The inner universe of the blockchain world is a very deep, complex, and messy web. Although one might expect this from such a young technology that's changing the world as we know it. From an outsider's perspective, it's fairly easy to just look through a narrow purview and see the radiating glow of Bitcoin's golden luster. But as we'll learn in our EOS vs Ethereum comparison, the technology behind blockchain plays a much more significant role than what meets the eye.
Blockchain could very well upend how information – and there's certainly a lot of those going around nowadays – is molded, secured, and passed around. It's a second tectonic shift with the same loud thump as the day the World Wide Web went online for the first time. This is what both Ethereum and EOS promise to bring; two decentralized blockchains that are immensely versatile, powerful, programmable, and accessible that can be used in a wide range of applications.
So, while people might clamor to own Bitcoin, blockchains like EOS and Ethereum are doing the heavy lifting to help advance decentralization. Both offer their users the ability to build decentralized applications (dApps) that offer services from banking to gaming, along with the efficiency and seamlessness of smart contracts. But can EOS overthrow the old guard with its promises to solve Ethereum's limitations?
Well, read along our EOS vs Ethereum guide to learn more.
EOS vs Ethereum Comparison Table
|Ranking: 2||Ranking: 62|
|Network Fees: Moderate to High||Network Fees: Low|
|Market Capitalization: $223,753,867,754||Market Capitalization: $4,600,332,870|
|Circulating Token Supply: 115,289,347 ETH||Circulating Token Supply: 1,028,327,981 EOS|
|Ease-of-Use: Easy||Ease-of-Use: Easy|
EOS vs Ethereum – Main Differences
Both EOS and Ethereum are highly modular blockchain protocols that could be programmed into any kind of situation, primarily bringing with them the ability to run high-performance smart-contracts execution and the ability for developers to create decentralized applications (dApps). Although, there are some distinguishing differences between them. Primarily, Ethereum has been around a bit longer and is the de facto leader when it comes to blockchain adoption and usage.
There are many other blockchain protocols out there, as well as decentralized services, platforms, and networks that were created on Ethereum. Therefore, they are also issuing and circulation Ethereum-powered cryptocurrencies and technologies. This has allowed Ethereum to expand greatly into other new and emerging sectors within the blockchain space, such as offering banking services through DeFi, the rise and popularity of NFTs, blockchain-based gaming, and more.
Meanwhile, EOS is much younger and has a lot more to catch up on, despite offering a similar breadth of ability. However, EOS as a blockchain can solve and break above some of Ethereum's current – as of writing this EOS vs Ethereum comparison, anyway – flaws, such as heavy network congestion, which also leads to skyrocketing and volatile fees across the network, as well as the debate around Ethereum's energy consumption and its subsequent carbon footprint.
What Is EOS?
EOS is a smart-contracts and dApps-focused blockchain protocol, being designed with the primary goal of building a new blockchain ecosystem to help achieve mass-market use and mainstream adoption. With this in mind, EOS is targeting several key areas to work on that have become a challenge for some other leading blockchains that are being widely integrated today.
This includes creating a blockchain that is incredibly easy to develop with and deploy, is infinitely scalable to meet future network growth, and increasing demand for high-performance or mission-critical applications while also being user-friendly. Aside from being designed for use in more mainstream circles, EOS's blockchain was also programmed to be incredibly robust and secure that it can be used comfortably in an enterprise environment.
Following the release of EOS's whitepaper in 2017, EOS then held what still is the world's largest initial coin offering (ICO). It raised more than $4-billion from the public sale of 900,000,000 EOS cryptocurrency tokens. EOS is continually being developed by blockchain solutions provider Block. one. They are the ones behind brands such as Voice, which is social networking, micro-blogging, and content creation platform where you can earn cryptocurrencies for engagement.
What Are EOS's Unique Features?
One thing we'll learn more about later on in our EOS vs Ethereum battle is that EOS's blockchain brings to the table a lot of similarities in its ambitions with Ethereum. At its core, EOS is a blockchain protocol that can be designed and re-programmed to fit any scenario. This is in contrast to some other blockchains that have been designed from the ground up primarily for one or a few specific uses, target audience, or sectors, such as being used only for creating NFTs or for DeFi.
By looking through sites such as DappRadar, we can see that EOS has been the underpinnings for a large variety of unique dApps (although far behind that of Ethereum), from those running DeFi services, games, or even gambling platforms. Popular platforms running on EOS include Everipedia, as a claimed censorship-resistant and community-centric alternative to Wikipedia. Funnily enough, the aforementioned Voice social-networking service isn't running on EOS, but a specialized EOS.IO-built blockchain.
At this stage in our EOS vs Ethereum comparison, it should be worth explaining the differences in terminology. EOS.IO (or sometimes stylized as “EOSIO“) is a creator of blockchain-based technologies and software that it provides to other companies. It's from the technology that was research and built by EOS.IO that we have the EOS blockchain. That's the subject of what we're discussing today…
Immensely Scalable for High-Performance Blockchain Computing
For a start in understanding the differences between EOS vs Ethereum, the former of the two wants to try and solve the most pressing and pertinent problem with the latter – scalability. Compared to Ethereum's paltry 15 TPS (transactions-per-second) computational average – with around 30 TPS on a perfect day – EOS can claim a TPS performance in the thousands. It can normally process at least 1,000 TPS and has broken records before reaching nearly 10,000 TPS.
Even at its current iteration – as of writing this EOS vs Ethereum comparison – EOS can reach 50,000 TPS under optimized conditions. With future updates to further optimize its networking speeds, EOS wants to be able to perform “millions” of transactions per second. This will no doubt help both EOS and blockchains, in general, to gain more traction in the real world, where current blockchains have yet to scale close enough to meet the demands of many platforms that have high computing needs.
A Highly Configurable Blockchain to Suit any Environment
One downside of EOS's high-speed design is that its governance structure is more centralized compared to some other Delegated Proof-of-Stake (PoS) blockchains or Ethereum. As of this EOS vs Ethereum guide, there are only 21 block producers that ultimately have control over the EOS chain. However, the upside – apart from performance – is that EOS's blockchain is easily configurable and incredibly modular, just like Ethereum.
EOS can be deployed as a privately-run permissioned blockchain for enterprise or institutional use, or it can be programmed as a publicly available permission-less protocol. EOS is, therefore, a very business-friendly blockchain, thanks in part to its commitment to creating a highly secure network as well as guarantee maximal robustness away from any downtime. This is helped by EOS providing a large number of services for businesses wanting to integrate EOS's blockchain tech.
It includes a dedicated technical support team, as well as a consultation service to aid companies in building tools and intra-corporate applications or smart contracts powered by EOS. They offer a more flexible blockchain-as-a-service (BaaS) service for the enterprise, as well. With this, companies can reduce the complexity, cost, and resources needed to natively deploy the EOS blockchain while allowing EOS's team to help run and optimize the network to best suit an enterprise's needs.
Easy to Program and Develop With
But EOS isn't just focused on the big corporations, as it also wants to bring the power of its high-performance blockchain to the masses. EOS.IO makes its software and the EOS blockchain to be friendlier to developers, as it offers a wide range of natively integrated SDKs and additional tools or guides for developers to build new or port existing dApps or smart-contracts computation to the EOS blockchain. They even have free training courses and programs for any aspiring developer.
One advantage of a technical aspect compared to Ethereum is that EOS can run smart contracts and power decentralized applications using mainstream coding languages, such as C++. This way, developers won't need to spend time and effort learning a brand new programming architecture just to build a simple dApp. Meanwhile, Ethereum's Solidity language has a fairly high learning curve, albeit it's very powerful when deployed properly after some training and experience.
What Are EOS's Cryptocurrency Tokens?
The native cryptocurrency token of the EOS ecosystem is its namesake EOS. Just like Ethereum's Ether and many other cryptocurrencies, EOS tokens could simply be used as a store of value or as an appreciative asset. But within the EOS blockchain, EOS cryptocurrencies – as with Ether – play a crucial role as a utility token. It is used by network participants to pay for network resources on EOS, just as how you'll need to pay for gas fees on Ethereum.
On EOS, there are three distinct network resources that you'll need to pay for:
- CPU – Processing power that is needed for the EOS blockchain to power and executes certain actions, such as operating a decentralized application or running a smart contract.
- NET – This is the network bandwidth of the EOS blockchain, and it represents how much data you need for processing a particular transaction.
- RAM – Quite simply, this relates to how much data on the EOS blockchain that you're using and taking up; or in other words, storage capacity.
Users or developers would thus need to purchase and stake EOS cryptocurrency tokens to be able to purchase or rent these network resources – either computational, bandwidth, or storage, or all three at a time – that is related to a certain transaction. Alternatively, users could also lease unused network resources to other users in return for earning additional EOS tokens.
How Are the Tokenomics Like With EOS Tokens?
As with Ethereum, EOS tokens do not have a set supply cap. Instead, it follows along with a set inflation rate of 1% every year to help improve the liquidity of the network. At the time of writing, there is a total supply of 1,028,327,981 EOS cryptocurrency tokens on the market. Although it has fallen far from its all-time highs above $20 in mid-2018, EOS is steadily creeping upwards in the past few months.
While writing this EOS vs Ethereum comparison, the price of one EOS is $4.83. It has been gaining some momentum as more developers and users are fleeing Ethereum and flocking towards more scalable alternatives to Ethereum, and those will have more reasonable fees. However, EOS is also undergoing a lot of competition from other popular blockchains, such as Binance Smart Chain. Currently, EOS is the 26th-most valuable cryptocurrency, with a market capitalization value of $4,600,332,870.
What Are EOS's Future Roadmap Updates?
As we were writing this EOS vs Ethereum guide, we've not found a set roadmap update or timeline by EOS's developers or by EOS.IO. For the time being, they are currently active at bringing incremental updates and quality-of-life improvements to their blockchain. Meanwhile, EOS.IO and Block.one are also busy attracting and investing in potential partners through the EOS VC fund to help bring EOS's blockchain technology to the forefront of mainstream attention and adoption.
Other than that, another key milestone to break through in its immediate future is the major EOS 2.1 network upgrade. The team over at EOS.IO reportedly took a lot of feedback from the development process of Voice, and ironing out some rough patches, and introducing new improvements to the EOS blockchain, both for private and public applications. This includes new efficiencies, such as making it easier to sort through and find data stored on the chain.
The performance will be improved thanks to new on-chain storage changes, as well as the arrival of the Nodeos ‘failover solution', which brings new data recovery and backup functionality to the EOS blockchain while also enhancing its resiliency against service disruptions. A welcomed update for the enterprise sector is the ability to remove or modify certain data on the blockchain, which may help with privacy, security, or maintain regulatory compliance.
EOS – Review
In the concluding first half of our EOS vs Ethereum comparison, we can certainly see why there's a lot of hype surrounding EOS and why a lot of people poured in over $4-billion into an ICO for a product or service that they never saw firsthand. No doubt, EOS still has a lot of ground to cover against Ethereum, which is seeing billions of dollars worth of value and countless millions of transactions running through their blockchain.
However, there's a lot of promise with what they have to offer right now. As a public blockchain, they might not have as much traction. But where EOS truly shines is in their adoption amidst the more corporate suite, where enterprises cannot afford any mistakes, failures, or slowness in their ginormous IT complexes. For those businesses wanting to transform their 1s and 0s for a new age, then EOS sounds like the perfect blockchain.
What Is Ethereum?
The Ethereum blockchain has been regarded as “the world's computer” since its founding in 2013, to bring to the blockchain space just as how Apple pioneered and popularised the idea of the smartphone. In that regard, EOS is made for a similar purpose as with Ethereum. Aside from Bitcoin – owing to its highly speculative and appreciative nature – Ethereum is the most popular blockchain ecosystem as far as pure usage and adoption go.
Many other centralized and decentralized protocols have been built on Ethereum, and we have seen a lot of growth from the blockchain space that is, in fact, catapulted forwards by Ethereum-powered protocols. Among those sectors that are dominated by Ethereum, we have seen the continued madness surrounding non-fungible tokens (NFTs), the offer of a fair and accessible world of banking services made possible by decentralized finance (DeFi) platforms, and more.
What Are Ethereum's Unique Features?
Ethereum is claimed to be the world's first second-generation blockchain back in the early days of its launch, which came with it the ability to create decentralized applications (dApps) and the advent of smart contracts. As with the younger EOS, Ethereum is thus able to be programmed and adapted in a large number of different applications. Arguably, it's more versatile, thanks in no small part due to Ethereum's pioneering contributions to the wider blockchain universe.
As such, many decentralized networks and protocols today are inclined to keep using Ethereum, as it offers a greater breadth of ability, which has been refined and optimized continually over the years. This is despite the fact that Ethereum – in its current state as of this EOS vs Ethereum comparison review – is continually suffering from heavy network congestion. Still, there's a lot of hope for the continued growth of Ethereum, thanks to its many special features…
A Very Expansive and All-Encompassing Monetary System
Perhaps the best feature which has caught a lot of attention towards Ethereum's blockchain is its on-chain economics and how developers can leverage that for whatever dApp they might want to create. Ethereum's expansive natively-built monetary structure has allowed for the many protocols built on Ethereum to have their own special home-grown cryptocurrencies. To ensure greater optimization of this, Ethereum created its own token standardization system.
The most widely used token standard is ERC-20. This is the prime choice for a lot of applications built on Ethereum, and a significant chunk of ICOs (initial coin offerings) that were offered to date are built as ERC-20 tokens. ERC-20-designed cryptocurrencies are either used as a utility token for on-chain functionality or as a governance token. The continued rise of tokenized digital assets in the form of NFTs has also meant that Ethereum needed to make tokens for those, too.
More popularly, NFTs are minted as ERC-721 or ERC-1155 tokens. The latter of the two also allows for fungible and semi-fungible tokenization. Other types of tokens include ERC-223, ERC-777, ERC-1337, and more. This is a big reason why many developers choose to park their projects on Ethereum, as they can easily issue cryptocurrencies and build an economy around that, as Ethereum also continually works to improve and add new standards.
The Powering of Decentralized Finance (DeFi).
Relative to EOS, Ethereum is leaps and bounds ahead as the foremost popular foundation for many decentralized finances(DeFi) services and platforms, leveraging Ethereum's dApp creation tools and smart contracts execution. Pretty much all of the senior and leading DeFi projects – which at the time of writing this EOS vs Ethereum comparison, has more than $43-billion in total value locked (TVL) – are all built on Ethereum, thanks once again to its modularity in being highly programmable and adaptable for any function.
Ethereum is, therefore, the bedrock for DeFi platforms offering a huge number of financial and banking-like services across a large number of sectors, including exchanges or decentralized exchanges (DEX), derivatives trading, lending and borrowing, token swaps, prediction markets, investment, and hedging applications, wealth and asset management, crowdfunding, payments solutions, synthetic assets creation, options trading, and a lot more.
The ultimate goal of decentralized finance is to provide fair, equitable, efficient, secure, affordable, and transparent access to financial services for everyone as an alternative to traditional banking. Another example of how impressive Ethereum's blockchain has been for its monetary and financial infrastructure in relation to many other chains, including EOS, is how it is also the primary blockchain provider for many popular stablecoins in use today.
Minting New Non-Fungible Tokens and Creating Blockchain-Based Gaming Experiences
Another popular adaptation of Ethereum's blockchain is for the issuance of non-fungible tokens or NFTs. The tokenization of virtual (and sometimes real-world) goods is quickly becoming a growing phenomenon, where creators and users can exchange virtual items that have immutability – in other words, cannot be changed – with verifiable proof of authenticity. An added benefit is that NFTs allow for digital-native assets to have real-world tangible value.
NFTs can include trading cards, rare collectibles, artwork, merchandise, music, writings, memorabilia, fashion, in-game items, as well as anything else that can be “minted” onto the Ethereum blockchain. EOS has yet to move significantly into this sector, although Ethereum has come under competition from other NFT-focused blockchains such as WAX. Still, Ethereum remains the leader in this space, with NFTs on some Ethereum-powered marketplaces selling for tens of millions apiece.
Another extension of Ethereum's reach beyond NFTs is the advent of blockchain-based gaming. Ethereum's ecosystem has allowed game studios to create new wholly decentralized gaming experiences for their players, which also introduces new mechanics such as provably fair random number generator (RNG). NFTs have also been integrated to enhance and bring better value to those in-game economics, with items and inventories that can bring value to the player in the physical dimension.
What Are Ethereum's Cryptocurrency Tokens?
Ethereum's native cryptocurrency within its blockchain space is Ether (ETH). As Ethereum has a large network of dApps, Ether has become a popular medium for payments or transactions within those dApps, such as buying an NFT art piece or using ETH as collateral on a DeFi lending platform. Otherwise, Ethereum's Ether works just like EOS tokens in that it is used to pay for network resources, done in a much more simplified manner in the form of “gas.”
Ether is spent on gas fees, which are the transactional costs incurred for every action done on its blockchain, like “minting” a new NFT or processing trades done on an Ethereum-powered decentralized exchange (DEX). As we talked about earlier in our EOS vs Ethereum head-to-head comparison, Ethereum doesn't have a capped total supply. As a Proof-of-Work (PoW) blockchain, Ethereum has a fixed emissions rate for its block rewards that are mined.
Thanks to how integral Ethereum is to the rest of the blockchain industry, their native Ether tokens have seen massive gains lately. At the time of writing this EOS vs Ethereum review, one Ether is worth $1,940.80. With 115,289,347 ETH in circulation today, this gives Ethereum's Ether a market capitalization value of $223,753,867,754, which also makes it the 2nd-most valuable cryptocurrency, just below that of Bitcoin's BTC.
What Are Ethereum's Future Roadmap Updates?
The most anticipated update is the oncoming Ethereum 2.0 – or ETH2.0 – upgrade. This should bring changes in solving many of the problems with the Ethereum blockchain today. The ETH2.0 update will help to prepare Ethereum for increased adoption among the traditional industries and mainstream services that require consistently high computational speeds. This should also give more headroom for current applications on Ethereum more room to grow.
Right now, there's still a lot of bandwidth traffic on Ethereum's blockchain, which has led to long processing times and ridiculously high fees – especially compared to more scalable chains like EOS. A current temporary stop-gap measure while ETH2.0 is being finalized is the introduction of the EIP-1559 update to Ethereum. This will change the fee structure and will burn Ether tokens used for paying gas fees, which not only makes fees cheaper to pay but might also result in an appreciation of Ether in the long term.
For ETH2.0, however, there will be improvements made to the sharding mechanism of Ethereum's blockchain. This divides data being transacted within the chain into smaller batches, which would result in making transactions more efficient and optimized for a wider subset of applications, especially those that require a massive influx and outflow of information. Ethereum will also transition towards a Proof-of-Stake (PoS) consensus algorithm.
This will enable the powering of the Ethereum blockchain to be much less complex, more cost-effective, and far more energy-efficient (and thus more environmentally sustainable). That last point is important, as Ethereum has attracted a lot of criticism over how much energy its PoW blockchain is using just for simple transactions. ETH2.0 will also have significant impacts on the future scalability of Ethereum with better throughput speeds, with the potential for processing upwards of 100,000 TPS.
Ethereum – Review
As we end the second half of our EOS vs Ethereum review, we can begin to understand why Ethereum has maintained such a dominant position as far as anything related to blockchain goes. They have a massive reach into every possible part of our decentralized lives, from tokenizing digital pixel-art, creating a new virtual world for gamers, opening up new avenues for accessing financial products and services, and more.
They certainly do live up to their claim of being “the world's computer”, with an incredibly versatile blockchain ecosystem that can retro-fitted into anything the heart desires. Improved and refined over the years, Ethereum can be considered a laggard compared to some other blockchains that are continually innovating in newer spaces. But remember that where we are now, we can owe that growth to Ethereum.
EOS vs Ethereum – Final Conclusion
Right… The moment you're all waiting for in our EOS vs Ethereum comparison has finally come; which one comes out on top? Would it be the old heavyweight juggernaut, Ethereum? Or, might it be the plucky youngster, EOS? Given how much they share in common, as well as the myriad of added upsides and special features that they each offer, it's not that easy to call a winner. But for this head-to-head deathmatch, we're proclaiming Ethereum as our crowning champion.
They deserve this place for a reason, as a lot of blockchain's growth in recent years that we can be thankful for has had Ethereum playing a pivotal role. There's a strong likelihood that many of your favorite dApps are probably powered by Ethereum's blockchain. Despite the many challenges that lay ahead, as well as heavy competition from its rivals, we believe Ethereum is still the king of the blockchains, and for a good reason.
Albeit, EOS isn't too far behind at all. While Ethereum buckles under heavy load and is slowly lumbering along, EOS is throwing punches left and right. They are actively working to raise the threshold and push the boundaries of what blockchains can do as we move further towards adoption en masse. Either way, our EOS vs Ethereum review does prove one thing, is that blockchains can make anything possible.