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Blockchain Technologies Review: Eos Vs Ethereum

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EOS Ethereum was a very successful blockchain because it opened up wider use cases for the blockchain technology. Before Ethereum came into existence, no one had even thought of running apps in a decentralized manner on the blockchain. With Bitcoin, you could only do a financial transaction. However, with Ethereum, you can not only do financial transactions but can also do a lot more like settling disputes using smart contracts or even run an app on the blockchain.

All this was made possible on the Ethereum blockchain due to a technology called the Ethereum Virtual Machine or EVM in short. The computational power required to run the apps on the network was drawn from the users who power up the EVM. Thus, it simulated a decentralized cloud computing software. Since this technology was still very new, not many people knew about it. Consequently, there were not many highly used apps to really test the capabilities of the network.

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In 2017, a DApp called crypto kitties was released on the Ethereum blockchain. This was the first game Dapp to be released on the network. As a result, many people were hooked on to it instantly. Due to this high usage, the number of transaction increased drastically and eventually clogged the Ethereum blockchain. All transactions on the network were extremely slow and even costed a huge miner fee. Thus, proved that the world was still not ready for running Dapps. This scaling problem in the current blockchain technologies needed to be fixed quickly in order to have hopes of going mainstream. Hence, to solve the scaling issue, EOS project was eventually introduced.

Introduction

EOS was one of the biggest ICOs to have ever taken place back in the day. This was due to the fact that many people had identified the problem in the current blockchains and were looking at other projects to fix the issue. When the EOS ICO was announced, it proposed to solve the scaling issue that has plagued all the current blockchains. Hence, it received an enormous support from the community even before the actual solution was out.

EOS employes several techniques to increase the transaction speed and at the same time reduce the transaction costs close to zero. This motto of the project appealed to many people. The EOS project is being developed by a company called block.one. However, it doesn’t mean that it is centralized. Block.one will not have any control over the EOS network once it is released to the general public. EOS specifically wanted to solve the congestion issue in the Ethereum blockchain. Hence, EOS also supports smart contracts and the ability to run Dapps on its network. The technology used for the development of the EOS blockchain is completely different from the existing blockchains. Let’s have a look at what happens under the hood of this network.

Technology and features

What makes the technology behind EOS very unique is that it uses a new form of Proof of Stake consensus called the Delegated Proof of Stake algorithm. In the Delegated Proof of Stake consensus method, every single token holder as a say in how the blockchain operates. This is not the case in the usual Proof of Stake method where you need to have a certain amount of tokens in order to qualify to be a validator. A validator is a person who validates the transactions on the network.

In the EOS blockchain, there are a total of 21 validators. These are chosen by continuous voting by all the token holders. The EOS network has a total of 126 blocks on a daily basis. This is divided into 6 blocks for each validator. If a validator fails to do his duty correctly and continuously misses a block, then he will be voted out as a validator and a new validator will be appointed. Even if a validator approves an invalid transaction, he will be voted out as a validator. Another advantage of the EOS blockchain is that hard forks on the network are not possible. This is because, whenever a split in the chain happens, the longest chain will be selected as the main chain. Since the forked chain does not have many validators, the rate of transactions also decreases and hence the forked chain will be ultimately ignored.

The confirmation rate on the EOS blockchain is unmatched. Typically, a transaction is 99.99% confirmed within the 0.25 second from the broadcast of the transaction. With the inclusion of Byzantine fault tolerance, a transaction is deemed irreversible after 1 second from the time of broadcast. In Byzantine fault tolerance system once 15 producers sign a block it is deemed irreversible. Usually, this happens in 1 second. In order to prove treason by the 15 produces(if there is one) another producer should sign two blocks with the same timestamp. As a transaction is irreversible after 1 second, the producer has very less time to do so.

The EOS network also supports named permission levels. This means that there are multiple keys, each with a different level of access. There might be a key for guest usage, another key for friend usage and another on for master access usage. An example of the named permission levels is the steem blockchain. On the Steem blockchain, you have different keys for posting, active and master access. EOS is one of the few blockchains where you can recover your account even after it is stolen. To do this you would need to enter one of your keys that was active in the last 30 days. Then with the help of your accountability partner, you can recover your account easily. The EOS blockchain also uses the deterministic parallel execution of apps. In this method, apps are run in parallel. The output of one app acts as an input for the other.

The output of the first app is not immediately delivered to the next app because it is still computing its previous action. Hence, running apps parallelly is highly efficient. In order to speed up the transaction, the EOS blockchain uses several techniques. Parallel execution is one of them. Another technique to reduce the load on the blockchain is called sharding. In this technique, each block is broken down into cycles. Each cycle is further broken down into shards. Each shard contains a set of transactions that are verified parallelly. Thus, the overall confirmation time required reduces drastically. In this method, the information from one cycle can be transferred to the next cycle or block easily. Thus, reducing the overall latency of the network as well.

An atomic transaction is another feature the many blockchains are trying to bring forth. EOS blockchain supports the atomic transaction with multiple accounts. This means that several transactions can be included in a single transaction and can be delivered to more than one account. In order to increase the efficiency, the EOS network also supports partial evaluation of blockchain state. Take for example an Exchange platform developed on the EOS blockchain. The developer of this exchange needs to run a full node EOS wallet. However, there is no need for this developer to know the state of a social network platform built on the EOS network. Eos supports this with its partial evaluation of blockchain feature.

A context-free transaction always depends on the transaction data and not on the blockchain state. Signature verification, on the other hand, requires both transaction data and a signature in order to determine the public key. This kind of transaction is extremely computationally intensive. Hence, the EOS blockchain uses a technique called context-free actions to solve this problem. In this technique, computationally intensive transaction are verified parallelly. Therefore, the network does not slow down due to such transactions.

Use-cases

With so many different features and great advancement of technology, the EOS blockchain offers a wide range of use-cases. Being able to replicate everything an Ethereum blockchain can do as well as competing with mainstream technology, EOS is truly a blockchain with high potential. The number of use cases is truly enormous.

Mainstream usage: All the existing blockchain technologies are truly amazing and offer a lot of features. However, all of them are plagued with the scalability issue and none of the existing blockchain technologies can compete and dethrone the existing centralized solutions. However, EOS brings a glimpse of hope for us all. Due to its extremely high transaction speed, it can easily be competing against centralized web apps such as Facebook. Facebook can handle around 55,000 thousand transactions every minute. EOS is the only blockchain technology that has the potential to even come close to this number.

For the general public to make transactions: In order for a technology to be widely used, it should be capable of handling so many transactions. The existing blockchain projects can do this but at the cost of a higher transaction fee. EOS, on the other hand, can achieve high transaction speeds through sharding and the close to zero transaction fee means that microtransactions i.e. transactions to by any grocery or chocolate at a merchant store will no longer incur a large transaction fee anymore. This is exactly what is needed for the mass adoption. Who would want to pay a $3 fee for a 1$ chocolate right?

Smart contracts and Dapps: Smart contracts and Dapps are definitely the best alternatives for the centralized counterparts. This is mainly due to the fact that they are incorruptible and does not cost you as much as what the centralized solution would cost. Dapps also inherit the security feature of the blockchain and won’t have a fixed weak point. Ethereum is the blockchain people look at to deal with Dapps and smart contracts. However, from time to time, this has proven to be a very bad idea. Mainly because the Ethereum network is usually clogged with a lot of transaction and it also costs a lot more to do any transaction on the Ethereum network which is not suitable for frequent transactions made by the apps. Thus, EOS offers the best solution to this problem with fast and close to zero transaction fee.

Recovery of stolen keys: In all the existing blockchains, once your private key is stolen, there is nothing you can do to get back your account. This is not the case with the EO blockchain. You will be able to recover your account even after your key has been stolen by using a key that was active in the last 30 days with the help of your account creator agent.

The adaptive feature of the EOS blockchain enables it to adapt to the current state of the blockchain. Whenever more transactions are being made, the blockchain adapts by producing more shards to solve the transactions in a parallel manner. This means that EOS is a blockchain that can handle a huge volume of transactions without faltering like the Ethereum blockchain.

Roadmap

EOS was one of the very first ICOs to have been very successful during their token sale. The main reason for this success is because of the strong belief in the project. The team behind EOS platform have not failed to deliver either. From the initial ICO stages, they have kept up their word by hitting each and every deadline. So far they have developed API’s for Dapp support, support development languages and have even implemented the interlock chain communication system as well.

In order to increase the involvement of community interaction, they had also conducted a bounty program where anyone who successfully attacked the EOS network would win certain incentives. They also have several documentation and tutorials for developing on the EOS platform. The future also seems to be very promising as they are going to implement the parallelism technique during the fall of 2018 followed by cluster implementation to further make the network very efficiently. Based on the way things have gone so far with this project. There is no doubt that these two crucial features are going to be implemented very soon.

EOS token swap

Lately, there has been a lot of confusion regarding the EOS project. The main reason for this confusion is the launch of their own blockchain. Just like any other ICO, the EOS project used the Ethereum blockchain to raise funds. During the ICO period, investors were given EOS ERC20 tokens in exchange for Bitcoin and Ethereum. This ERC20 token has no value as it is not the real EOS token. It was just a substitute before the launch of their own blockchain. However, now that their blockchain is launched, the tokens given out during the ICO period is truly useless. However, these tokens are swapped for the main EOS token in the ratio of 1:1. If you had bought some EOS tokens during the ICO period and had sored them on an exchange, then your tokens were automatically swapped for the EOS coin. However, if you had the tokens in your private wallet, then you need to follow certain steps in order to exchange them for the coins.

Where to buy EOS?

EOS is a new coin compared to Ethereum and Bitcoin. Hence it is not available on all exchanges yet. In order to buy some EOS for yourself, you will need to follow the following steps. You would first have to buy some Bitcoin or Ethereum using your fiat currency on an exchange such as Coinbase or any other local exchanges. Then you would have to transfer them into an exchange that offers EOS. Then you exchange Bitcoin or Ethereum for EOS. This process might seem a little hard for the beginners. However, this is only because EOS is still very new to the market. However, once there is enough usage, this coin is also going to be available on almost all exchanges.

Conclusion

EOS gives the blockchain technology a glimmer of hope in order to replace the current centralized techniques. Often referred to as the Ethereum killer, EOS does everything that the Ethereum blockchain can do but better. With transaction speeds close to that of centralized organizations, EOS is the only blockchain technology that is suitable for mass usage. The team behind the project is also very dedicated and deliver as they promised. Now that their main net is live, the progress of their technology is going to get better from here on. So get on the EOS bandwagon and HODL it on a long run.

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