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In the part-1 of comparison blog, we discussed Blockchain in general along with Ethereum and it’s applications. Now we will continue our discussion with EOS Blockchain.
EOS as Ethereum, a smart contract framework for a new architecture, in return for partial decentralization, offered greater scalability. A partial decentralization is an attempt at preventing both full decentralizations, where no party controls the system’s state entirely, and central controls on the system access, with downsides for a collection of administrators. This is the equilibrium of EOS with absolute centralization and decentralization, with 21 Block producers maintaining the system and with the token owners voting in Block producers’ choices. Block One has developed EOS and raised $4 billion in an approximate year-long Initial Coin Offering to build EOS. Examining the elements of EOS should explain how the project is significantly different than other blockchains. In order to keep its chain, EOS uses Delegated Stake Proof (DPoS) consensus algorithm. A series of 21 block producers are selected to form blocks for one round (approximately two minutes) through continuous voting. There are 252 blocks in each round, in which a producer of 12 blocks is chosen for each round. -holder of the EOS tokens must lock their tokens for a block producer, with up to 30 block producers voting on each EOS account simultaneously. Votes cast by votes held over a week are weighed down by around 1%, and unused voting expires after a period of two years. Every half-second, a new block is created, which adds all pending RAM transactions to the network. Once a block has been created, it is forwarded for confirmation to other block producers. On blockchain blocks receiving 15/21 votes are considered to have been authenticated. In EOS, a group of block manufacturers is authorized to reverse a transaction which distinguishes the project strongly from other systems in which such actions are not possible. Cleos for client interaction, Nodeos for data storage and Keosd for the storage of private keys which act as the source of interaction to the nodeos (DBMS) are three compound elements of the core EOS architecture. The main difference with EOS compared with the majority of public chains is how the accounts can be managed: they have a permission-based system similar to traditional databases in which block producers can increase or restrict user accounts access. Block EOS producers may be regarded as system administrators since they can either roll back or block a transaction, granted these permissions — but cannot alter the contents of a transaction. Companies, aware of these effects, typically opt for EOS private implementations, where they work as system administrators (block producers) in a single organization or a number of confidential actors. Such three components control all aspects of the system from wallets (where EOS token is held), contracts and actions (where logic is deployed), transactions (where state changes are recorded), to accounts (which is a history of all tokens, contracts, and transactions). It controls all aspects of the system.
The core chain protection at EOS is preserved until 15 out of the 21 block manufacturers are affected. EOS has a design philosophy that abstracts the bulk of cryptography and computer safety activities in order for developers to concentrate on core app development efforts. This design philosophy contributes to a secure application layer that protects connectivity between the user and the network. Apps also run the risk of bugs, but Block Producers can correct the situation by rolling the transactions back if they find malicious code. As already stated, given the information and determination of the block producers in the system at 21, confirmation is reached relatively quickly. Current EOS architecture has a 330-block delay so that the block/transaction is irreversible in approximately 165 seconds. Nevertheless, in fact, confirmation is almost instantaneous as blocks are confirmed in seconds and only considered to be final. In comparison, a transaction with several blocks of deep is considered “more” final than a one block deep one-block transaction in Ethereum which is determined by block height and not coded in a protocol. For rollbacks in the EOS, the original counter transaction takes the same time to make it irreversible. EOS pursues a similar route in public and private deployments like Ethereum. Companies such as Strong Block and EOS PRO worked to improve the data protection and security of the EOS implementations of companies.
Hyperledger is the Linux Foundation’s brainchild and is built to be a scalable corporate blockchain network. The program of Hyperledger is intended for use in a licensed or private network where the administrator (the member service providers’) needs to be added to each user. The appropriate architecture of Hyperledger offers a two-tier data-access system. Users have access to a certain portion of the network first and then.
Like Ethereum and EOS, Hyperledger is not a network codebase but a group of different Hyperledger implementations, each of which is suitable for a specific purpose:
- Hyperledger Burrow is a smart contract system based in Ethereum and carries out contracts based in Ethereum under approved architecture
- IBM’s blockchain computing network is identical to Ethereum’s Hyperledger framework
- Hyperledger Indy is a decentralized identity protocol using on-line key solutions and access management solutions across the company.
- Hyperledger Sawtooth is also an original blockchain application that calls for an Intel chip and an SGX environment.
In Hyperledger Fabric, consensus can be strongly customized to the needs of a client. Apache Kafka, Honey Badger BFT, and Simplified Byzantine Faults Tolerance (SBFT) are commonly used as consensus algorithms and BFT Smart. That individual consensus algorithm is a trade-off between speed, scalability, and validation (finality). The trade-off is that only two of the three algorithms can be performed simultaneously. In addition, other BFT algorithms provide an immediate finality, but with more nodes entering the network, consensus in the network takes more time. The network administrator should choose the correct consensus method based on individual application use cases. In some cases, custom consensus algorithms can be generated without the specific requirements of any of the current algorithms.
In all Hyperledger’s projects, Hyperledger comprises different architectures with design philosophy for each one, which makes every module inoperative for the entire system. The core algorithm needs to meet the two criteria of the cooperative layer: safety (all nodes should provide the same input in the same output) and liveness (all transactions should be handled by a live node in the network). The software has to authenticate every specific contract for intelligent contracts and deliver clear overtime outputs. Other system components should at least be inoperative and provide a safe operating environment. Since blockchains from Hyperledger are private or authorized, they usually sit behind a firewall of the business. This is important because the main safety aspects of the chain are not necessarily as good as those of public chains. Because safety and scalability are intrinsically intertwined, most businesses prefer relaxed safety on the chain by way of design. Apache Kafka, for example, compromising one node effectively stops blockchain, so while enterprises tend to maintain relaxed chain security, traditional security measures, such as software and hardware firewalls, typically protect individual nodes.
The confirmation may be instantaneous or it may take a couple of minutes to consider a transaction final, based on the consensus algorithm used. Most instances are designed to deal with specific application cases and therefore to adjust the overall experience to this speed. IBM maintains that over 250 organizations participate in the creation or actively implementing Hyperledger, due largely to the early marketing efforts of IBM. Hyperledger is the most widely used blockchain in the world. Hyperledger companies are in the industrial, healthcare, IoT and supply chain industries.
In January 2009, Bitcoin was released (PoW). The new concept of the mysterious Satoshi Nakamoto was launched in a white paper — Bitcoin provides an online currency guarantee, which can be protected, unlike government currencies, without any central authority. There are no actual Bitcoins, just balances associated with an encrypted public account. Over the years, regulators and government bodies have accepted the concept of virtual, decentralized currency. It is not a formally recognized medium of payment or store of value, but despite being regularly examined and discussed it has succeeded in creating an independent niche and continues to exist with the financial system.
Although the concepts of distributed ledgers and cryptography are used for both Bitcoin and Ethereum, they vary technologically in various ways. Ethereum transactions, for example, may have executable code, while Bitcoin transactions generally only have data attached to notes. Certain similarities include time blocks (Ethereum transaction checked by minutes for Bitcoin) and algorithms (Ethereum uses ethash, while Bitcoin is using SHA-256). The other differences are block times. Nonetheless, the overall goals of Bitcoin and Ethereum are distinct. Although Bitcoin was developed as an alternative to domed currencies, and thus an exchange and value store, Ethereum was intended to provide an irreversible and programmatic structure through its own currency for contracts and applications.
When a bitcoin block is released, miners start solving a puzzle which may vary as per the difficulty of the block. When the puzzle is solved, miners publish the block which is then verified by other miners.
Transactions in Bitcoins
The bitcoins that you send to someone were sent to you from someone else. When they sent them to you, the address that they sent it from was registered on the bitcoin blockchain (the encrypted and unaccessible register) as the transaction input, and your address — the address they sent it to — was registered on the bitcoin network as the transaction output.
When you send that bitcoin on to someone else, your wallet creates a transaction output, which is the address of the person you’re sending the coin to. That transaction will then be registered on the bitcoin network with your bitcoin address as the transaction input.
When that person sends those bitcoins to someone else, their address will, in turn, become the transaction input, and that other person’s bitcoin address will be the transaction output.
Using this system, people can trace bitcoin transactions all the way back to when the bitcoin was first created, understanding who sent it to who at any point in time. This creates a completely transparent system in which all transactions can be checked at any time.
The network runs on a proof of stake decentralized Byzantine fault tolerant (dBFT) consensus mechanism between a number of centrally approved nodes, and can support up to 10,000 transactions per second. The base asset of the NEO blockchain is the non-divisible NEO token which generates GAS tokens. These GAS tokens, a separate asset on the network, can be used to pay for transaction fees. The inflation rate of GAS is controlled with a decaying half-life algorithm that will release 100 million GAS over approximately 22 years.
A total of 100 million NEO were created in the Genesis Block. 50 million NEO were sold to early investors, with the remaining 50 million NEO locked into a smart contract. Each year, 15 million NEO tokens are unlocked which are used by the NEO development team to fund long term development goals.
Although the whole cryptocurrency industry is recent, Bitcoin is much older than NEO. Bitcoin was set up in 2009, similar to NEO in 2014. Since Bitcoin was developed five years earlier than NEO, NEO and many other cryptocurrencies began for a five-year span. That has helped it gain market share before many rivals had existed and the benefit of the first step. The NEO makers are well known.
Two Chinese developers developed NEO: DA Hongfei and Erik Zhang. NEO. It’s a complete mystery to create bitcoin. That’s because the person (or group) that generated bitcoin used an alias. Satoshi Nakamoto is this nickname. There are many conjectures about who could be Satoshi Nakamoto. Many people have been thinking about Elon Musk, Tesla’s CEO, PayPal, and other significant businesses. But Musk has denied such claims, and Bitcoin’s creator’s mystery continues.
Bitcoin has slowly become a long-term store of value, a form of “digital gold,” since 2009 when it was created. It is the King of cryptocurrencies and it is the cornerstone of many other cryptocurrencies. NEO is planned to be both a cryptocurrency and a network to enable intelligent contracts and decentralized applications and DApps. Technically, smart contracts with Bitcoin may be made easier, but Bitcoin is not recognized as the forum for these contracts. This role was played primarily by NEO and Ethereum.