Introduction
Cryptocurrencies, once a niche investment space, have gained immense popularity in recent years. With the rise of Bitcoin, several other cryptocurrencies have entered the market. Tezos and EOS are two such cryptocurrencies that have been gaining momentum in the crypto world. In this blog post, we will be comparing Tezos and EOS to see which one is the better investment in 2021.
Tezos
Tezos is a decentralized blockchain network used for smart contracts and decentralized applications, also known as Dapps. It was founded in 2018 by Arthur Breitman, with the goal of creating a platform that is self-amending and can continuously evolve over time, without having to fork. Tezos holders have the power to decide on the platform's future developments by voting on proposals.
As of September 2021, the market capitalization of Tezos was around $2.2 billion, and it had a circulating supply of around 883.4 million coins. At the time of writing this article, the price of Tezos was $2.5 per coin.
EOS
EOS is a blockchain technology that supports decentralized applications, similar to Tezos. Its creators, Dan Larimer and Brendan Blumer, designed it to provide a scalable blockchain infrastructure capable of handling industrial-scale applications. EOS also allows its users to vote on block producers and make decisions about the network's future.
As of September 2021, EOS had a market capitalization of around $3.8 billion and a circulating supply of approximately 950 million coins. At the time of writing this article, the price of EOS was $3.96 per coin.
Comparison
Both Tezos and EOS are similar in their function - they both support smart contracts and Dapps. However, there are a few differences worth noting:
- Consensus Mechanism: Tezos uses a unique proof-of-stake (PoS) consensus mechanism that allows stakeholders to participate in the governance of the platform. EOS, on the other hand, uses Delegated Proof of Stake (DPoS), where stakeholders vote for representatives called "block producers" to validate transactions.
- Scalability: One of the biggest advantages of EOS is its scalability. It claims to be capable of processing millions of transactions per second while maintaining low latency. Tezos, while having high throughput, cannot match EOS's processing capabilities.
- Token Economics: The underlying economics of both Tezos and EOS are different. Tezos uses a self-amending mechanism, where stakeholders vote on protocol upgrades, whereas EOS uses a referendum system to make decisions. Tezos also has a fixed inflation rate, while EOS has a variable inflation rate that depends on block producer rewards.
Based on the above comparisons, it is clear that there are pros and cons to both Tezos and EOS. Tezos's self-amending mechanism is crucial for a decentralized platform, allowing it to evolve continuously over time without the need for hard forks. EOS, on the other hand, has a more scalable infrastructure that can handle industrial-scale applications.
Conclusion
In conclusion, both Tezos and EOS are excellent investment options based on their unique features. Ultimately, the choice between them depends on individual preferences, goals, and risk management strategies. One point to consider is that the cryptocurrency market is volatile and subject to change. Therefore, conducting thorough research and seeking expert advice is essential before investing.