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EOS · 5w

EOS vs ETH: A brief comparison of dapps platforms

Among the first cryptocurrencies for market cap, two are the most important for creating smart contracts: Ethereum and EOS. The “smart contracts” are vital for the future of the crypto market, and, in this article, we’ll see how EOS works and what are the main differences compared to Ethereum.

What is eos token used for?

Both Ethereum and EOS were created to serve as platforms for the creation of smart contracts and decentralized applications (Dapps) for a broad range of uses. Ethereum was born as a system in which Dapps are built using Ethereum to access memory (by storing data in the Ethereum blockchain) and basic logic (a native protocol on which smart contracts are implemented). ETH users need to execute transactions to move their tokens and use Dapps. EOS was born with a different system. Using Dapps on EOS doesn’t charge any fees, but it requires three resources: CPU, RAM, and Network (NET). RAM and CPU can be obtained through staking (i.e., “blocking” EOS token for a certain period, see below), and NET can be purchased on the marketplace. In this way, EOS is not only a platform for Dapp but a decentralized system that you can access according to the amount of tokens you hold.

Mining and governance of EOS

Originally, mining in Ethereum was regulated by proof-of-work, a system in which several individuals (miners) compete through their computational power to confirm the blocks in which transactions are stored. This tends to guarantee a high degree of decentralization. Miners are paid with users’ commissions and generating new ETHs at each block. Ethereum is also planning its transition to POS, where the validation of the blocks is based on the vote of the users who hold the tokens. EOS adopts a third system, the Dpos. Simplifying, with DPOS (delegated proof-of-stake) users who own EOS tokens can “block” them and obtain (in addition to RAM and CPU) a voting power on the discovery of new blocks, in proportion to the number of tokens th...

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