Is EOS the new Ethereum?

As we tried to demonstrate in former articles, at the moment there are a number of problems holding back blockchain platforms from widespread adoption. Most notably is the limited scalability of many current blockchain implementations. In the near future Proof of Stake (PoS) will largely substitute the Proof of Work (PoW) consensus algorithm. Widely recognized blockchain platforms such as Ethereum are slowly but surely transfering to a PoS based consensus algorithm in the medium term, yet there are some protocols that plan to implement a more scalable technology from the beginning. EOS is a relatively early blockchain project that promises a transaction scale of up to 100 000 transactions per second through various scaling mechanisms. In this post we write about the history of EOS and briefly mention EOS’ synergies with Pool of Stake.

The origins of EOS

EOS was born out of the widely perceived limitations of already existing blockchain infrastructure. Based on a white paper that was released in 2017 the platform will be released in June 2018. In 2017 one billion EOS tokens were distributed on the Ethereum blockchain. EOS is currently developed by the private company block.one, but ultimately EOS is envisioned as a platform that invites participation by a large community pool. Notably, EOS is founded by Dan Larimer, a prolific blockchain developer, who initiated many innovative PoS ideas. Next to EOS, Larimer also founded decentralized exchange Bitshares and blockchain based publishing platform Steem. As of today Bitshares and Steem process over half of the transactions in the blockchain space due to their more scalable consensus algorithms.

The benefits of EOS

So far EOS has made headlines for a number of statements like the promise of zero fees and 100 000 transactions per second. So let us dig deeper into the actual technology EOS deploys. Broadly speaking EOS is an improvement over existing blockchain infrastructure for two reasons. First, because of delegated Proof of Stake (DPoS) EOS is a highly scalable blockchain system. Second, EOS is particularly developer friendly due to its more widely deployed programming languages and more.

EOS Scalability

The recurring theme in our blog has been the discussion of alternative versions to the PoW consensus algorithm. PoS is a good start, but DPoS even promises to add convenience and overall benefits to the user. In our PoS overview we have explained the different versions of PoS and what they promise to accomplish. EOS plans to use DPoS as a way to sustainably scale its infrastructure.

There is a total of 21 masternodes at the moment. This means that token holders can delegate their token to one of the masternodes and allow them to stake their tokens on their behalf. By virtue of having a DPoS system all token holders participate in the block rewards and we avoid centralization.

In addition to DPoS, EOS uses multithreading which greatly reduces the time for a computational instruction like hosting a file to be performed. At a fundamental level, multithreading allows that a single set of code can be used by several processors at different stages. This way several computers can participate in providing the necessary processing power for programmes. Imagine a smart contract needs to be executed at a given time, but simply has to wait in line because the network is clogged. The hope is that in the EOS system, networks will not be clogged because multithreading aids scaling. It results that multithreading as well as DPoS both contribute to more efficient scaling on the EOS blockchain.

EOS developer friendliness

The main EOS competitor Ethereum has often been criticized for the inelegant scripting language Solidity. Additionally, many changes in the blockchain are difficult to track for the average user which has led to the exclusion of blockchain enthusiasts who would like to know more about the underlying functions of their blockchains. To begin with, EOS uses C++ instead of Solidity. This way it taps into the pool of C++ developers who are ready to build on its platform. More importantly and much like Windows, Linux and MacOS, EOS is trying to host easy to use developer tools that can be used to build decentralized applications like Steem. Some of these tools are account permissions, a file system, event scheduling and more. In the long run whether blockchain applications succeed will substantially depend on whether they can become intelligible to the average user. EOS is planning to be the market leader in this field.

Pool of Stake and EOS

In conclusion, we believe that the recent emergence of EOS and its continued position among the top ten tokens by market capitalization stands for the wider trend that token investors bet on a bright future for PoS. At Pool of Stake we see a bright future for PoS protocols and want to make sure that all those who invest and participate in such protocols are rewarded fairly for their participation. This is why we create the first ever decentralized pool for PoS tokens. Next to PoS tokens we will also allow users of our platform to stake their DPoS tokens such as EOS.