Hello everybody! Surely you have realized that cryptocurrency is a hell of a jungle, there are a lot of projects that do the same thing. Then I thought it would be interesting to make cryptocurrency comparisons who are doing just the same thing, basically looking to compete.
So we will start with a comparison between Ethereum and EOS, so two big behemoths in cryptocurrency, and I would like you to give your opinion in a comment if this type of comparison interests you. Good since this is a comparison we will briefly review what it is that Ethereum and what is EOS so don’t worry we did already analysis videos but here I will do a little recap eh concretely what these projects are.
After the goal will be really to compare them, we must see that as an analysis but an analysis that puts them in confrontation directly. So Ethereum is clearly one of the cryptocurrencies the most known.
It was proposed by Vitalik Buterin in 2013 then the technology, therefore Ethereum, was brought live in 2015. Ethereum’s vision was to bring to cryptocurrency what Bitcoin could not do, namely, make smart contracts.
So smart contracts if you don’t know not what it is, the smart contract, you have to see it as a contract eh, really contracts as one would sign with a notary for example, who is automated: i.e. when there is an event, for example when I have sold something well there is an operation which is automatically executed in this contract.
Well, it’s not really smart contracts, since they only perform tasks that have been developed by developers are the people who develop smart contracts. We use another term that also describes smart contracts that is “decentralized applications” so don’t be confused if sometimes I say “decentralized application” and sometimes if I say smart contract, it’s roughly the same thing.
Now EOS, so for EOS first the name you have surely already heard the name in a different way to some people they call with the English accent “EOS”, and there are others, people, they call EOS io, in my opinion, the correct terminology normally it’s EOS io because that’s what they call their project themselves.
The origin of EOS is difficult to define, normally the idea was proposed publicly in 2017, but there is a good chance that she was already thought maybe well in 2016. And she was put live very recently, that’s what I do this video precisely. The EOS project went a life that early June, so I don’t think it has actually been put live for the moment but it is in in the process of being done in any case.
The executive head of the project is called Brendan Blumer is not necessarily someone known in the crypto so here in fact since his old businesses, so he’s been someone for a long time that he started his business, he started at 15 years old.
Its former companies are mainly related to real estate in fact on investing in real estate and started a business called OK.com It’s a bit funny name I think “OK.com”. So it’s a company which is based in Hong-Kong, it is a kind of agency real estate therefore with a website.
And the technical director so there it is surely the most famous name is Daniel Larimer, Daniel Larimer for once he is someone known in the crypto so here, since he’s the guy that Bitshares created, and he’s the guy behind Steem.
And you have to know above all, so I’ll bring it up when I go make the comparison is that all these EOS projects, Steem and Bitshares, are linked by another project called “Graphene”.
We will start directly with the similarities between these two projects and it will be very fast since their similarity rather on the vision because technically they are very different and we will see in their differences precisely that there are many differences between these two projects.
So in the similarities, we find the vision since these two projects, Ethereum and EOS aim to make a system that manages programs in a decentralized network, thanks to cryptocurrency for EOS cryptocurrency is simply EOS or EOS la franaise and for Ethereum, cryptocurrency is Ether.
Another similarity between the two projects is that both are managed by a group to non-profit; for Ethereum it’s called Ethereum foundation so it’s really a company that manages that and for EOS the company is Block one. Come on, now the differences and there is clearly more to be seen I can tell you! The first difference we will talk about the consensus algorithm that governs the different protocols.
So for Ethereum, it is well known that it is on a proof of work, therefore, minors: they perform calculations in a competition to validate blocks and suddenly publish blocks in the network.
For the case of EOS, well we are on what we call a Delegated Proof of Stake (Dpos) which is like Proof of Stake (POS) therefore Proof of Stake, the principle is that people who hold tokens so EOS can vote for future blocks and the no longer voter has tokens, the more there is a probability of validating blocks but the DPOS is this principle of the POS + the delegation by EOS users, i.e.
All users of EOS can vote for their delegates in fact their representatives. His representatives it can be anyone who wants to apply, so just to publish on the internet that you want to be in the EOS network to produce blocks and then EOS users vote for their representatives.
The EOS protocol only allows 21 representatives, which is very little that means that there are 21 actors who will produce blocks. Besides I say well produce blocks and not mine blocks since it is true that the concept is a little different in the end they don’t do a job for produce these blocks like mining, mining is a kind of job done by computers.
For EOS, there are coup representatives who produce blocks and moreover, they are rewarded for the production of these blocks. It is important to note, as I said today Ethereum is mostly a proof of work he intends to pass a Proof of Stake (POS) on a proof of stake that I explained a little before with a sort of proof of stake/proof of work mix, but we do not know exactly what they will go on, it is still under study.
And this algorithm there they called it Casper. EOS has a very different from what we can see on Ethereum, and even on the big majority of cryptocurrencies so Ethereum if you have used Ethereum you know you have an address, actually a public address, like when you are using Bitcoin. But on Ethereum, there is a particularity it is that it does not speak of the address when you use the address it speaks of account in fact that you have it’s called an account.
For EOS it’s the same there will have accounts, except that there are a lot of features for these accounts. In this case, there is a feature of “account naming”. Today with Ethereum, so like I said we use a public address, which is not necessarily meaningful, with EOS you can simply name your account so necessarily the name will be unique. For example, I have an account I Call him Jonathan, there will only be one person who can have the Jonathan account.
So there it will be difficult Jonathan it could be taken rather quickly. But is not all EOS goes really far in managing accounts: another feature is a feature that allows you to manage the permissions of an account for a decentralized application imagine there is a contract and this contract can set permissions for each account actually.
It offers greatly increased power. So on Ethereum from experience I can tell you that we can do it but we must develop it oneself, suddenly it’s time-consuming and it may be flawed. For EOS, it is directly integrated into the basic functionality of EOS. And finally always in the management of EOS accounts allows an account recovery system.
Say you have an EOS account, you get it stolen or you lose it, well you will be able to recover it thanks to an EOS protocol system. So that’s something we don’t have at all in Ethereumn, Ethereum it is really in an idea “let it be” that is to say that people manage their thing is like their safe if they lose their address they had only to be careful they cannot recover it, with EOS it is possible.
Once again, EOS goes much further than Ethereum. So Ethereum one could qualify as a rather anarchist system, that is to say, that there nothing planned to for example update the protocol or for example, I don’t know let’s say there’s a smart contract that’s causing problems for protocols well there is no way to break this contract remove it nobody has control over that in fact except the developer of the contract if he has put a feature to self destruct or that sort of thing.
Well EOS, on the other hand, allows this kind of thing. So as a reminder EOS we are on a proof of stake protocol, with representatives, well these representatives they can vote so there must be a majority that vote, for some features that have some control over the protocol. One of the features, for example, is being able to put update the protocol.
Another feature is that they can block accounts; actually, block accounts. That is, if an account that has been identified as a little fraudulent or an account that tries to hack the protocol a bit, the representatives are capable of literally blocking an account that interacts with the EOS protocol.
This system of governance does not come from anywhere since it is a recurring problem in cryptocurrency, moreover, Ethereum suffered it since you have surely heard of TheDAO attack, which has literally blocked I believe 15% of the total funds of Ethereum, Ethers, at the cause of this attack.
And since no one has control over these smart contracts, so it was a loophole in smart contracts, well there are these tokens that are literally stuck, no one can move them in fact even if there are attempts, there are even discussions quite heated debates sometimes around that to unblock the situation.
You surely know, but using Ethereum you will pay a fee of transaction, so it works for trading Ethers but it also works for interact with smart contracts, and EOS allows you not to really pay any do not pay transaction fees when making transactions. Finally in theory! Let me explain today Ethereum has a real problem that hinders adoption is that users smart contracts that want to interact with smart contracts, have to pay.
It’s like asking a client when using Amazon he must pay for all requests that it runs between his computer and the Amazon server it’s the same principle with Ethereum, it’s really the customer who has to pay interaction.
And that is a brake, that means that customers must have of Ether or interact with contracts but with EOS, customers don’t need to pay to interact with smart contracts, on the other hand, developers those who create smart contracts themselves have to do something thing so that customers can interact with contracts.
And this something, well, it’s just putting EOS tokens into play, so really put in play, to block EOS tokens, to say I have so many quantities of tokens, I put such a contract I publish it on the EOS Blockchain, I want users to interact and depending on the number of tokens he has put into play well he will have a certain amount of resources used in the network.
Because the transaction costs and it must be understood does not come from anywhere, in the case of Ethereum it comes from makes minors when performing contract functions intelligent, they must use the normal resource, we perform a function, well for EOS it’s the same, we execute a function except that there are no costs that will be allocated to minors and finally to producers of blocks that will perform the functions is really the developer by blocking a certain amount of tokens will be able to say ok my program is going to have to use such a large amount of resources.
Another huge difference to the way EOS and Ethereum run their own protocol so here we are going to talk a little more technical but don’t worry I’m going to be very simple, it’s that Ethereum has rather a state vision, in fact, it records all the data of smart contracts that is to say that a smart contract, I remind you, it’s a contract, it’s a program itself, which is executed according to certain events, well the states of the contract are recorded, that is to say, that let us assume that on its on the contract there is has a value of 10 euros well if this value changes and I put 5 euros this 5 euros is a state in fact it is recorded in the Ethereum blockchain.
For EOS the approach is completely different, they are interested in the event. Imagine a crowdfunding project on Kickstarter well an event would be the moment when the project reaches the funds it needs.
Let’s say he needs 100,000 euros, eh bah when it arrives at 100,000 euros there is an event, it has reached what it has need. And this approach allows one thing for EOS to be able to do parallel execution. So to make it very simple, today we need to see and Ethereum as a computer a supercomputer with a network decentralized.
Must see Ethereum like this it’s really one supercomputer that runs all the contracts intelligent. This is why Ethereum can only do 20 transactions per second roughly. By cons EOS should not see it as a big computer should be seen as full of computers that can run the parallel programs.
So another difference is the number of transactions per second than Ethereum and EOS can do. Ethereum can do 20 transactions per second, EOS claims it can do hundreds of thousands. I say “pretend”, it was not really tested but here we pretend to be able to make thousands of transactions per second ie I don’t know a thousand ten thousand times more than Ethereum.
And finally another major difference again this is something Ethereum does not, is that EOS requires to actually associate a smart contract what is called a Ricardian Contract. So it sounds to you may be a strange term but the Ricardian contract is an invention made by a person who allows to put on a sheet with intelligible words what a program must do legally. Basically, it’s a contract with different parameters like “who exchanges with whom”, “for what” “how much, what is the quantity” for example of sums which are put into play etc.
So it’s really a contract with intelligible words with text elsewhere whether in English or French or whatever the language but it’s supposed to be an intelligible contract readable by everyone and which makes it possible to make a sort of summary of a smart contract which I finally recall and code is a program so it is code and which allows summarizing this code in an intelligible text.
And suddenly it allows formalizing the transactions that there are between different actors and it helps to formalize what a contract actually does clever. It allows cryptocurrency to coincide with blockchain technology and smart contracts with states governments and their laws.
Here I am done with the similarities and the differences so there is still plenty to say about the differences but we will stop there I really cited the big elements that should be cited.
And finally, you expect it, you want to answer “but suddenly what is better “this is a comparison is Ethereum better than EOS or the reverse? Well, it’s a little hard to say since do not be fooled by the concrete information that comes of using the protocol for x years eh, I’m thinking of Ethereum and the theoretical information.
In fact on paper, we can do that on the paper, because indeed EOS, it seems really promising that I can say technology is starting out on a good idea, there are some points really that I find it very interesting as for the fact of managing the transaction costs.
There is a really interesting idea for that, but you shouldn’t be fooled by the different terms that Daniel Larimer could use, even if you respect even if you find that it is very strong etc it is even yes it is very strong, there is no doubt about it, but that does not mean that he says necessarily always the truth.
Because hundreds of thousands of transactions per second in a “semi-trustless” network, “semi trustless” because that it’s a Proof of Stake with representatives agreeing it seems completely crazy so I’m not saying it’s impossible I say I’m asking to see. All the more so as I remind you of Dann Larimer, it is the guy who worked on Steem and who worked on Bitshares and he claims that these different protocols do thousands of transactions per second and I have searched the internet for data and I really didn’t found, so by the way if you have any I would like you to put it in a comment.
Because I haven’t found any information that says that for example, Bitshare does 100,000 transactions per second, I don’t have them not found this information. I had mentioned it a little at the beginning but in fact, this which links all these Steem and Bitshares projects and even EOS, in reality, it is a project which is called Graphene, which was also designed by Dann Larimer and which is on a DPOS protocol, well Graphene allows you to create cryptocurrencies with a basic protocol in fact that is the Graphene protocol.
EOS seems to be some kind of evolution of Graphene, suddenly the real problem of EOS today is its youth here we are really talking about a system that will run programs for companies in a network I had said “semi trustless” therefore programs that should not have flaws, this is extremely important, eh well at this level we are not assured of anything and even Dann Larimer does not know not exactly how the network will behave based on their system of interests for example for block producers, the way in which developers will not have to pay fees for example, and all these systems there it is very difficult to predict what will really go happen.
Besides, that’s why he has a rather peculiar governance system is strong enough quite pronounced in EOS it is precisely to manage deadlock situations where there is a big loophole in a contract as it arrives with the DAO, I repeat, on Ethereum a hack that there was because of a smart contract well if it happens in EOS, they have a kind of little lever of little red buttons to manage the situation.
So like I said, for example from block an account if an account that steals tokens from a smart contract because of a flaw bam they block the account like that this account no longer steals anything.
So suddenly it is that my EOS opinion is promising but really it’s this kind of project where I ask to see for the moment I estimate that Ethereum is better by its age and we know that it works then indeed there are problems, there are transactions they are slow there are 20 transactions per second it is not much, there is the problem of fees so here I speak to you from experience I lived it I can tell you that it is extremely restrictive but they intend to update it, There is an argument from Dann Larimer precisely he says that and he is right, he says update a car engine finally fix it when it’s underway it’s quite difficult and it really is with Ethereum actually.
Ethereum the protocol is launched, it manages billions of dollars of ICOs, because a lot of ICOs are launched thanks to Ethereum, update Ethereum knowing that there is no system of governance planned especially for updates days as strong as changing the consensus algorithm for example or even I did not really mention it but or “plasma” precisely “plasma” which would considerably increase the number of transactions, I can tell you that it is extremely difficult.
For reminder only invest what you are willing to lose, this video is not investment advice. So let me know if you were interested! It was Jonathan and suddenly I say see you soon.
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