EOS Is Targeting ‘50,000 Tx per Second’: Mike Novogratz

EOS in recent days unveiled the latest version of EOSIO, which is V1.1.0. The release comes on the heels of a botched mainnet launch in June that left many believers doubting the project’s ability to deliver what it promises – scalability and speed for decentralized applications. But if you ask billionaire trader Mike Novogratz, who is at the helm of merchant bank Galaxy Digital, the EOS blockchain protocol, which is designed for enterprise applications, has only scratched the surface of its potential.

“It’s already doing 5,000 transactions a second. It should be doing 50,000 transactions per second in a few months,” Novogratz told TheStreet.com.

Novogratz, who previously ran nearly $9 billion in assets under management at Fortress, pointed to EOS’ unique delegated proof of stake, which was created by BlockOne CTO Dan Larimer (who is also behind Steem Blockchain and Bitshares). EOS has fewer than two dozen block producers, which combined with their “big computing power behind them” is what sets EOS apart from competing blockchains, Novogratz says.

EOS is the maiden project of Block.one, the latter of which Novogratz partnered with earlier this year for a $325 million EOS.IO Ecosystem Fund to be directed toward projects on the EOS platform. So he has a vested interest in seeing it fulfill 50,000 transactions per second. Scalability is a front-and-center issue for blockchains currently, with the Ethereum network targeting sharding and Bitcoin pursuing SegWit and the Lightning Network.

It’s been weeks since the EOS mainnet launch, and since that time the EOS coin hasn’t really impressed investors. While the EOS team boasts scalability and speedy transactions, the mainnet launch took longer than many investors were anticipating, which triggered a selloff in the EOS coin to its current price of approximately $8. But if EOS could bolster the number of transactions per second, that is the type of development that could send the EOS price back to its range of $13-$14 leading up to the mainnet launch.

Source: CoinMarketCap

EOS is the No. 5 cryptocurrency based on market cap. Stellar (XLM), however, which recently muscled Litecoin out of the way for the No. 6 spot, has momentum on its side. Stellar is the platform of choice for IBM to launch its USD-backed stablecoin. As a result, XLM, today’s modest declines notwithstanding, has seen its Relative Strength Index (RSI) soar to record levels this year. Still, XLM is hovering at a market cap of $5.4 billion compared to EOS at $7.2 billion. If EOS could recapture the confidence of investors, say with achieving 50,000 transactions per second, it won’t have to keep looking over its shoulder at XLM.

Featured image courtesy of Shutterstock.

Gerelyn has been covering ICOs and the cryptocurrency market since mid-2017. She's also reported on fintech more broadly in addition to asset management, having previously specialized in institutional investing. She owns some BTC and ETH.