Unlike most cryptocurrency ratings published online, the Wise Crypto ratings have nothing to do with the current or future price of the currency. Whether or not a crypto is over or undervalued or priced today is completely irrelevant. Our research focuses on the sustainability of each project, the security, the use case, decentralisation, environmental impact, the technology, the scalability and the developers and teams behind the projects.
EOS Rating = 335/1000
Technology (0 to 300) = 125
- Speed (0 to 50) = 30
EOS has a theoretical transaction speed of 50,000 tps – that’s an average of 1.5 seconds per transaction. This is the first crypto to ever have passed VISA’s transaction speed which averages at 1,700 tps when it breached the 3,000 transactions per second mark during testing. That is why EOS is popular for its Mainnet speed.
There have been numerous articles disputing whether EOS is in any shape or form decentralised or whether it is even a blockchain at all. But with speeds like these we have to give high marks anyway.
On November 9th 2019 the EIDOS airdrop caused congestion on the EOS network and Coinbase had to step in to increase their CPU power on the network in order to process transactions. This puts severe doubt on the claimed tps. The price of transactions rose by 100,000% during these hours as well.
- Cost (0 to 50) = 5
In the EOS platform, there is no transaction fee, but there is a charge for the consumption of RAM used to store the data. For instance, to create a user, you will need at least 150 bytes which can be purchased at 0.0071 EOS (equivalent to $0.03). But still, there have been numerous complaints from the EOS community concerning the high cost of RAM. For example, creating a simple DApp would require at least 10,000 EOS worth of RAM, which cost around $65,000 at current EOS prices. This is quite high, and it’s a problem for EOS users. The platform should at least lower the cost of RAM to accommodate more users.
- Scalability (0 to 50) = 20
EOS solves the problem of scalability notorious in most blockchain projects through its Delegated Proof of Stake (DPOS) consensus algorithm. The transaction based on EOS.IO software is confirmed after an average of 2.5 seconds from the time of broadcast. The platform also supports the Asynchronous Byzantine Fault Tolerance (aBFT) algorithm for faster irreversibility. EOS implements consensus over events with nodes verifying the series of events that have occurred to keep the network running which allows it to scale up. For that, EOS can support 1000s of commercial-scale DAPPS, parallel execution, asynchronous communication, and separation of authentication from the action.
Following the network congestion reports on Nov 9th 2019 we have had to downgrade the scalability rating as there are serious doubts about the feasability of their scaling.
- Reliability (0 to 50) = 20
EOS reduces latency and maximizes performance by structuring each block (produced every 0.5 seconds) into sequential cycles. The cycles are composed of threads that run in parallel within cycles. This makes the platform reliable as it allows users to send and respond to transactions within single blocks and between blocks. Reliability is evidenced by the over 100 dApps currently on the EOS network, some such as PRA CandyBox consisting of over 6,000 daily active users. On the negative side there have been a number of high profile issues raised including potentially disastrous back doors and due to these issues we have to knock a lot of points off. Continued testing and security improvements over the long term will see this score improve.
- Environmental Impact (0 to 50) = 50
Unlike Bitcoin, Litecoin, and Ethereum, EOS consensus does not allow it to be mined. This means that it has a minimal environmental impact.
- Decentralization (0 to 50) = 0
EOS’s Delegated Proof of Stake (DPoS) is a tradeoff between scalability and decentralization. This means that the platform may be scalable, but it’s not fully decentralized. The platform is reported to have severe centralization issues that a United States-based financial research firm Weiss Ratings announced that it was going to downgrade it. Ethereum co-founder, Joseph Lubin, also admitted that EOS was not fully decentralized. It was operated by “21 crypto bros” who can collude and censor whenever they want. However, Block.one, the company behind EOS announced that it would launch a blockchain-based platform Voice that will improve decentralization by providing transparency on how the platform operates.
Security (-250 to 0) = -190
- 360 Total Security (-100 to 0) = -100
The EOS platform has a security problem where hackers can create smart contracts with malicious code during the attack and allow them to take control of the supernode network. This will give them access to the key, transitions performed, and collect personal user keys and other important information. The control over the supernode gives almost unlimited possibilities, including mining, receiving a reward, and adding an unlimited number of blocks. This is indeed a serious security concern, and the platform should come up with measures to alleviate such security issues.
- Potential for Being Banned (-100 to 0) = -50
EOS has not always adhered to all the set regulations. Even though it cannot be easily banned, in October 2019 the SEC handed Block One a fine of $24m for selling an unregistered security during its ICO.
Just like Ethereum, EOS facilitates the development of DApps, which is the future of apps. Never say never though.
- Network Vulnerabilities ( -50 to 0) = -40
The EOS network has had its fair share of network vulnerabilities as well. Several critical vulnerabilities surfaced leading up to the launch of the platform’s main net. One such notable network vulnerability is the chain security detected in early May, which was associated with the ERC-20 tokens. The error was referred to as “batchOverflow” and could lead to possible exhaustion of the entire huge limit of stocks of open smart contracts in a couple of transactions. Although that was fixed, other bugs have been reported over time.
Use Case (0 to 500) = 320
- Initial Main Use Case (0 to 100) = 80
EOS was initially launched as a platform for the development of decentralized applications (dApps), similar to Ethereum in function.
It was meant to bring together the best features and various smart contracts into one platform. EOS provides an operating-system-like set of services and functions that dApps can use. To date, it has lived to this promise with over 100 dApps currently operating on the platform.
- Mainnet Live (0 to 200) = 200
EOS Mainnet went live in June 2018 where it moved from the Ethereum platform to its own blockchain. This is after a year-long initial coin offering(ICO) where the platform managed to raise $4 billion for its blockchain and smart contracts platform named EOS. Since then, the platform has managed to hold over 100 dApps. The EOS coin also has a circulating supply of 1.02 Billion coins since the launch.
- Additional Use Case (0 to 100) = 10
EOS coin can be used as a means of exchange and can be exchanged with other cryptocurrencies such as BTC and ETH. Additionally, it can be exchanged with fiat currencies such as USD, JYP, and EUR. EOS price is about $3.40 with a 24-hour trading volume of $2,522,456,058. None of these can be considered a real use case however.
Crypto casinos are a valid, legitimate and active use case: there are currently no EOS casinos.
- Additional Working Products (0 to 100) = 30
Block.one, the company behind EOS is set to launch a social media platform built on the EOS platform. The platform will be called Voice and will make public everything posted to EOS. The platform will not be centralized as with Facebook or other social media platforms. Additionally, the EOS platform has numerous tokens including DICE, IQ, CUSD, Trybe, NDX, and ATMOS, which are used for various functions. Given the social media platform is not live yet, we cannot properly grant full marks for that yet.
Core Team, Partnerships & Developers (0 to 200) = 80
- Core Team & Developers( 0 to 100) = 60
The EOS project was created by a company called Block.one. The company is led by Dan Larimer (co-founder of both Bitshares and Steemit) and Brendan Bloomer. They both have immense experience in the crypto world and have been publicly active in promoting the technology as a whole in addition to their own projects.
- Partnerships( 0 to 100) = 20
Block.one, the company behind EOS, has made a strategic partnership with various organizations to assemble the most knowledgeable and capable advisors. The collaborations are intended to mentor and provide strategic direction to game-changing blockchain-based products and entrepreneurs around the world. Among the organization that has partnered with block.one includes Galaxy Digital, FinLab, EOS Global and SVKCrypto.
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