EOS vs. Cardano – Detailed Comparison of These Two Crypto Titans!
With the ongoing global pandemic and tough economic times across the globe, cryptocurrencies are providing a safe option to financial institutions and investors. Of the over 7,000 cryptocurrencies in the market today, Cardano and EOS are worth looking at as they have reported significant benefits as crypto strives to enter the mainstream financial market. There’s no denying that crypto enthusiasts mostly focus on the top two cryptocurrencies - Bitcoin and Ethereum. Rightfully so, since the two have a lion’s share of the market. However, EOS and Cardano (ADA) have been building momentum and are offering a broad spectrum of solutions which should not go unnoticed. Let’s explore the two in details and see whether they are intertwined in any way
Eos vs. Cardano: Detailed Comparison
Cardano (ADA) has had a great year; this year, it is one of the most talked-about cryptocurrency being the seventh-largest crypto in terms of market cap. ADA has reported an over 310% gain, which was mainly caused by the Shelley mainnet launch announcement
EOS, on the other hand, has been at the resistance level of $3.08. Other cryptos were experiencing incredible highs, but EOS has dropped from the top four cryptocurrencies to the 11th position. A rise back to the top for EOS is pretty unlikely. Both coins have been trading since 2018, with both experiencing their all time high in 2018.
Ethereum came up with the dApp ecosystem, making dApps much more popular. EOS became an alternative for Ethereum. EOS is a relatively new project launched back in 2017 and is often referred to as the operating system for decentralized applications. EOS does not have a gas concept like Ethereum, which means users didn’t have to pay transaction fees.
EOS was also able to process transactions faster. Its delegated proof of stakes (Dpos) consensus mechanism was to thank for the platform is the fastest, cheapest, and most scalable smart contract platform.
EOS Pros and cons
- EOS prides itself on being the fastest contract platform, and rightfully so, it can manage around 6,000 transactions in a second while its counterpart, Ethereum, is stuck on 15 transactions per second.
- There are no transaction fees on EOS, which makes it a whole lot cheaper. The users do not bear the burden of securing the network; instead, the dApps created on the platform take care of it.
- During its introduction, EOS raised about $4.1 billion on its ICO, which was the highest IO ever. The money enabled EOS to create a great Blockchain and, of course, some pretty great dApps.
- The semi-centralized nature of the EOS platform could be problematic; a small group of 21 block producers is responsible for keeping the platform operational.
- EOS is relatively new, meaning that there is still a lot of learning required for developers to create their dApps on the platform, and few people are willing to test out the few dApps available.
Cardano is a technological platform designed to run financial applications. It is built in layers, scientific philosophy, and peer to peer research providing the system with flexibility. The platform uses a new consensus system supported by a team of scientists, researchers, and academic experts who developed the Cardano Blockchain and the Ouroborous algorithm.
The ouroboros algorithm is the first of its kind in the crypto space, but most of all, the Cardano platform’s fascinating thing is the amount of care and expertise involved in its upkeep. The layers in its design allow for easier maintenance and upgrades through soft forks. Three organizations work together to ensure that Cardano works alright; these include Emurgo, the Cardano foundation, and IOHK. Cardano integrated the ShelleyTestnet into its mainnet, which is likely to hasten its full decentralization.
Cardano’s pros and cons
- Cardano’s design ensures network and smart contract security. Its ecosystem focuses on being interoperable, which can provide cross-platform support to various smart contracts and dApps across different Blockchains.
- Cardano prides itself to be the third generation Blockchain, the first being bitcoin, and the second being Ethereum. This seems true since its developers took the positive elements of both Ethereum and bitcoin and infused and incorporated some elements of their own, ensuring that Blockchain evolved.
- Cardano is still pretty young, which means that it doesn’t have as many developers and users like older platforms like Ethereum has.
- Its advanced technology may sound too good to be true discouraging public acceptance. The massive supply of ADA, its cryptocurrency may result in inflation, which may discourage investors.
EOS and Cardano: comparison in terms of scalability
Scalability is a major issue across all cryptocurrencies. Ten years since the introduction of Blockchain technology and the issue of scalability still persists. Newer cryptos have attempted to solve the issue. The EOS IO software is designed for both vertical and horizontal scaling of dApps. EOS did not produce its Blockchain; instead, it decided to develop a system that ensures the scalability of Blockchains using their system.
On the other hand, Cardano tries to solve scalability by dividing it into three areas, Throughput, data scaling, and network bandwidth. Cardano’s Throughput or transactions per second is intended to be able to compete with that of credit cards. In data scaling, Cardano’s strategy is to reduce the number of full nodes. To do this, they use techniques such as pruning, compression, partitioning, and subscriptions to help increase efficiency in data manipulation. Cardano also uses RINA, a technique for separating a network into sub-networks.
EOS and Cardano: comparison in terms of transaction cost
Transaction fees are essential in the Cardano platform because people who run Cardano nodes spend their time, money, and skill, and they deserve compensation. Unlike bitcoin, where new coins are generated with each block mined, Cardano has only one source of income, the transaction fees.
Whenever a user needs to transfer ADA, the minimum fees are calculated, the fees must be paid for the transaction to be valid. EOS platform, on the other hand, does not charge any transaction fees. However, when submitting a transaction on EOS, you need to consider the RAM, CPU, and network bandwidth. You purchase RAM while CPU and network bandwidth require staking.
EOS and Cardano: comparison in terms of consensus
Proof of work and proof of stake are the two mechanisms of consensus used in different Blockchains. Cardano has solved some issues on consensus through the Ouroboros, based on the PoS algorithm and the best one so far. The poS algorithm uses a fraction of the hashing power PoW algorithms uses.
On the other hand, EOS uses delegated proof of Stakes (dPoS) to elect active members who sign valid blocks. This, however, is only half of the consensus process. The first half is used to generate the first schedule of block producers.
Comparison of summary
- Cardano uses Ouroboros, a PoS based consensus, while EOS uses dPoS.
- There are transaction fees in the Cardano platform, while EOS does not charge transaction fees.
- EOS did not design a Blockchain of its own to enhance scalability while Cardano developed their Blockchain.
|Great security||Advanced technology may seem too good to be true.||No transaction fees||Relatively new|
|Interoperable ecosystem||Relatively new||Very fast, over 6000 transactions per second||Semi -centralized|
|Have many experts working to keep it working||Great infrastructure.|
Which platform is better? EOS or Cardano?
There is no real winner in the comparison between Cardano and EOS; it goes down to a personal decision.
Is Cardano the 3rd generation Blockchain?
Yes, Cardano can be said to be the 3rd generation Blockchain owing to the improvement it has brought to the Blockchain.
How can Cardano members help the foundation?
There are various ways for members to help the foundation by joining the ambassador program. Visit the program’s website for more information on the activities.
Will EOS and Ethereum ever work together?
There is a considerable possibility that Ethereum and EOS work together; EOS brings flexibility and speed while Ethereum has excellent technology and phenomenal community.