Ethereum v EOS graphic

EOS vs Ethereum: A Chain by Chain Comparison(7 min read)

EOS and Ethereum represent two of the most popular—and rivalrous—cryptocurrencies on the market. In this article, we’ll compare and contrast their use cases and long-term potential to provide a better idea of where each coin stands in the overall market. 

EOS vs Ethereum: The Basics

Ethereum was founded in 2013 by Canadian-Russian programmer Vitalik Buterin. It currently stands as the second-largest cryptocurrency by market cap after Bitcoin.

Ethereum is the most actively used blockchain in the world. It’s primarily employed as an open-source software platform upon which developers can build decentralised applications or “dapps.” Via the Ethereum network, users can send and receive cryptocurrencies without the need for an intermediary or third party governing entity.  

Coming slightly later to the game, EOS, along with its native blockchain, EOS.IO, was conceived in September 2017 by open-source software company Block.One. Akin to Ethereum, EOS is a platform for creating decentralised apps.

EOS boasts the biggest ICO of all-time after raising over $4 billion in 2018. A total of one billion EOS tokens were distributed under Ethereum’s ERC-20 token standard upon launch.

EOS vs Ethereum: Points of Difference 

While ETH and EOS are relatively comparable, they hold few important distinctions.

EOS was originally built on the Ethereum blockchain but migrated to the EOSIO mainnet in 2018.

The two blockchains both allow the creation of decentralised applications but to different ends. While the Ethereum network focuses on dapp creation for a broader demographic, EOS.IO is geared more towards developing enterprise-level applications.

A key difference between EOS and ETH is the number of transactions each blockchain can handle. EOS can purportedly render up to 10,000 transactions per second (TPS) thanks to a dedicated side chain, while the Ethereum 1.0 blockchain can currently only process around 15 TPS. It’s said that with its 2.0 upgrade, the Ethereum network can repress its scalability issues and handle over 100,000 TPS.

EOS looked to solve these scaling problem by opting for a proof-of-stake (PoS) model over proof-of-work (PoW). However, with the phase 0 rollout of the ETH 2.0 upgrade complete, Ethereum has already started its journey toward becoming a staking protocol. Phase 1.5 of the upgrade will see Ethereum officially merge its legacy blockchain with the new Ethereum 2 chain and become a fully-fledged PoS model. 

Other important differentiations include transaction fees. Users on Ethereum need to pay for “gas” on each transaction. And thanks to network congestion—due primarily to the decentralized finance (DeFi) sector boom—Ethereum’s fees have reached excessive levels.

On the other hand, EOS omits transaction fees altogether—but that doesn’t mean they’re free. Instead, users must buy “RAM” from block producers to execute transactions and smart contract functions.

Overall, EOS improves on the scalability, fees, and speed of the current Ethereum 1.0 blockchain while sacrificing some of Ethereum’s decentralised characteristics. 

Here’s a breakdown of the distinctions between EOS and ETH:

 EOS:Ethereum:
Purpose:Build large and scalable smart contract blockchain applications, focused on performanceSmart contract platform. Send and receive funds without the need for an intermediary. Focused on decentralisation
Consensus Mechanism:Delegated Proof-of-StakeProof-of-Work transitioning to Proof-of-Stake
ICO raise:$4 billion$18 million
Supply:Capped at 1 billionInfinite

EOS vs Ethereum: Market Performance and Dapp Usage 

EOS’s market capitalization is approximately $2.2 billion. Ethereum’s market cap is estimated to be over $67.8 billion. Ethereum has a much higher market cap, but that’s expected since it was founded in 2013, while EOS was released a few years later in 2017.

Check the table below for a detailed breakdown:

 EOS:Ethereum:
Circulating Supply:938,862,372113,967,072
Total Supply:1,025,562,383Infinite
All-Time Peak:$22.89 (April 2018)$1432.88 (January 2018)
All-time Low:$0.48 (October 2018)$0.48 (October 2017)
Current Rank (by market cap):162

As for dapp usage, Ethereum blows EOS out of the water with 3,040 total daps to EOS’ 333. The same goes for users. Ethereum boasts nearly 100,000 daily active users, while EOS comes out at a fraction of that with just under 20,000 daily active users . 

However, it’s within daily transactions where EOS truly shows it’s might with 687,000 daily transactions to Ethereum’s 273,000.

PlatformTotal Dapps Daily active users Daily Transactions
Ethereum:3,04097k273k
EOS:33319k687k

The lack of EOS dapps could be down to the popularity of Ethereum’s programming language.

Ethereum uses Solidity, a relatively new programming language that has become a niche among smart contract developers. In fact, many alternative blockchain devs opt for Solidity to ensure compatibility with Ethereum smart contracts.

On the other hand, EOS employs C++ for its flexibility and capacity to run numerous applications atop the blockchain.

While C++ is extremely popular outside of the crypto sector (boasting over 4.4 million developers), Solidity remains the smart contract programming language of choice.

The Verdict

EOS and ETH are two coins with many similarities. For now, EOS stands as the more efficient currency while Ethereum muddles through the protracted rollout of the ETH 2.0 upgrade.

Overall EOS has strived to improve upon some of Ethereum’s fundamental flaws—namely scalability. Though with the first phase Ethereum 2.0 finally dispatched, Ethereum is well on track to tackling these issues itself. 

EOS was once dubbed the “Ethereum Killer.” However, that moniker finds less usage these days thanks to the overwhelming usage of the Ethereum network. That said there’s not much preventing an en-mass migration from Ethereum to EOS.

With its impressive transaction throughput and its zero-fee model, the EOS blockchain presents an extremely practical alternative for the DeFi sector, Moreover, with a tilt toward enterprise, EOS represents an attractive prospect for businesses and companies looking to capture the potential of blockchain and DeFi.

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