EOS is the native token of EOS.IO blockchain developed by Block.one a blockchain-based platform for the development of decentralized applications (dApps), similar to Ethereum in function. It makes dApp development easy by providing an operating-system-like set of services and functions that dApps can make use of in contrast to Ethereum which behaves more like a decentralized supercomputer (for the sake of an analogy).
TRON has a completely different Delegated Proof of Stake (DPOS) mechanism it is quite similar to EOS in terms of building a dApp platform. Although it can be said that EOS deviates from Tron by focusing a bit more on fast and fee-less transactions.
The idea behind EOS is to bring together the best features and promises of the various smart contract technologies out there (e.g. security of Bitcoin, computing support of Ethereum). In short, the EOS community is working to provide an easy to use, massively scalable dApp platform for the everyday user.
Let’s check out what EOS aims to achieve, and what exactly is their vision:
- The main aim of EOS is to build a blockchain platform that can process thousands or even millions of transactions per second.
- They also plan on completely removing the transaction fee.
- To make EOS.IO the main platform for issuing smart contracts and making dApps.
- They also claim to have solved the main problem in the blockchain space, i.e scalability.
“To support business, we need to solve problems. And to scale the solving of problems, it has to be done by the community itself, which means it has to be in the architecture. To advance community, we must preserve open entry, but on entry provide the tools that users find useful for governance. Users want to determine their risks and obligations to their counterparties.”
To understand how EOS plans on achieving these goals and claims, we need to first understand the EOS blockchain and their unique delegated proof of stake (DPOS) approach, how they are planning to scale and what solutions do they offer to the cryptospace.
Understanding EOS and its Delegated Proof of Stake (DPOS)
Proof-of-Stake (POS) is a consensus protocol mechanism in which miners stake a certain amount of their coins to validate a block. They are incentivized to act honestly and validate non-fraudulent transactions otherwise they will lose the number of coins/tokens that they’ve staked on the network.
DPOS is based on PoS with the additional feature of delegation. A process in which people elect validators on the network to produce/validate transactions on the network, like a democratic system. The block producers [BP] are chosen by a vote. Anyone who holds EOS tokens can vote to elect a block producer to validate blocks.
21 blocks are produced in each round of voting. 20 of these blocks are made by the highest voted producers while the 21st BP is chosen by a random selection based on the number of votes the other producers have received. This is to ensure that the same set of block producers aren’t the ones who are always elected.
BPs are incentivized to act honestly because they can be voted out by the users at any given cycle. So instead of competing with other nodes, they work together to validate transactions as quickly and efficiently as possible. BPs do not have any malicious intentions as their reputation is always at stake due to the transparency of DPOS consensus mechanism.
Block producers are also required to be active in order to keep the chain moving. Any producer, that hasn’t produced a block in the last 24 hours is removed from voting consideration.
Therefore in this way, instead of reaching consensus across every node on the network like Proof-of-Work. EOS uses a democratically elected pool of 21 validators to achieve consensus more quickly.
How TRON and Ethereum can’t cope with EOS
The biggest problem that this space is facing is the scalability issue. The reason why blockchain-based applications that use Proof-of-Work (Bitcoin) can’t compute that many transactions per second is because each and every node of the network must come to a consensus for anything to go through. Due to this, Ethereum can only handle 20 transactions per second (TPS). Since ETH and TRON use solidity(Ethereum’s own programming language) and it’s own toolkits, it makes it difficult for new developers to quickly adapt to their platform.
With EOS’s Delegated Proof-of-Stake consensus mechanism (DPOS) they can easily compute thousands of transactions per second. The same goes with TRON and it’s DPOS of 27 nodes working together to come to consensus quickly. EOS also uses languages like C++ which is widely adopted and it becomes easier for people to build dApps on it since people are already familiar with it. As of now, TRON can handle 2000 TPS while EOS can handle 4000 TPS. No doubt why its referred to as the ‘Ethereum killer’.
Ethereum experienced a hardfork and got split due to the DAO attack making the new chain Ethereum and the old chain Ethereum Classic. Since EOS uses DPOS this is unlikely to happen in their current ecosystem. If a DAPP is faulty, the elected block producers can freeze it until the system is taken care of. DPOS systems don’t experience a fork because instead of competing to find blocks, the producers will have to co-operate instead.
Transactions per day measure how much activity is happening on the network because actions occur on a blockchain network through transactions. A completed transaction confirms that action or multiple actions have taken place.
As of May 2019, the average transactions per day on Ethereum was about 706,000, TRON had about 1.8 million transactions per day while EOS had 4.8 million transactions per day.
Since building dApps are the USPs of all three platforms, we will take a look into the dApp activity for each of them:
Clearly, EOS has much higher daily active users as of May, averaging about 120,000 compared to TRON’s 62,000 and Ethereum’s 14,000. EOS also dominates the top 5 most popular dApps in terms of usage.
The seamlessness of creating dApps on EOS is due to:
- Free Rate Limited Transactions
- Low Latency Block confirmation (0.5 seconds)- due to the 21 nodes working together to validate transactions.
- Time Delay Security
- Support for Biometric Hardware Secured Keys (e.g. Apple Secure Enclave)
- Designed for Parallel Execution of Context Free Validation Logic- hence more transactions can be processed parallely.
- Designed for Inter Blockchain Communication- which improves its scalability and portability.
Comparative chart between EOS, Ethereum, and TRON
In this segment, we will be taking a deep dive into the different specifications of the three projects.
|Transactions per second||20||4000||2000|
|Average transactions per day||706,000||4.8 million||1.8 million|
|Daily active users(dApp)||14,000||120,000||62,000|
|Block time||10-19 secs||0.5 secs||3 secs|
According to rankings from dappradar.com, among the top 15 dApps, the majority of dApps are EOS-based (66%) while those of TRON and Ethereum account for 26% and 8% respectively.
According to the data gathered above, it’s evident that EOS has been in line with their goals and have managed to deliver an innovative experience for their smart contract and dApp developers.
Given Ethereum’s scalability issues and TRON’s shortcomings on providing fee-less transactions in every use case, developers depend on users to make their creations a success. From that perspective, EOS provides the best platform for creating dApps.