Ethereum is a smart contract platform designed to help developers build decentralized applications (DApps). It is currently the second-largest cryptocurrency by market capitalization and a hub for Decentralized Projects (DeFi). The blockchain uses a Proof-of-Work (PoW) consensus algorithm, same as Bitcoin, Cardano, Bitcoin SV, and other similar cryptocurrencies. Although Ethereum was known for fast and cheap transactions, things have changed recently with the coming of DeFi.
As it is the network that hosts most DeFi projects, it has been faced with several challenges, including a congested network, high transaction fees due to too much traffic and inability to scale. For this reason, Ethereum intends to change its consensus algorithm to Proof-of-Stake (PoS). This is believed to increase the scalability of the network to be able to handle more transactions per second than it currently does.
EOS is another smart contract platform that supports DApps and is therefore considered an Ethereum competitor. EOS’s strength is its ability to settle transactions in seconds at no cost. The team’s goal is to get it to process 1 million transactions per second, far more than what Ethereum can do.
As EOS processes transactions at such high speed, it is ideal for the transfer of value from one person to another. It is also more effective for interacting with DApps and smart contracts, as the cost of doing this is far less than that of Ethereum.
How PoW Differs from DPoS
The PoW consensus algorithm was the first to be invented, of course, because it is the one used by Bitcoin, the first cryptocurrency. The algorithm is used to mine cryptocurrencies by rewarding miners with new coins after they verify transactions. Miners utilize sophisticated equipment currently known as ASIC miners. These require an enormous amount of electricity to operate and maintain.
This is one of the shortcomings of Bitcoin that anti-crypto people have pointed out. Even if it is more reliable in keeping the network safe for Distributed Denial of Service (DDoS), the need for extra electricity and the difficulty of solving the puzzles in mining is a major weak point.
DPoS, in turn, is a consensus algorithm that does not involve the use of miners, neither does it require a lot of electricity. In this system, the community (holders of a coin) votes or delegates a number of people with the highest stake of the coin. These people take responsibility for validating transactions to ensure transparency and eliminate centralization.
Although the inventor of the algorithm, founder of EOS, and creator of BitShares, Daniel Larimer, thinks that a smaller number of validators will effectively take care of centralization, some crypto experts may argue that a larger number of validators is ideal, as there is a lower chance of compromise. This is why DPoS may be more vulnerable to DDoS attacks than the PoW systems, where there are thousands of nodes distributed globally, which help to secure the network.
EOS Application for Betting
EOS is good for facilitating fast and cheap transactions, which makes it ideal for betting on crypto casinos. Many online casinos now support the use of cryptocurrency, and 1xBit is one of the top ones. The website has more than 20 cryptocurrencies available, and the signing up process is easy after which the user can receive a welcome bonus of up to 7 BTC. The account on the platform supports several cryptocurrencies, and you can easily withdraw your earnings at no fee. 1xBit is also completely anonymous, so you can use it without having to reveal your identity.
Because of EOS’ characteristics of fast transactions with no fees, it is an ideal cryptocurrency for online betting, and if you are looking for a betting coin, this may be a good option to consider on 1xBit.