EOS - A Blockchain platform built to compete with Ethereum

EOS is a blockchain project designed to serve as a decentralized operating system for developing (DApps), aiming to achieve maximum efficiency in processing millions of transactions per second. The project was created by Dan Larimer, the mind behind Bitshares and Steemit, along with Brendan Blumer, and fundraising began from 2017 to 2018.

Unique Features of EOS

EOS has several interesting features. First, the system has no transaction fees, unlike other platforms that charge gas. On EOS, users must stake their EOS tokens to access resources such as CPU, RAM, and Network. Second, EOS uses the Delegated Proof-of-Stake (DPoS) mechanism, which is more energy-efficient than the Proof-of-Work used in Bitcoin and originally in Ethereum.

How EOS Blockchain Works

EOS operates through a voting process by token holders to select 21 (Producers) responsible for validating and creating new blocks. New blocks are added to the chain every three seconds, reducing average transaction confirmation time to just 1.5 seconds.

Block producers rotate in order, with a random number generated by the network. If a block producer fails to validate transactions correctly and on time, they are removed from the list and replaced by the next producer.

Comparing EOS and Ethereum

Both EOS and Ethereum aim to be platforms for smart contracts (Smart Contracts) and DApp development. However, their features differ significantly.

Ethereum was created by Vitalik Buterin in 2014, using the original Proof-of-Work system, where each transaction takes 5 to 40 seconds to confirm and can process only 15-17 transactions per second. Users must pay Gas fees for each transaction.

In contrast, EOS is much faster, capable of processing 3,000 transactions per second with confirmation times of just 0.5 seconds. Importantly, there are no transaction fees, making DApp usage more cost-effective.

Additionally, EOS can be programmed using C, C++, and Solidity, offering greater flexibility than Ethereum, which is limited to Solidity.

Security and Control Systems

A key feature of EOS’s DPoS is the ability to halt network transactions in case of unforeseen events, such as hacking or errors. This allows for quick prevention of losses. For comparison, in 2016, the DAO project on Ethereum was hacked, resulting in losses exceeding $50 million. Because Ethereum could not stop transactions in time, a hard fork was implemented to fix the issue. EOS, on the other hand, can manage such situations more effectively.

EOS’s Design for Decentralization

EOS cannot be mined in the traditional sense like Bitcoin or Ethereum, as its token supply increases at a fixed rate of 5% per year. Of this, 1% is allocated to elected block producers.

One way to acquire EOS is by mining Ethereum first and then exchanging ETH for EOS on various cryptocurrency exchanges.

Financial Institutions Trust in EOS

Galaxy Digital Assets is a crypto-focused investment fund that allocates a dedicated fund for EOS to support and develop the network. It also invests in teams and projects utilizing the EOS Blockchain.

FinLab is a German company that uses blockchain technology, including EOS, to help develop startups and FinTech companies. The interest from such financial institutions indicates that EOS has potential for real-world applications.

Future Outlook

EOS is seen as a strong competitor to Ethereum, offering comparable features but with superior performance. The competition between these projects drives rapid technological development and broader adoption. Continuous improvements lead to an increasing number of DApps built on EOS and other blockchain platforms, expanding the digital asset ecosystem with greater diversity and value.