Cryptocurrency data analytics firm Omenics, in partnership with crypt research firm Bitassist, has published a report that provide unique insights into the competition among four blockchain protocols – Ethereum, EOS, Tron, Tezos.
Titled The Battle of Protocols, the report used metrics to provide meaningful insights into the current state of competition, including the number of transactions per second (TPS), the decentralization of governance, the number and distribution of nodes, various measures of on-chain activity or economic output and the community sentiment around the platform.
According to the report, while Ethereum, launched in 2015, remains the largest protocol by market capitalization, EOS, Tron, Tezos are gaining traction since launching their respective mainnets in 2018.
The report stated that TPS is one of the most critical components of a blockchain and the most intuitive way to evaluate the relative strength of the protocols. EOS currently has the highest throughput among the four protocols, boasting a capacity of up to 4,000 TPS. Tron has the second highest capacity, with approximately 750 TPS. Tezos and Ethereum are close together with 20 TPS and 40 TPS, respectively.
Regarding decentralization, the report said that Ethereum stands out as the most decentralized platform in the group with no single entity responsible for updates to the core code and also no formal option for transaction reversals. Tezos is the second-most decentralized protocol, requiring a minimum of 80% of all stake coins to reach consensus on appending the blockchain. EOS and TRON are both described as being semi-decentralized because the protocols only require less that 30% block producers to make decisions.
Ethereum currently has the largest number of active nodes, with over 5,000 online as of May 21, 2019. Tron is in second place with 1,289 nodes and Tezos and Eos are a close last with 78 and 72 respective block producers. According to the report, network distribution is extremely important when it comes to censorship resistance.
“Consider that one country blocked or limited access to the internet, if the network was hosted solely in that one country then no-one would be able to transact on it,” the report said. “The ledger would become redundant. The greater the geographic dispersion of nodes, the more resilient it is to state-sponsored attacks and the more valuable the network is an independent database.”
James Benett, director and co-founder of Bitassist, said that while Ethereum dominates as the most decentralized platform, its limited throughput has stunted further dapp activity.
“What EOS gains in performance capability, it loses in decentralization,” Benett said. “Tezos’ novel governance model has shown strong community ownership of the future of the code base. Tron, while owned by a private company, is the second most distributed platform by node count, second only to Ethereum.”
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