How the UX Network Delivers Price and Speed That Make Ethereum a “Playground for Rich Kids” – Avalanche (AVAX/USD), Algorand (ALGO/USD)
In 2017, Block.one, led by Dan Larimer and Brendan Blumerlaunched the Entrepreneur Operating System (EOS) protocol, one of the first “Ethereum Killers”, aimed at supporting enterprise-scale decentralized financial applications for a global audience.
It offered the speed, scalability and comparative low cost that would put it well ahead Ethereum ETH/USD for most developers. Still, EOS had the mixed fortune of being somewhat ahead of its time, and not everything went to plan.
The EOS Network was run by Block Producers (BPs) who invested their stake in infrastructure and community instead of staking EOS tokens. This approach meant that BPs tended to be large consortia and difficult to add nodes and scale.
In 2019, the United States Securities and Exchange Commission fined Block.one $24 million for failing to register his initial coin offering.
“A number of US investors participated in the Block.one ICO,” said Stephanie Avakianco-director of the SEC’s Division of Enforcement.
“Companies that offer or sell securities to U.S. investors must comply with securities laws, regardless of the industry in which they operate or the labels they affix to the investment products they offer.”
EOS Telos and Wax forks continued to thrive, but development on EOS dropped 90% in 2020. According to DappRadar Dapp Industry Report 2020EOS had fallen to less than 4,000 active wallets.
In August of this year, the troubled history of EOS Network took a slightly more promising turn. After an uneven record of delays, broken promises and plummeting token prices, EOS block producers severed their relationship with Block.one and voted to pursue a new protocol to unite forks and block producers together. more powerful.
UX Network UTX/USD, bones TLOS/USD and Global Asset Exchange WAXP/USD have joined forces to create the Antelope protocol, the successor to the aspirations of the EOS network, poised to succeed where Block.one failed in its initial promises.
“I think it was really a revolt against Block.one. I think it never would have happened without the tacit support of the biggest block producers, mainly in China. Yves La Rose kind of led the charge. C he’s an operator, and he doesn’t mind being on camera,” said Daryn Soardsco-founder and CEO of UX Network.
Benzinga interviewed Guillaume Babin TremblayCTO of UX Network, and Soards for insight into Antelope’s current situation and where it is headed in this bear market.
This story is part of the content related to the Benzinga Future of Crypto Summit. The Future of Crypto takes place on December 7 in New York City at Pier Sixty.
Some of the best minds and most important projects in Web3 will be present, including Rarible, Cosmos, Yuga Labs, Solana, Laguna Labs, and Algorand. Keynote speakers include Jordan Belfort, Kevin O’Leary and Antoine Scaramucci.
BZ: What did it mean for the EOS community to break away from Block.one? How was the Antelope Coalition formed?
Babin Tremblay: “At one point the code was exclusively developed, maintained and hosted by Block.one. They call the release and activation of the Antelope protocol “EOS Independence Day”. This marks the day the community took over the codebase from the hands of Block.one. So it’s a new beginning. The code was already used by several channels, including Wax, Telos and UX Network. We partnered with representatives from each channel to see if it was possible to collaborate on the common code base that unites us. So we created the Antelope Coalition, which has four members – EOS, Telos, Wax and UX Network. We pooled resources and decided to fund whatever priorities these four channels considered the most important.”
BZ: How did you contribute to Antelope?
Babin Tremblay: “The biggest grant was given to Origin. We took half the budget to build and publish Inter-Blockchain Communication (IBC) which allows all chains to communicate reliably and scale horizontally by creating side chains It was part of our mandate.
The other part is what we call “instant finality”. It deals with the time it takes for a trade to settle when you make a transfer. There is a window of time during which transactions can be rolled back. You could potentially lose your funds if you were to buy something and deliver that something without waiting for confirmation. We’re writing an update to Antelope’s Consensus Model that will reduce finality from 3 minutes to just 6 seconds.”
BZ: What does UX Network provide that no other Layer 1 does as well?
Soars: “The most important thing we have that no one else has is a rational resource model. For the first time in crypto, as far as I know, we can essentially guarantee the cost of transactions for long periods of time, and we can value them in US dollars.
Ethereum is the best example of the problem – you have no idea what your transaction cost. You pay a gas fee that fluctuates depending on the condition of the channel, how crowded it is, and how many people are actually using it at the time. And on top of that, you have the price of Ethereum, which will also fluctuate, depending on market sentiment. Maybe today I can process 1,000 transactions for around $10. Tomorrow I can process only one transaction for $10,000. These are extreme examples, but they have happened in Ethereum history. And it creates a terrible user experience and prevents anyone serious from relying on these strings. Because the first question that people who create applications on these blockchains ask themselves is: “How much will it cost me?” How much does it take to make a transfer? How can I predict the cost of this resource? We are therefore the first to be able to ensure this consistency. The award will be the award for the next five years.
We have a much more flexible, rational and cost-aligned model. Nobody has that on it Ethereum. They don’t even discuss the requirements to run an Ethereum node because no one knows. How many transactions can you process? What kind of hardware can run this?”
BZ: How do you measure UX network throughput?
Soars: “We are building Yes Mechanics, a benchmarking application that allows you to test how well block producers perform in terms of actual resource availability and the number of transactions they can perform. This is one of the main reasons why Antelope is so fast. We have measured this information and tweaked the software over the years to achieve better performance.
There are protocols that claim speeds like 60,000 transactions per second. But they use multi-threading. As soon as we start using multithreading, our real number will be in the millions of transactions per second.
The most important thing is that we can align the price of resources with the cost of running those resources for block producers and network node operators. There is no way anyone can run anything at the enterprise level on Ethereum. It’s a playground for rich kids.”
BZ: How do you maximize speed and developer friendliness on your network?
Soars: “We built a resource model that is centered around resource usage. So it always responds to resource usage. But because it’s rational, it’s usable and anyone can understand it.
With all of these Layer 1 platforms, it will all come down to resource cost rationality. We have therefore adopted a rational internal allocation approach. So as soon as you get external capital flowing into this system, the capital value of the token will reflect that economic expansion. But without hurting user experience or resource cost, increasing the value of the entire system. We’re not trying to trap the value inside the string, which is the mistake all other protocols make.
With a standard Fat Protocol thesis, all the value is in the lower chain. But the world doesn’t work that way. If you are a Layer 1 network, you are not a price maker; you are a price taker. So it has to be done for the users.”
The last word
To be judged fairly, EOS Network must be seen in the context of its time: the ICO boom that led to so much optimistic crowdfunding, followed by a near-universal downfall and the failure of many projects. We must also remember that EOS was an early effort to achieve many of the same goals that many large “alternative” DeFi networks are pursuing today. These networks have the advantage of learning from EOS mistakes.
Large block producers who made it difficult to scale early EOS may have a solution to backing up the network’s original goals with the new protocol and the Antelope Coalition.
UX Network was created by one of the BPs to provide the scalability, speed and price control that EOS originally promised. By teaming up with the two successful forks, Telos and Wax, they have formed a hub and spoke model that most closely resembles Cosmos since it is made up of dedicated channels.
BPs have also learned from their past mistakes, and the focus on efficient use of resources has given blockchains like UX Network appealing qualities that could rival the likes of avalanche AVAX/USD, Algorand ALGO/USD and layers 2 like Polygon MATIC/EUR.
Whether the EOS partnership will help or hinder their efforts remains to be seen, but those of us who remember the early excitement around EOS will be watching to see if all the initial promises are delivered. They may have been ahead of their time in 2017 – maybe history caught up with them in 2022.