As you know, I think that two projects, EOS and Cardano, stand a very good chance of becoming key infrastructure in our crypto future. And yes, I think the future to a large extent is crypto, meaning a lot of existing institutions will be disrupted.
For the lay person, I would summarize EOS and Cardano thus:
EOS represents engineering. It’s leader, Dan Larimer has built what I consider to be the two most finished usable crypt products, which do something other than serve as money. These products are Steemit, a social network, and BitShares, a decentralized exchange and lending platform. Both function as DAPPs – decentralized applications with democratic governance mechanisms.
With this experience behind him, Dan is building EOS, which would make it easy for other developers to build applications as sophisticated and complex as Steemit or BitShares.
Cardano represents science. It’s leader, Charles Hoskinson, has recruited some of the best academics in the world, and they’re taking a slow, peer-review approach to development.
Charles Hoskinson was closely involved with Ethereum, and worked with Dan Larimer on Bitshares before they had a falling out.
Cardano seems to be attempting to be both a medium of exchange, and a platform for Dapps.
Cardano is producing research papers that make it into prestigious conferences, youtube videos like this one about theoretic problems.
And lots and lots of positive PR.
In my opinion a lot of the PR is somewhat hollow, like this piece which is little more than a restatement of the basic value proposition.
I’m waiting for more.
There’s telegram chat has 15k users, but the content is mostly echos of their PR together with price speculation.
EOS seems to have a much bigger community of the people who matter.
The EOS governance telegram channel has daily intense debates about how voting will work.
The EOS developer channel has programmers asking about the latest releases and how to build application.
And the general EOS channel is about 38k people, and mostly features summaries of other channels and official announcements.
There are some hard feeling between Dan Larimer and Charles Hoskinson.
Dan Larimer has offered this specific criticism of the Cardano project.
After watching these products and communities for the past two months, I now believe more in EOS than I do in Cardano.
I believe in EOS so strongly in fact, that I’m maneuvering to be a part of the eco-system.
Criticism of EOS
Not everyone agrees with me, and you should read the criticism below before you decide to agree with me.
Here is an accusation that EOS is a scam, based on patterns of the token sale. (I don’t get this criticism because EOS is the only crypto I know that did its ICO as a year-long “dutch sale” which auctioned tokens every day, so that everyone in the world would have an equal shot at getting tokens.)
Back in August, Ethereum founder Vitali Buterin posted this criticism of EOS.
Recently, late night comedian John Oliver made this video ridiculing cryptos in general, and EOS specifically, mostly because of its flamboyant investor, Brock Pierce, who has since severed formal ties with the company creating EOS.
Another criticism of EOS which causes consternation is that Block One, Dan Larimer’s company building the software, is very vocal about promising absolutely nothing in exchange for the token. They insist that they are building open-source software and nothing else, and that the community will launch the actual blockchain in June, and that the distribution of EOS tokens is merely a hypothetical way to distribute the initial allocation of actual EOS tokens. This is justifiably enough to spook many people, but the reasons behind it are clear. There are completely different legal implications between a) building free, open source software which anyone can use to run a stock exchange, and b) running an actual stock exchange.
Block Producers vs Miners
Bitcoin, famously, uses “miners” to solve “proof of work” problems and build the Bitcoin ledger which is an example of a Blockchain.
To add a block to the chain, you have to outcompete the rest of the world in solving a math problem, which occurs about once every ten minutes.
EOS is different. It uses something Dan Larimer invented called “delegated proof of stake”. There are a whole bunch of servers on the internet which advertise that they want to be block producers. Holders of EOS token lock up some of their tokens as “votes”, and point them to any of the block producer candidates.
There’s no gigantic math contest consuming more electricity than the nation of Ecuador, as exists with Bitcoin. The top 21 block producers take turns writing blocks to the ledger.
My biggest concern with this effort is that “whales” (people who hold a lot of EOS tokens) will simply create their own nodes and self-vote. The fact that votes are cast not for individual BPs, but for clusters of 30 BPs may mitigate the potential of malicious whales.
Nevertheless, the Crypto Lions team is campaigning in the hopes of gathering votes from the general community.