Ethereum VS EOS

Boxmining avatar Boxmining
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Description

The battle for the best smart contract crypto currency begins, with Ethereum vs EOS. EOS has been called an Ethereum killer, with ability to handle massive numbers of transactions, process payments di...

AI Analysis

The cryptocurrency world is currently buzzing with an intense rivalry between Ethereum and EOS, often dubbed the "Ethereum killer." This debate stems from discussions between Ethereum's creator, Vitalik Buterin, and EOS's co-creator, Dan Larimer, revolving around their respective protocols' features and future potential. The core of the argument centers on whether EOS can truly overcome Ethereum's current challenges, particularly in scalability and user experience, despite EOS currently being a theoretical platform rather than a fully functional one.

Here’s a breakdown of the key points in this epic battle:

### Ethereum: The Established Powerhouse

* Core Functionality: Ethereum allows for the creation of smart contracts, which are essentially "programmable transfers of value." This means funds can be released automatically once specific, verifiable conditions are met, eliminating the need for intermediaries. For example, if you complete a task and submit mathematical proof, you automatically get paid in Ethereum.
* Decentralized Applications (DApps): A major use case for smart contracts is building DApps. Examples include esports platforms where payouts are guaranteed based on game results, or services like the Ethereum Name Service (ENS), which allows you to buy unique Ethereum names and interact with smart contracts directly, without a central authority. The advantage here is the removal of third parties and guaranteed payment.
* Turing Completeness: Ethereum is "Turing complete," meaning it possesses the fundamental computational operations that allow it to perform almost any task a regular computer can, making it incredibly versatile for building complex programs. This is why there's so much excitement and potential around it.
* ICO Platform: Ethereum has become the go-to platform for Initial Coin Offerings (ICOs), enabling countless projects to raise funding by issuing their tokens on the Ethereum network.
* Current Challenges: Despite its strengths, Ethereum faces significant challenges, particularly with scalability. During popular ICOs, the network has become extremely congested, leading to transaction times of up to two hours. Another major hurdle is the GAS fee system; users must pay small amounts of GAS for every interaction with a smart contract, even for simple actions like sending a message. This model is seen as a barrier to widespread adoption for many DApps, especially social networks, where users aren't accustomed to paying for every post or interaction.

### EOS: The Self-Proclaimed Ethereum Killer

* Ambitious Goals: EOS aims to do everything Ethereum can but with significant improvements, specifically targeting Ethereum's scalability and user interaction issues.
* Tackling Scalability: EOS claims to offer much higher transaction throughput, addressing the congestion problems seen on Ethereum.
* Revolutionary User Payment Model: A key differentiator is EOS's approach to user fees. Instead of users paying GAS for every interaction, the creator of the smart contract holds and stakes tokens, effectively footing the bill for user interactions. This means users can interact with DApps on EOS for free, akin to how you don't pay to post on Facebook. This model is intended to encourage a wider range of DApps, including full-fledged social networks, which would be challenging to build on Ethereum due to recurring user fees. EOS's co-creator, Dan Larimer, previously built Steem, a social media platform, which informs this design choice.
* Technical Upgrades: EOS boasts other technical advancements, such as using Delegated Proof of Stake (DPoS) for consensus and allowing smart contract code to be almost in a readable form, unlike Ethereum's machine code, theoretically making it easier to inspect.
* The "Ethereum Killer" Claim: With these proposed advantages, EOS presents itself as a superior platform, capable of handling more transactions and offering a better user experience for DApps.

### The Epic Battle: Theory vs. Reality

* EOS's Unproven Status: The biggest hurdle for EOS is that it's currently a theoretical platform. It exists primarily as a white paper, with the core code not yet completed. The project is still in its year-long Initial Coin Offering (ICO) phase, raising funds to build the protocol. This means the claims of superior performance are yet to be proven in a live environment.
* Vitalik Buterin's Criticisms: Ethereum's Vitalik Buterin has raised significant security concerns about EOS. He questions the security of Delegated Proof of Stake (DPoS) if voter participation is low, potentially making the network vulnerable. He has also pointed out the removal of certain hash signatures in EOS, which could lead to protocol-level flaws and security risks, potentially allowing for the loss or theft of funds at the fundamental level of the blockchain itself, unlike hacks on Ethereum which have typically occurred at the application layer.
* Dan Larimer's Responses: Dan Larimer has responded to these criticisms, stating he has experience dealing with voter turnout issues from past projects and asserting EOS's ability to produce blocks much faster.
* The Presenter's Take: The presenter believes this "epic battle" hasn't truly begun because EOS is still in its infancy. It's essentially a comparison between a functional, albeit challenged, product (Ethereum) and a theoretical one (EOS). There's skepticism about Dan Larimer's ability to complete such an ambitious project on time, especially since Ethereum is also continuously evolving with new releases and upgrades, including the adoption of Proof of Stake. The irony is also noted: EOS is raising its funding by selling its tokens on the Ethereum network.
* Current Implication: As of now, the debate is largely speculative. While EOS's ideas are compelling, the project needs to be built and proven before a true comparison can be made. It's a fascinating development to watch, but it's too early to definitively crown an "Ethereum killer."

Transcript

What's up everyone? Today I want to talk about the epic battle between Ethereum and EOS. So there's been a huge debate recently about these two coins and there's actually a back and forth between the creators of Ethereum and creators of EOS, Vitalik Buterin and Dan. And they've been talking about various features of these different protocols. And today I want to make a video about a little bit of a summary about what these kind of major arguments are and also weigh in a bit about the technology...