With the increase in decentralized finance adoption, 2020 was a big year for smart contract platforms and their services. We saw the first stirrings of Ethereum 2.0, moving the network to a new verification method meant to increase transaction speeds while lowering fees, but how does this compare to “Ethereum killers” working to dethrone the king? One of the most promising smart contract platforms is EOS.
The blockchain network utilizes a Delegated Proof of Stake (DPOS) consensus mechanism to quickly and efficiently validate block transactions. EOS' usability has attracted many developers, with over 500 unique dApps already running on the network and many more under current development. Greater mainstream adoption of blockchain technology will bode well for EOS, which is positioned as a fast and scalable layer-1.
Like internet tools such as search engines (Google, Bing, DuckDuckGo) or social media apps (Snapchat, Instagram, TikTok), there are always multiple successful platforms in a specific niche. EOS is an established player in the smart contract industry, and while it may not be the market leader, it’s still a force to be reckoned with.
EOS differentiates itself from its competitors in several ways. The network has eliminated transaction fees and offers extremely high throughput of up to 1 million TPS, unachievable by most other blockchains. However, EOS needed to introduce superior applications on its network, which it worked very hard to accomplish in 2020. Thanks to the EOS network's many high speed, lack of fees, and ease of use, the platform has proven suitable for hosting applications from an array of industries and business sectors.
One such example, Mythical Games, is at the forefront of gaming and blockchain, leveraging the technology to create an open world multiplayer game using the EOS network. By turning gaming assets into digital tokens, gamers have full control of their collectible items, something not yet available across the gaming world.
Another popular application is Adnode, which launched on EOS to improve digital advertising. Using EOS, Adnode can automate digital advertising's reconciliation process, improving the interactions between ad buyers and sellers. With Adnode's focus on fraud and wasted spending in the advertising industry and Mystic's in-game asset initiatives, the EOS blockchain is capable of handling a very diverse set of applications.
In 2020, EOS was also used to create a suite of products focused on integrating businesses. As institutions feel more comfortable adopting blockchain technology into their operations, EOS has endeavored to cater specifically to this sector. With the launch of blockchain-as-a-service (BAAS) solutions, EOS is focusing on expanding its enterprise reach. EOS implemented new tools and services like EOSIO Premier Technical Support, EOSIO Blockchain-as-a-Service, and EOSIO Consulting. EOS even launched a virtual campus called EOSIO Training and Certification, a digital learning center where developers and businesses can better understand how EOS can benefit them. These additions align with EOS's strategic vision for greater flexibility, better compliance, better tooling, faster app development, greater security, and less friction.
EOS wants to enable platform growth, facilitating applications like Adnode to achieve a level of financial security through EOS grants, a direct funding program. It continues to build out the ecosystem, and there is a lot to look forward to. EOS recently had its CTO Dan Larimer step down, impacting the price of the native cryptocurrency, but that could make it an opportune time to get involved in the project if you think it has long term potential.
As famous banker and investor Baron Rothschild once said, “the time to buy is when there's blood in the streets,” a quote that embodies the “buy low, sell high” narrative of successful investors. Throughout the last bull run, many other competing smart contract platforms saw a large price increase, something EOS has not yet experienced, meaning its native asset could have room to grow as it enters a new price discovery phase.
It's never been easier to purchase EOS directly, with exchanges such as Bitfinex supporting a range of EOS-based markets. Digital payment platform Skrill also offers the option to buy EOS instantly using a debit or credit card. If you’d prefer to buy EOS directly from another seller, try P2P marketplace Crypto Locally.
Although it's impossible to say which smart contract platforms will be dominant long term, EOS is undoubtedly setting itself up for contention. As more applications build on the network, more businesses integrate their services, and more users take advantage of the platform's capabilities, 2021 may end up as a landmark year for EOS.