EOS is one of the top three competitors of Ethereum. It is also the largest ICO that was ever carried out on Ethereum and was able to raise a whopping amount of $4 billion. EOS at times is also referred to as ‘Ethereum on Steroids’ as 1000s of transactions per second are possible on it. The mainnet of EOS was launched on 2nd June 2018, and the Ethereum-based ERC-20 token was swapped for their token on the EOS blockchain. 

The idea behind the concept of smart contracts has been leveraged by EOS from Ethereum (ETH). EOS has incorporated the same smart contract environment like Ethereum, with the difference being that it is based on the programming language C++, which is less human-friendly. The only scenario that is required to be emphasized here is that user-friendly products can attain mainstream adoption.     

Smart contracts on the EOS blockchain can also be used to develop decentralized applications (dApps). Thus, when talking about use cases of dApps, it can be said EOS offers a viable alternative to Ethereum. 

Even the consensus mechanism utilized in the EOS blockchain is delegated proof-of-stake (DPOS). In DPOS the simple logic of one token being equal to one vote is implied, and with an increase in the number of tokens the influence of a user on the network also increases. For the validation of the blocks, 21 block producers are appointed, who are also entitled to the responsibility of keeping the network secure. The 21 block producers are awarded newly minted EOS tokens in exchange for their services. Though this election of 21 block producers in the EOS ecosystem has raised many questions about the decentralization of the network, by many Ethereum enthusiasts. 

Unlike the ETH ecosystem, the EOS ecosystem doesn’t support ICOs, but only knows Airdrops. In Airdrops, a funding round can be carried out by initially distributing tokens for free and then buy reselling the retained token in the market, where the price of the token is determined by the supply and demand. However, as simple as it seems, the process is not so straightforward and involves a lot of potential legal risks, especially related to airdropping of security tokens. Funds can also be raised from the venture capital firm Block. one ( a firm based in Hong Kong and is run by venture capitalists who are highly experienced), that carries out strategic investment in various blockchain projects of EOS. 

Thus, it can be said that ETH and EOS are complimentary ecosystems, which require to be developed further so that they can achieve their respective objectives.      

Disclaimer: The article should not be considered as any financial advice. It is advisable to conduct thorough research before investing.

Photo by – geralt on Pixabay