Ethereum and EOS are two of the world’s most prominent blockchain projects at the time of writing.
While Ethereum wants to decentralise world computing, EOS’s target is to run fast decentralised applications (dApps). To achieve these goals, each protocol uses a different consensus algorithm and a different governance model.
Ethereum has a strong focus on decentralisation at its core, while EOS provides speed by removing some of its decentralised features.
At the end of the day, depending on the purpose, both projects have their pros and cons.
In this article, I will dive deeper into each cryptocurrency protocol individually and compare them both in terms of security, scalability, and decentralisation – the three core aspects of any blockchain.
Ethereum is a decentralised smart contract platform. Like Bitcoin, the Ethereum network has a token (Ether), a blockchain, nodes, and miners. However, unlike Bitcoin, the blockchain maintains consensus for a ‘virtual computer’ dubbed the EVM (Ethereum Virtual Machine). Distributed smart contracts can be created and deployed on the EVM.
Ether is the native token on the Ethereum network. There are around 100 million Ether on the network today, and the token is used to incentivise miners to run their mining hardware (which helps keep the network decentralised).
The current inflation rate of Ether is around 10% a year, but the aim is to bring this down to 1-2% with future network upgrades. To date, no hard cap has been placed on the Ether supply.
Ether tokens can be used for payments between users like Bitcoin, but they can also be used to power smart contracts. When running a smart contract, the Ether is turned into ‘gas’ to then power a smart contract on the EVM.
Think of this gas in the same way as gasoline you put in your car – you need a different amount of gas depending on how long your journey is or based on what type of road you are driving on. Smart contracts on the EVM work in very…