Why EOS Might Not Be The Ethereum Killer Everyone Thinks
Ever since it became an active ICO in 2017, EOS has gained a lot of hype and recognition amongst the crypto sphere EOS There has been an ongoing debate between EOS and Ethereum. Supporters of EOS believe that it has the potential to overtake Ethereum in market share, popularity, and overall usage.
We don't believe that, and we're here to tell you why.
- What is EOS
- Blockchain Battle – ETH vs. EOS
- Project Longevity
- Investor INterest
- dApp Market
- Market Value
- Team Interest and Community Backing
What is EOS?
EOS plans to create a blockchain that’s able to support industrial-scale decentralized applications. Sounds familiar? While this sounds amazing, there are two things that EOS claim that has captured the public’s imagination:
- They claim to have the ability to remove transaction fees.
- EOS claims to be able to process over a million transactions per second.
The project plans to act as an environment where crypto developers create and deploy smart contract dApps, but they handle the task differently than Ethereum. Unlike Ethereum, developers can use any coding language they want to deploy their apps.
But how do we know that it’s actually an “Ethereum Killer”?
Blockchain Battle – ETH vs EOS
Here’s what you’ve been waiting for! The debate between these two interesting blockchain ends right here. While EOS has its own quirks, it doesn’t match up to the power and popularity of Ethereum. Here’s why:
Even though EOS is planning to fix the scalability issues of decentralized apps, the project is too young to stand out on its own fully. For example, EOS has created its blockchain using Ethereum's framework. This gives Ethereum a significant advantage over EOS. If Ethereum was to create another fork (as it has done with Ethereum Classic), all of the users within Ethereum’s community will go to that new iteration.
In this crypto chicken vs. egg debate, it's clear to see that Ethereum has given birth to EOS. Without its blockchain platform, EOS would not have been able to correct the problems that ETH currently faces. Ethereum is a more mature project than EOS and has given it the ability to grow into a rising cryptocurrency.
When you look at the innovations that Ethereum has made, it's obvious that it has more staying power than EOS. EOS is a relatively new blockchain whose features are still theoretical. We'll have to wait until June this year to see how the project works before we can say its an Ethereum killer.
Also, there are more investors that are interested in using Ethereum in comparison to EOS. In fact, China has created a monthly Global Public Chain Assessment Index to rate the most valuable cryptocurrencies in the market.
The Global Public Chain Assessment Index was made by China’s Information Industry Development. The index evaluates the project’s innovativeness, application usefulness, and technological capability.
As of last Thursday, China ranked Ethereum #1. Ethereum gained a total score of 129.4 topping major cryptocurrencies such as Bitcoin (which was ranked 13th with a score of 88). Even though Bitcoin has been around for over 10 years, Ethereum still came out on top.
And for a good reason. Ethereum has created a foundation for a myriad of initial coin offerings where start-ups make their own digital currencies. Thus, they are able to sell their currencies to investors to receive crowdfunding financing for their future projects.
When it comes to the dApp market, Ethereum gains the early mover advantage. Since it has a year headstart over EOS, Ethereum has thousands of clients that depend on its framework to launch its decentralized applications.
This means that the current dapplication market has already invested a lot of time, money, and effort to learn how to utilize Ethereum’s blockchain. As a result, the switching costs from Ethereum to EOS is high and will lead to a lot of issues within the developer community.
If developers were to switch their dApps into a different application like EOS, they would have to start the process over in its new platform. This means that they'll have to carry all of their data from Ethereum to EOS's framework. But, this option might not be affordable or practical, so users might continue to use Ethereum's platform instead.
According to Coinmarketcap, EOS is ranked in 5th place. Take this in comparison to Ethereum which is ranked #2. Ever since 2017, Ethereum has remained in this spot only to trail behind Bitcoin. Even though EOS has shot its way to the top 10 cryptocurrencies, it still has a long way to go before it reaches ETH’s market value.
And let’s compare EOS and ETH’s price charts.
EOS Price Chart
ETH Price Chart
When looking at both charts, we can see that ETH has more of long-term growth than EOS. And the price value definitely shows it. Right now, ETH has a value of $682.21 while EOS has a value of $12.50.
This value is due to the fact that ETH has been on the crypto exchanges for years. EOS is still in development, meaning that it hasn’t shown that value past its ICO funding. So we’ll have to see how EOS acts in the future before we can make assumptions that its better than Ethereum. While ETH's price seems to be already pretty high, it has lots of upsides – it is used every day for general crypto payments, ICOs, and right beside BTC when it comes to implementing crypto payments in an online venture.
Team Interest and Community Backing
Some skeptics say that EOS doesn’t have a dedicated team. The team has a small amount of interest in the success of EOS because they have raised a rather disproportionate amount of funds and kept only a few of the EOS tokens for themselves. In the past, we found many voices that encountered an “arrogant behavior” in EOS chatrooms, directly from the devs. Breaking it down to the crypto user as “end customer” this is not what you want to see as it would be far from professional if true.
On the other hand, Ethereum is created by a worldwide team of passionate developers that want to see the platform grow. And, they are backed by a community of 1,999,999 members who all have Ether accounts.
Any cryptocurrency is only as valuable as the community behind it. Since Ethereum has a large community vested into its platform, it will be hard for EOS to establish a community as dedicated and loyal as Ethereum’s.
In this blockchain battle, ETH is the winner. EOS has gained a lot of traction and interest in the recent days, but we are unable to call it Ethereum’s competitor until it launches. Until then, Ethereum remains the superior choice and the better blockchain framework in comparison. Furthermore, this seems to be another case of where the price of a coin rises, and people fill their bags – then trying to shill – Killer. We do not believe that hype – we think. The given fact, EOS has quite some room upwards, it still might be a good coin to hold, it might not be the Ethereum killer people are trying to sell it for right now.