Last week when yet another avalanche was hitting crypto markets, the price of EOS shot up by more than 80% on nearly twice the volume. From a low of $4.62 on March 14, the value reached $7.02 on March 21st. It has since settled back to about $5.50 at the time of this writing. So what’s up?
It all relates to EOS.IO Technical White Paper v2 issued on March 16. The Twitter announcement told of a new blockchain architecture designed to enable vertical and horizontal scaling of decentralized applications. The release goes on to state this is as the creation of an operating system construct upon which applications can be built. The software provides accounts, authentication, databases, asynchronous communication and the scheduling of applications.
English Language Version
After breaking down all of these multisyllabic words, what EOS.IO sees itself is Bitcoin and more especially Ethereum on steroids. By using multiple threads that create transaction speeds that neither Bitcoin or Ethereum presently come close to, EOS believes they have created a better mousetrap. Obviously from the spike in price, ESO creator Dan Larimer isn’t alone in his excitement.
Potential Game Changer
While EOS may offers a few sleepless nights to fans both of Bitcoin and Ethereum, it the decentralized apps (DAPPS) that most emulates the Ethereum platform. For fans of EOS, it is a question if superior speed and scale described on the white paper can be delivered.
Most recently Bitcoin has been running about 7 per second, Ethereum about 14. These speeds do not take into account Bitcoin’s pending Lightning Network or Ethereum Raiden Network. While the “techno-sperts” I read have valid criticisms and compliments of both networks, there is little disagreement; speeds must improve or else.
The feature of the EOS platform is it’s promise to process over 100,000 transactions per second. That is enough to open the eyes of even the most skeptical crypto investor and no doubt brought a lot a attention to the March 16 White Paper.
The Flip Side
The nice thing about a white paper is how they all tend to identify an element to our imperfect world and then offer the perfect solution to fix it. EOS has a perfect solution for the current problem of lethargic speeds. However mass adoption still takes a reasonable period and during that time something called reality will disrupt the process.
EOS may have a promising technology but in the world of Fortune 500 companies they are virtually unknown. This is where the Enterprise Ethereum Alliance, now over a year old has been building up its brand. Why is brand recognition important? Because buzzwords like blockchains and dapps are running around C-suites faster than ever these days, most corporate executives have no desire to study the competition. They want to find a familiar brand that they can turn to if something goes wrong. Ethereum is building its brand. Probably only Bitcoin is better known.
Brand reputation takes time to build. EOS has what appears to be remarkable awareness and respect within the crypto community. However, nothing is a better brand endorsement as the recent announcement by Nivaura that we highlighted in our recent article on Ethereum.
For those who missed it, UK based Nivaura in partnership with Ethereum and Microsoft successfully performed the registration, clearing and settlement of a publicly offered debt instrument.
This has proved in a test case that the public ledger can be used to support regulated assets.
The blockchain is an increasingly attractive option as the payments industry continues to embrace cryptocurrencies and even digital fiat money.
When the platform catches it represents a paradigm shift in how investment products are designed, leaving third-party service providers and their hefty fees out in the cold.
The Ethereum participation in a project that offers to reduce administrative costs 99% is a huge brand builder in the eyes of Wall Street.
With no disrespect to EOS, its creators or their many fans, the road between white paper and sleighing the giant is a long one and there will be a few stumbles along the way.
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