battle in equal capacity with EOS platform. For example the throughput for EOSIO is 6,000 verified transactions per second, while Ethereum, on one hand, is struggling due to the many dApps on its platform. Another vital issue is the fees, Ethereum transaction costs are carried by the users. On the other hand, EOS transaction costs are paid using inflation. The 1% inflation will be spread out to the block producers every year.
In conclusion, Ethereum (ETH) is a mature platform in the industry while EOS is relatively new. As much as EOS is just but at beginning its journey as a platform for decentralized applications, it has the potential to rise to and compete with Ethereum. Whether EOS will “kill” Ethereum, it is one of those issues we say “time will tell.”