EOS collected its ribbon of glory as the 5th largest currency in the official ranking list more than several months ago when the crypto managed to push out Litecoin (LTC) down to the list from its long-held ranking spot, showcasing its dominance in the trading volume among the top 10 list.
Known as another self-proclaimed “Ethereum Killer”, NEO was originally launched as AntShares, soon rebranding to its current form, posing as a project focused on creating a blockchain based platform for decentralized applications.
Given the fact that Ethereum makes up for the top platforms for smart contract operations as well as the creation of decentralized applications, also carrying the title of the second-best currency on the official ranking list, it is considered that both, EOS and NEO are after achieving the same glory in the area of Dapp creation Ethereum still holds.
With ETH price touching a nine-month low with going below the price of 300$, it might be the case that a part of developers working on Dapps on this platform is looking for an alternative to Ethereum. Since NEO and EOS are represented as direct competition to ETH, which one of the two Dapp platforms comes as a better alternative and why?
EOS, NEO and Ethereum Comparison: Performance and Transactions
When it comes to performance, Ethereum might be known as the second-largest currency in accordance with the official ranking list, holding its spot ever since it was launched back in 2015, however, Ethereum can for now only process around 15 transactions per second, having an obvious issue with scalability.
Even though many people are using ETH for their transactions, at one point back when ETH was only started to get adopted, transactions could be made with 1 cent fees, while in 2017 the amount given in fees increased making the currency not as suitable for micropayments.
On the other hand, EOS, although a young project previously being hosted as an ERC-20 token on Ethereum layer, just like TRON (TRX) once was, is said to be able to process 1000 transactions as of July when the team got their mainnet, also planning on increasing the number of transactions in the period of one second.
NEO beats both currencies when it comes to transaction speed, as its blockchain is able to process around 10,000 transactions per second, obviously away from having issues with scalability, which means that NEO might be the fastest alternative when it comes to transacting.
As far as the transaction fees concerned, EOS demands no fees for sending and receiving payments within the network, making transacting with ETH more expensive than making payments with NEO or ETH.
However, when sending NEO, which represents an undividable currency, you can only send whole numbers, while you can send any amount of ETH you like.
EOS, NEO and Ethereum Comparison: Technology and Operations
What makes these platforms highly comparable although all three have different technologies in the core is the fact that all three projects are aiming at taking the place of the best platform for decentralized application development.
While Ethereum introduced the revolutionary term of smart contract technology to the crypto community and having the team planning on changing the consensus mechanism in order to solve scalability issues and enable thousands of transactions being processed in a second.
The technology mirrored in consensus mechanism is different at all three projects. That is how Ethereum uses the “notorious” Proof of Work, which is said to be the main reason why ETH network lacks scalability, but the team behind Ethereum is also planning on switching to Proof of Stake while implementing Zilliqa’s (ZIL) Sharding technology, as well as Plasma technology that Vitalik Buterin has previously announced.
Ethereum will thus be seeking for an increased scalability, hopefully enabling thousands of transactions.
In the meanwhile, NEO has a delegated Byzantine Fault Tolerant mechanism, representing a modified Proof of Stake, which is the precise thing that makes NEO more scalable than Ethereum at this point.
EOS also advocates scalability with delegated Proof of Stake made by the founder of EOS and Bit Shares, Dan Larimer, making it faster than ETH, also having 21 Block Producers instead of miners who are looking after the security of the network.
However, once again, NEO makes up for the promptest performer in this group when it comes to comparing the three consensus mechanisms.
EOS, NEO, and Ethereum in the Market
At the moment, ETH is still holding the 2nd spot on the official ranking list, followed by EOS which showed an amazing pace of growth during the last couple of months while climbing to the spot number 5.
NEO, with a market cap of around 1.4 billion dollars is currently taking the 15th spot. This case shows that Ethereum is still, despite the fact that the network still has a lot of work to do regarding the scalability, the most commonly used Dapp platform.
However, EOS and NEO are posing a “threat” to the status of the largest Dapp platform with offering low to no-fees aside from enabling faster transactions and highly scalable blockchain based environments, which makes the race tight despite the current market rankings.