Is EOS on the way to be the Ethereum killer? Dawn 3.0 Alpha Release
EOS is often referred to in the public media as Ethereum killer. The ICO of EOS runs until June of the year 2018 and there are no actual application examples of the cryptocurrency from the practice to show. Nevertheless, the euphoria and the hype surrounding EOS are indignant.
When comparing EOS and Ethereum, it is noticeable that both platforms pursue similar goals. Like Ethereum, EOS also aims to create a blockchain-based platform on which to develop commercial decentralized applications. In contrast to Ethereum, which already forms the basis for numerous well-known projects (eg Cardano, VeChain and Tron), EOS is still in a conceptual stage and can currently boast only one test network.
Nevertheless, the fan and developer community of EOS is already very big. With a market capitalization of 7.2 billion euros and a price of 11.07 euros per EOS (at the editorial time), EOS ranks 9th in the ranking of all crypto currencies in terms of market capitalization.
The success of EOS, without having a productive system, is probably also due to the many exciting features that the EOS network wants to implement:
- No user fees
- Scale to millions of transactions per second
- Delegated proof of stake (DPoS)
- Supermajority Consensus (in place of Hard Forks)
- A more detailed explanation of the technical details can be found here.
What is Dawn?
The dawn protocol was released in the first version 1.0 in September 2017. Dawn 2.0 followed in December 2017. The third and final version of the protocol, Dawn 3.0, was announced a few days ago on Twitter by Dan Larimer and Block.one.
The announcement sparked great enthusiasm in the EOS fan base. The EOS team has announced via Steemit Post that the Dawn 3.0 protocol code has now been released on GitHub (as Master Branch)
Additional features of the Dawn 3.0 Alpha release include:
- deferred transactions
- Staking pools for the DPoS
- new currency contracts
- a new token standard (new emerging token standard)
Why could EOS Ethereum become dangerous?
The EOS supporters believe EOS will replace Ethereum as the next big dApp platform in the future. Accordingly, they eagerly wait for EOS to leave its conceptual stage and be put into production, usable for everyone. With Dawn 3.0 now the last step, even if only in a first alpha trial version, was released.
Presumably, the supporters and investors of EOS but have to be patient. The ICO of the token ends only on 01. June 2018. Before that is probably not to be expected with a launch of the productive system.
If published, however, EOS may, as of now (assuming EOS can deliver on its promises), overtake Ethereum in the two key factors of transaction cost and transaction speed.
Compared to ETH, EOS basically offers free transactions. Each developer can decide whether or not to charge for their EOS-based currencies. In addition, EOS should be infinitely scalable. In contrast, Ethereum has struggled in recent months with rising gas prices and slow transactions. It is therefore all the more important for Ethereum to promote its own scaling solutions (raiding, sharding).
From an investment perspective, however, EOS could be an interesting option for 2018 as soon as the platform starts and first dApps are developed and released on EOS. The EOS course could benefit greatly from this.
Damn. I was actually going to buy EOS at $0,56 a while back, but didn't, mostly because it was on another exchange. Well X20 returns aren't too hard to come by (in this world of crypto), so I'll catch up on these lost potential earnings another time. However, I've been increasingly taking an interest to EOS as a system, and seeing as its alpha hasn't even released yet, I might just consider buying some even now. I'll look into it
Even people who buy in now will still be early adopters if EOS can fulfil it's potential, it's not too late
Yes, I know. And I know it shouldn't matter at what price one buys in at, assuming it will yet grow by many hundreds of percent. Of course, it's psychologically demanding to look at the reality of having lost the opportunity of making X20 your money already. But yes, I shall make a decision about EOS in the coming days.
Yeh I've been kicking myself too, it's always easy to say I should have done this or that with hindsight. Maybe if you don't buy Eos now you'll be looking back in a couple of years with the same feeling you have now
At a $5 billion market cap (and it was $10 billion just a little back), that's not very early adopters anymore I'm sorry. On the stockmarket that'd be called a 'mid-cap' company. Not even small-cap, let alone penny-stock or 'early adopter'. And this is for a 'company' that in this case hasn't even released its first product yet (so its 'early' in that sense of having no product yet, just not so early in the sense of its price).
Just to put things into perspective for you.
Is it right to compare it to a stock though? It's not intending to be a company, if the team fulfil their vision it will be much more than that. I agree that in many senses it's overvalued considering it doesn't have a working platform yet, but investors are taking a risk based on potential, and the quality of Dan's previous projects
Sure, the comparison with stocks is just to give one/some perspective. It's obviously tricky to compare these things with anything that's come before.
I am a big fan of EOS too... the developer of EOS has nothing to prove... look at bitshare and steem... where are they now. A savings grace... a light in the dark. If steem development last only a couple of month, what more we expect with EOS development takes year.
Agree!
You're bang on there mate, STEEM is an incredible blockchain so just imagine what EOS will be.
Where are they (Bitshares + Steem) now, you ask? At a much much lower market cap (price) than EOS, despite it not even being out yet.
But the vision for EOS is much grander and the potential is greater. Dan will have learnt a lot from the process of creating his other projects and I'm sure he will apply that to EOS. Also they have more than 1 billion dollars to invest in Dapp projects. It all looks very promising, but we will see...
Yeah, we will see ... my point was just, if you're saying "look at the success of Bitshares and Steem" as a predictor of success here, then it's worth noting that if you're looking at Bitshares and Steem in terms of marketcap success, then actually, it's not so clear that they are successful enough to warrant anything near EOS's current marketcap .... (and actually, because I think these two projects are more successful than their marketcap indicates, I hold both).
My other general question/concern is - what is the reason for creating EOS, rather than just improving say Bitshares with the new technology? i.e. what does this tendency for Dan to (by the looks of it) always jump to a new project, say about the prospects long-term of these projects? Is this perhaps why the marketcap for Bitshares is strangely low, given how promising it seems? I'm raising this more out of curiosity than necessarily as a criticism ....
I was referring more to the functionality of the projects and their actual usage rather than their market caps, which I agree, are lower than they should be. On the point about Dan jumping ship, I think EOS is a more ambitious project as it's aiming to be a platform that many other projects can run on top of it. If you were in his position and thought you could make a project on the scale that EOS is aiming for you would do it right? Why stick with STEEM when you can make a platform that could have thousands of STEEM-like projects running on it and make an absolute fortune doing so.
Thanks for an insightful post @tradewonk. It's free cost and phenomenal speed will trump Ethereum easily. I watch with great anticipation to see events unfold come June 18. The future is here and it's name is EOS!
This question is also for @tradewonk but do you keep your EOS in a local wallet or where?
Hardware wallets are the best! Check out one of my post top 4 hardware wallets.
I think a lot of the hype is justified, due to the fact that Dan Larimer has already created two extremely successful decentralized working products with a purpose and use-case to boot, unlike all the others trying to compete against Ethereum, so EOS isn't just another will exist someday shitcoin. 🐳
I totally agree. The free transactions is also massive in terms of gaining mass adoption
Quite right, quite right, a huge factor indeed!
This is a major reason I hold EOS.
It's got everything going for it, so you're making a wise decision bud.
Yo I really hope so! I just started my first IRA and have emergency cash in savings for once in my life by selling half my crypto a week or so ago. The dream is buy back some on dip/dive here soonish, collect more eos and neo(shameless subtle shill), then wait for my next goal to hopefully become reality - go EOS
Collect more eos and neo . HODL !!
tbh Im most worried about not owning bitcoin right now. I saw what happened to the btc pairs when bitcoin went bonkers last year and it doesnt feel right not being able to hedge against that.
I hope so! I just bought some more!
EOS will be the #1 coin by 2020! Staking rewards and airdrops are going to make EOS holders very happy. I'm so excited for the next few years.
Same thought
It's a real possibility, at least if it's going to do everything that the team claim. I can't see why it won't considering how good Dans other projects are
I would love to see EOS, and other new application centered coins succeed, as I believe both EOS and Cardano are huge players, but, I don't think EOS will make a huge impact anytime soon.
We see that in the crypto-space, name power means a ton, if it didn't Bitcoin would be nearly evaporated at this point. But, because Ethereum is already very established, and known as the "revolutionary" coin (which it is) it will remain the head of the application based coins. I simply don't think EOS will be bringing down the Ethereum behemoth anytime soon.
Good point. I vastly prefer the tech of EOS but I could see ETH being a better investment over the next 12 months. Long term though, the more capable platform will win and I don't see Ethereum getting mass adoption without free transactions.
The question is, what will Ethereum look like in 1-2 years, i.e. by the time EOS is really out .... given that Ethereum keeps being improved, how much of the tech issues with it will already be solved by that time? Whereas, for some reason, instead of continuing to improve say Bitshares, Dan seems to feel the need to keep creating new coins ... that for me is the big question-mark (besides EOS's already overly huge valuation) - even granting that Dan is some kind of crypto-genius, how long will he stick around on EOS before creating another new coin with even more advanced tech?
Whereas at least with Ethereum, Vitalik and others stay and keep improving it, and putting the tech advancements into Ethereum itself rather than creating another new coin.
So while Bitshares + Steem are very impressive (and for the record, I do hold them, as well as a tiny bit of EOS), it's worth noting that their market-caps are currently dwarfed by Ethereum's (and even by the totally unproven EOS's). This might further argue for the value of the creator sticking with one thing, building traction with it, and improving it, rather than always creating another new thing. So I'd be much more excited to see Dan say continuing to improve Bitshares, than always be off creating the new next-better-best-thing.
EOS is really amazing. I can't decide what I like more, Steem or EOS :( lol
While I definitely want to see EOS succeed, I also would like to see Ethereum succeed. I think Vitalik will be able to build a mobile proof of stake platform that can run on top of the existing ETH network allowing the transactions to scale to visa level. Then ETH can be hardforked to proof of stake promoting it to the same level of speed EOS will boast. Eth Alliance has the right business connections if they can prove scalability.
Ease of programming will make a huge difference in adoption as well. I would hope that SMT's surpass both in ease of use and distribution similar to Aragon's software. We the steem community will have to build this though.
Nah, ethereum suffers from design flaws and it's own success. They can no longer stop and redo everything from scratch. There is no way to make smartcontracts like the ones on bitshares, steem and eos and their scaleability looks worse by several factors even compared to bitcoin now. This was pointed out at the start by numerous people, even Dan Larimer, although he caught a lot of flak for it, because critique at ethereum was not allowed at the time. (Probably still isn't)
Having the world share a single mainframe on something as inefficient as a blockchain was always a weird design choice, but somehow a "world computer" with less computing power than a single smartphone is apparently worth billions. Unless you have some insider info, I'm not seeing how moving to POS will solve anything. I kinda hope for eos sake that ethereum doesn't collapse before the end of their fundraiser. I'm hearing some ridiculous things about what kinda hardware and network connection are recommended now to just maintain sync on ethereum (and how can they trashtalk btc-scalability at the same time when they know about these issues).
What I suspect is that a lot of people in the know are now handing over the bags of eth to unsuspecting people, seeing how the eos-token-auction is still going strong.
The "free" transactions on EOS will also be a massive advantage over Ethereum I think, especially when it comes to mass adoption. For example, I wouldn't be writing this comment now if I had to pay to post it. ETH and ADA don't seem to understand that.
Well you have quite a teetering point of view I've not heard recently. While scale capacity seems to be the primary criticism in regards to what qualifys as a viable economic platform. Bitcoin itself is held up entirely through public opinion on it's value. I think the values they promote and promise are the most significant in their evaluation since as you stated the software needs to improve.
You are obviously using the steem blockchain so you must consider it reasonable. If Bitcoin and Eth fail as you suggest they will cause the whole crypto market to collapse. Steem is unlikely to survive if reduced below a dollar per steem.
What alternatives would you suggest?
Steem has been below a dollar per steem several times before. It survived just fine. I started using it in July 2016 when it peaked at just over $4/steem. It dropped pretty low later in the year. Such that once I made it as the number three trending post. The only time in my history on the platform. I made about $100 :)
Months before that would have been in the $10,000 range and it would have been even more today.
But we survived. :) Steem survived and thrived.
Steem is backed by far more than just its price. It is also backed by our creations. That is a pretty huge asset for it that other cryptos do not share.
Though I also have been buying up some EOS over time. :)
Well that does sound a whole lot better than what @joeyd was saying. My thoughts were based around the possibility of bitcoin and ethereum collapse. I am certain that many people would stick with steem even when the bubble pops, so I'll amend my statement to say that it would reduce steem's network growth. But I'll be here so long as the servers are connected to me.
I'd love to work out a decentralized network to access steem outside of ISP'S
First of all take everything I say with a grain of salt. Ethereums DAO-bailout hardfork, was in my opinion the worst thing that happened in the history of the cryptocurrency world. I have no doubt that my disgust influences my view on it. That being said, we can continue with regular programming.
I was actually referring to even bitcoin having way less of a scaling problem than ethereum, despite just about all public statements from apparent ethereum proponents claiming the opposite (which in my view is more than a little disingenuous). I do believe bitcoins current roadmap looks to be in way better shape than ethereum, as in having an as small and efficient layer 1 as possible and then do layer 2 stuff on top of it like lighting (which is looking to be a more decentralized and anonymous payment network than ripple but without the IOU crap).
While ethereum might be able to also add a lighting layer, it suffers from it's layer 1 being way more inefficient and bloated in comparison. If smart contracts can be added on layer 2 similar to payment channels like lighting, then that would make ethereums layer 1 even more of a waste and exercise in futility. When the expert advise is for buying dedicated data centre level hardware as the way to keep your local node synced, you'd expect to see more people to start realizing that scaling on ethereum is a bigger issue then for btc with it's raspberry pi full nodes on spinning rust keeping up just fine.
Now that's just comparing ethereum to bitcoin. The next problematic design decision of ethereum is how limited it's smart contracts are. As Larimer has pointed out several times, things like bitshares' (and therefore steemits) smart contracts responsible for order matching are not possible on ethereum. The options of contracts interacting with other contracts are very limited. Which appallingly enough is conveniently disregarded by just about all the pundits hailing the world computer, but kinda makes it even less impressive than it already is.
Btw to put ethereums "world computer" in to perspective, people seem to forget that all the nodes are not adding any cpu processing power to the network they are just repeating it. They are all running the exact same operations. If someone would take the time to work out a comparison of the actual processing operations the network is capable of with a modern cpu/gpu you'd start to get the picture of just how disappointingly inefficient it really is.
What I appreciate about the design of bts (and as a result it's derivatives like steemit and eos) is that it always acknowledged that blockchains are just about the most inefficient way to do things, so the idea is to only do on the blockchain what you cannot do any other way. It also accepted that centralization happens and built in mechanics to not only deal with it, but to use it to increase efficiency but also to make it easier for the network users to keep track of it and tools to deal with it (limited number of witnesses and inbuilt voting mechanics).
Ethereum started out in complete opposition to bts take on pos (maybe also because Larimer publicly calling out Vitalik about ethereums scaling issues which are now very obvious) and lauding pow. While they now seem to have come around somewhat, their attemts feel weirdly half-assed to me. Admittedly I can't help looking at their move towards POS in the shadow of the DAO-sceme and its bailout. So I keep seeing it as another attempt at a powergrab or consolidation of their control.
I hope to be rid of the effect of the Rothschilds, Saouds and Vatican cum suis. Which is why I'm more than a little skeptical about ethereum. Sorry to say it the same reason I'm not without reservations about EOS. Block.one having so much influence is bothering me more than a little, but I can't argue with the design of and concepts behind EOS making far more sense to me than ethereum ever did.
I view us as using steem and steemit as actually the method of mining this currency. It is far more appealing to me than electricity and increasing need to buy new hardware to just do busy work.
Agree!
Very interesting. I personally haven't looked into EOS before. I just heard of it today, since I was writing an article on the public sale of "ArcBlock", which is also in some way seen as the competitor of EOS. But actually both differ since EOS is doing their own blockchain while ArcBlock is building on existing blockchains like Ethereum. I'm not sure whether I should invest in EOS or not. Probably gonna wait and see how it evoles, since there are so many projects ongoing which are also very interesting and could increase ones profit. Thanks for sharing @tradewonk. Always very nice and interesting topics you have and I'm becoming one of your biggest fans/subscriber.
The tech behind EOS sounds very impressive. Feeless transactions and the capacity to be vastly more scalable than anything else, even STEEM
So many of those projects are going to be build using the eosio software that's growing faster than any other cryptocurrency. Do some research on the project before you regret it later on.
I can tell you that i have invested in EOS, and in my opinion it will be huge before.