EOS
EOS has gained popularity over the past few months as the Ethereum killer. The blockchain platform was developed by Block.one and the mainnet went live last year. Ever since the mainnet launched in 2018, EOS has recorded some of the biggest dApps in the cryptocurrency space, overtaking Ethereum and Tron as the most valued dApp and smart contract network.
It is a blockchain protocol that runs a smart contract development network for decentralized applications. It has an advantage over Ethereum in that transactions are fast and scalable, while the transaction fees are at a near zero.
The EOS.IO basically works like an operating system on the blockchain that makes it possible for developers to create apps and tokens. When compared to other smart contract networks, EOS has the upper hand in that it is scalable and has a high level of flexibility.
In addition to these, decentralized applications developed on the EOS network look similar to their centralized counterparts, with the exception that they retain their decentralization features.
The fact that EOS raised the most substantial amount in a token sale in the history of the cryptocurrency space is an indication that many believe in what the project has to offer. The ICO started in 2017 and ended last year, with over $4 billion raised in the process.
To run the EOS network, Block Producers (BPs) are elected. There are 21 BPs on the EOS network, and they represent the interest of the broader EOS community. Blocks on the EOS network are produced 21 at a time. At the beginning of each round, the EOS token holders get to vote for BPs that will confirm transactions on the network.
EOS has come under criticism from some cryptocurrency proponent who believes that it is a centralized entity due to the Block Producers controlling what is happening with the blockchain.
EOS features
- The blockchain makes use of the DPoS protocol
- 21 Block Producers are elected to run the network
- It is a smart contract and dApp platform that is more scalable than Ethereum
- EOS had the most significant ICO fundraising in the history of the crypto space.
- Total coin supply is 1,006,245,120 tokens
Ethereum
The Ethereum network has played host to some of the biggest names in the cryptocurrency space, including EOS before its mainnet. The world’s second largest crypto by market cap was founded by Vitalik Buterin, and it has served as the primary smart contract and dApp platform for the industry over the past few years.
While Ethereum has been an industry leader, it has struggled to become scalable as transactions on the network are usually slow. This has affected some dApps like CryptoKitties that have experienced a large number of users.
Buterin explained the blockchain trilemma, claiming that it is hard for a public blockchain to achieve scalability, decentralization, and security all at once. A blockchain that is decentralized with a high level of protection will suffer in terms of scalability.
However, Buterin and other Ethereum developers are working on upgrades such as the Constantinople, Sharding, and others that are expected to make the network scalable. Once Ethereum achieves that, then it would be able to compete with EOS and TRON in terms of handling large transactions.
Unlike EOS that uses the DPoS protocol, Ethereum uses the proof of work (PoW) consensus mechanism. The PoW protocol depends on miners to approve transactions. While it is good, Vitalik Buterin has indicated that Ethereum will move away to the proof of stake (PoS) protocol which he considers to be better.
There are over a 100 million ETH token currently in circulation. The ETH coins the native tokens of the network, and they can be traded or used for other functions. Ethereum has a second token called a gas. These tokens are used to pay for smart contract execution on the blockchain. Each smart contract requires a certain amount of gas to execute.
Ethereum features
- It is a smart contract and dApp platform
- The network has two tokens; ETH and GAS
- It has over 100 million tokens
- The blockchain uses the PoW consensus mechanism
Dagcoin
While EOS and Ethereum are smart contracts and dApp blockchains, Dagcoin is based on the DAG-chain. The cryptocurrency is the first to be specifically designed for using, not trading. This implies that Dagcoin is the premiere cryptocurrency that is tasked with serving as a currency instead of just being a speculative tool or as a niche token like ETH and EOS.
Satoshi Nakamoto recognized that there is a need to make changes to the global financial landscape, hence the creation of Bitcoin. The leading cryptocurrency was developed to serve as an upgrade to the fiat currencies. However, it has become more of an asset and a store of value over money due to some challenges like slow transaction speed, high fees, and more.
Dagcoin is now working towards achieving that goal and becoming a cryptocurrency that is solely used to purchase goods and services in stores and online platforms all over the globe. To ensure that it serves as a full currency, Dagcoin has adopted know your customer (KYC) and anti-money laundering (AML) measures. These measures provide that the cryptocurrency is not being used for fraudulent activities such as money laundering and terrorism financing.
The transaction fee is close to zero and is carried out almost instantly. The cryptocurrency is easy to access, and people from all over the globe can use it once they comply with the regulatory conditions.
Dagcoin features
- It is AML and KYC compliant
- Dagcoin is created to serve as a currency
- The transactions are fast and cheap
- Total coin supply 9 000 000 000 dags
- The technology behind it is DAG-chain
Conclusion
The first two cryptocurrencies reviewed, EOS and Ethereum are similar since they are both dApp and smart contract networks. The two are the leading cryptocurrencies in their category though they face fierce competition from TRON.
Dagcoin meanwhile is a unique cryptocurrency that is focused on becoming a currency rather than just a speculative tool. With KYC and AML measures in place, Dagcoin is on track to become the first cryptocurrency to become universally accepted as a means of payment for goods and services.
