Crypto War: EOS Vs NEO

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Crypto War: EOS Vs NEO

Pitting different cryptocurrencies against each other it is often a way to determine which is better. However, in the case of the EOS vs NEO, the real question is whether one will ultimately eliminate and replace Ethereum? Both EOS and NEO offer similar features to the primary smart contract cryptocurrency, but each adds its own improvements and functionalities.

The Ethereum Killers: How do their Technologies Work?

Ethereum’s overall performance is very poor, and even though its an improvement over Ethereum Classic, it still lacks the necessary features to support scalability. Critics of the cryptocurrency believe that Ethereum maintains its position as the second-largest token simply due to market speculation. Similar criticism is also directed to Bitcoin, which is significantly less efficient than alternatives, such as Bitcoin Cash or Litecoin.

Both EOS and NEO technologies allow their respective cryptocurrencies to process a larger volume of transactions than Ethereum. While ETH can process around 15 transactions per second, EOS can handle 1,000 while NEO can handle 10,000. Although this means that NEO can support the highest number of transactions, EOS transactions could be passed through an inter-Blockchain infrastructure which could, theoretically, support an unlimited number of transactions per second.

A key similarity between Ethereum, EOS and NEO is that they are all trying to dominate the decentralised application (DAPP) market. While Ethereum arguably has the most media exposure, it is actually EOS which has the most successful track record in this regard.

Today, Ethereum still uses the Proof-of-Work (PoW) consensus mechanism, and this limits its scalability. Both NEO and EOS operate some version of the Proof-of-Stake (PoS) mechanism.

The Market Situation

eos vs neo markets
Screenshots are shown for illustration purposes only. Actual product may vary.

Ethereum’s market dominance is evident, with a market capitalisation of over $20 billion and a trading price of around $187. EOS currently ranks 8th, with a market cap of just over $3 billion, whereas NEO ranks 17th with a market cap of just under $1 billion. The current trading price for one EOS token is around $3.50 whilst one NEO token costs an average of $13.

Part of Ethereum’s value strength is certainly due to intense interest by speculators. Whilst this cryptocurrency is available on a wide variety of exchanges and platforms, it is much harder to buy EOS or NEO. eToro is one of the largest platforms where you can buy all three cryptocurrencies, along with several others. An account with this global trading platform also provides you with access to a variety of financial instruments, such as Contracts for Difference (CFDs).

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Features Comparison

There are several similarities between the features offered by EOS and those offered by NEO. Both platforms are decentralised and provide developers with an opportunity to develop applications.

NEO vs EOS: Native Currency

Both NEO and EOS are the names given to their respective platforms and the cryptocurrencies which power them.

When NEO’s Genesis Block, 100 million coins were created, with half of these sold to early investors. The remaining balance was stored within a smart contract which releases 15 million coins to fund long-projects. Periodic and limited releases of funds help ensure that there isn’t a flood in the market which could hyperinflate NEO’s value. 

When developers use the EOS coin to build and run DAPPs they do not spend it, just stake it. Within the period of June 2016 and July 2017, 200 million tokens were distributed. Till now, 700 million tokens have been distributed, whilst 100 million are held in escrow for Block.one, EOS’ creators.

NEO vs EOS: Transaction Speed and Fees

Using the Byzantine Fault Tolerance (BFT) consensus mechanism, NEO can support the highest number of transactions per second when compared to both EOS and Ethereum. Nodes are randomly selected to process transactions on a network, but no fees are charged to users.

The EOS Blockchain is less powerful than NEO’s but has the opportunity to scale exponentially by using inter-Blockchain networks. This ability is significant as EOS seeks to tap into the Internet of Things (IoT) market in the future. Transactions with this cryptocurrency are decided by individual developers rather than Ethereum’s fixed cost schedule.

NEO vs EOS: Blockchain Protocol

neo blockchain

EOS.io, the name of the EOS Blockchain, relies on Delegated PoS together with a role-based permission system for transactions. This makes it significantly flexible, particularly when needing to freeze, rollback or fixing bugs in particular DAPPs.

NEO’s Blockchain protocol, BFT, allows any holder of the cryptocurrency to place a vote to determine the Consensus Nodes. Like Bitcoin miners, these nodes are the ones ultimately responsible for validating and updating new blocks.

Overall Verdict

It is difficult to accurately predict what the future holds for NEO, EOS, or even Ethereum. These cryptocurrencies play a significant role in Blockchain adoption beyond a P2P payment infrastructure. For this reason, they all have roles to play to help more businesses and organisations to start implementing this technology in their processes.

The efforts of the teams behind NEO and EOS have already started to bear fruit. The number of DAPPs and smart contracts which run on these systems is higher than ever before, and there is certainly great potential for it to grow further in the coming year.

Deciding a clear winner in the EOS vs NEO war is difficult, and choosing which cryptocurrency to invest in depends very much on what your ambitions are. If your goal is to support or use one particular cryptocurrency, then your decision is simple. On the other hand, if you are looking to invest in these cryptocurrencies in order to generate a return, the best idea is to spread your risk and diversify your investment.

By investing in both NEO and EOS you provide yourself with the best opportunity to reap the rewards of either cryptocurrency winning the war.

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