Effect.AI recently migrated from the NEO platform to EOS. This move has left analysts wondering if anything is wrong with NEO. According to Weiss Ratings, EOS has emerged as the leading platform for dApps in the past year.
Comments made by Effect.AI CEO Chris Dawe indicated that NEO had been adequate for the purpose of the company’s ICO, but growth and demand have led the team to greener pastures elsewhere.
The susceptibility of the NEO network to spam and malicious attacks are major drawbacks that Chris Dawe believes EOS will obviate. According to Chris, EOS provides a level of scalability, security, ecosystem, speed, and community that he feels will enable Effect.AI to thrive.
#NEO has been losing momentum and they are bleeding users into other platforms. And now, https://t.co/n6iIFV2zVO – one of its biggest #dApps – migrated over to #EOS. EOS is killing it right now, it launched to become the king of dApps and achieved that in less than a year!
— Weiss Crypto Ratings (@WeissCrypto) February 27, 2019
What is Driving the EOS Momentum?
In 2017, the co-founder of BitShares, Justin Fondriest said that EOS would be the most used blockchain platform on earth. While this did appear to be a boastful overstatement back then, the picture today seems to have changed.
To many analysts, EOS derives the bulk of its popularity from the community-driven initiative that has been built around its operability. So, while the founders have opened up the platform to global participation, the underlying features below are overarching:
- The presence of block producers (BPs) helps to secure the network and they are able to pocket earnings as they produce blocks.
- Owners of dApps hosted on the platform make money by rendering services on the blockchain.
- Other users can maximize returns on their invested capital by leasing bandwidth and computing storage to dApps that have market potential.
When the proponents of blockchain projects defer to recognizable platforms with clear and determinable use-cases, they surely know what they are talking about. Today, there are more than 2,551 dApps on the EOS blockchain.
Despite the brickbats thrown by those who describe the increasing number of dApps as unproductive since more than 90 percent boast fewer than 300 users per day. According to these analysts, only about 10 dApps are able to achieve more than 300 daily users.
The dApps narrative has changed since the EOS mainnet was launched in June of last year. Since then and leading names like Ethereum and NEO have recorded heavier losses than EOS. Some dApps have migrated to EOS from these platforms because of the perceived advantages it presents.
Decentralized applications and the platforms that they are hosted on make up a large portion of the cryptocurrency market. Distinguishing features of true dApps are as follows:
- Need to be open source by configuration. In simple terms, this means that the source code of the project is freely provided for everyone’s use. Each dApp cannot embark on changes without the majority vote of users.
- Must be essentially decentralized so that its data and processes are stored on a public blockchain. Any alternate cryptographic technology will be acceptable as long as it supports autonomy and does not follow a centralized authority.
- Must provide incentives to enable validators on the network to earn rewards. This can be in the form of tokens or other digital assets.
- Use a consensus protocol that ascribes a proof of value within the blockchain. This is what makes it possible for tokens to be generated and given a value. Cryptocurrency tokens are thus generated based on the consensus mechanism.
Could This Be a Rebound For EOS?
If the migration of dApps continues from other blockchain platforms to EOS, it could be the beginning of a serious rebound. While other mainnets such as Tezos, Tron, Stellar, and Cardano have their share of acclaim, EOS is taking the front row, currently. IOST mainnet launch is also scheduled for release within the next few weeks.
EOS hit the headlines for promising transaction speeds per second (TPS) that top the million mark. It also eliminated transaction fees and made it possible for holders of the platform’s tokens to lease bandwidth and computing capacity for rewards.
What are your opinions about the performance of the EOS mainnet so far? Will NEO be able to stage a comeback to compete in 2019? Please share your thoughts below!