How is Ethereum (ETH) Connected with EOS?EOS is sometimes called the Ethereum killer because it targets the major flaws of the Ethereum ecosystem. In this article, we’ll find out how EOS and Ethereum are connected.
After the advent of Bitcoin, it didn’t take long for people to understand the potential behind its technology and from there started a phase of blockchain based project development which created some of the current crypto giants. Ethereum is and has been an influential blockchain project and its market situations have always reflected the overall crypto market’s sentiments.
EOS has become the talk of the hour due to its capabilities, the goal of replacing Ethereum, Mainnet launch, exposed vulnerabilities and suspected ETH sell-off staged by its team a few days ago. Things between EOS and Ethereum are evidently competitive as they aim towards the same objective which is facilitating the production of DApps (decentralized apps) on their platform.
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In this article, we shall dive into the details and point out where the major difference lies and discover the influence of EOS mainnet launch on ETH markets.
EOS vs ETH: Differences Between Ethereum and EOS
The structure, markets, and support behind each of these projects are quite different. Ethereum has been live and up since 2015. The core of Ethereum is a decentralized platform which runs smart contracts. Countless businesses and even enterprises have joined Ethereum Alliance in order to create applications for safer transactions, recording vital data on the blockchain.
EOS is, however, a newer project which operates using the same model as Ethereum, its launch is slated for June. Crypto analysts believe that being newer than Ethereum would give EOS an upper hand and provide them with a chance to better leverage the recent technologies and also increase the number of transactions per second. But all of these are speculations since all we know is what EOS aims to do. Despite the increasing hype around its platform release, there are no practical examples to back up their claims.
It’s important to keep in mind that both Ethereum and EOS have different target markets. Ethereum has become a successful blockchain project which is leading smart contract platform for organizations to build DApps in the industry of financial services.
Is EOS Really Ethereum Killer?
EOS is sometimes called the Ethereum killer because it targets the major flaws of the Ethereum ecosystem such as scalability, usability, and functionality with its newly developed technology. EOS will be launched using a DPoS protocol which will increase its chances to outdate Ethereum’s PoW consensus protocol. EOS has made it publicly known their DPoS network will allow their platform to hold 1,000 transactions per second which in case of Ethereum is merely 15 transactions.
But once we understand that all EOS has done is to promise its users greater efficiency and facilities, it’s going to be tough competing with Ethereum which already has numerous supporters all over the world due to its constant development and affordability. It’ll take EOS more than speculations, hype, and claims to take down Ethereum.
Impact of EOS Mainnet Launch on ETH Market
People who have been monitoring the global crypto markets can’t possibly miss the obvious Ethereum sell-off that took place on 28th May on Bitfinex. While Ethereum was trading above $570 USD this sell-off managed to shoot down ETH by 8.49% at the point of $515 USD within 24 hours. Analysts and news agencies tried to reach the bottom of the situation and ultimately tied it to EOS team.
The first tech site which pointed it out was trust node and they speculated that this crash could be linked with Binance recent addition of EOS/Tether pairs. According to their report, the trade took place at Bitfinex which is one of the largest and most influential crypto exchanges, for almost an hour and within that hour approximately 180K ETH was exchanged.
Since only one exchange (Bitfinex) was seen to be complying with the sell-off and not OKEx or GDAX therefore, it’s being suspected that there was either one team or one person who caused this crash which is most likely to be EOS. The EOS team was recorded to spend around 1 million USD on Ethereum just four days before this sell-off.
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Currently, Ethereum is gaining 1.33% as its trading at $582.19 USD and its market capitalization has touched $58 billion USD while the exchanged volume is $2 billion USD.
When it comes to EOS, markets are still in the red after epic vulnerabilities were found out by Chinese internet security giant 360. At the time of writing, EOS individual price is $12.24 USD and its total market capitalization has gone down to $10 billion USD.
This recent price manipulation has proved the CFTC investigation is required to save investors from such schemes. But it will be long before a definite step is taken. Crypto enthusiasts are hoping the current market situation changes soon with the EOS Mainnet launch. Many EOS supporters believe that EOS will be closing in on Ethereum in the days to come.
The article was written by Global Coin Report.