Meet EOS : A new cryptocurrency poised to take some of the attention away from Ethereum.
EOS is an Ethereum like blockchain technology, created by Dan Larimer. The same developer that created Steem and BitShares.
What are some of the main features of EOS?
Parallel Processing: The ability to do things in parallel, faster transcation speeds and more scalability.
A Constitution: A set of rules on which everyone agrees upon, these are linked to every block mined.
Self Sufficiency and Evolution: The current model allows for a 5% inflation, this will be used to develop the network further.
EOS is similar to a decentralised operating system, in practice this means that developers can build applications on EOS.
Decentralized Applications (DAPPS) Make EOS a Strong Competitor to Ethereum
A developer needs to have EOS coins to use the EOS blockchain. Developers will not spend the coins to use the server resources, he or she simply needs to prove that they hold them.
Here lies one of the biggest value propositions and one of the main differences between EOS and Ethereum:
According to my understanding of the model, where Ethereum requires ETH to use it's blockchain which they refer to as 'GAS,' a big difference lies in EOS in which coins are not burned up in the process of using the EOS blockchain, you simply need to be a stakeholder to use the network.
This incentives developers to hold EOS tokens forever and therein lies one of it's main values. This model is called POS (proof of stake) and I believe that Dan Larimer is a strategic genius that fully intends to capitalize on this difference.
EOS is in direct competition with Ethereum, an organization and cryptocurrency that demands users to pay for every transaction. EOS will not do so. This will result in EOS finding increased adoption.
What happens with EOS from here?
Currently EOS (as of July 23rd 2017) has about a $500 million market capitalization while ETH has about a $21 Billion cap.
This means that Ethereum has a first mover advantage in this field but EOS isn't too far behind to catch up. It all comes down to adoption and DAPP development. It is my opinion that whoever gets the DAPPs first and whichever company has first mover advantage in this growing industry of DAPPs will come out ahead. The race is too close to call but based on the success I've seen from Dan's other projects and the seasoned team of developers he is working with expect real competition in the smart contract / DAPP department.
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Sources:
https://www.cryptoninjas.net/2017/07/01/eos-token-sale-generates-185-million-first-5-days/
https://www.investitin.com/eos-ico-review-eos-good-investment/