The HPB and EOS goals are similar, high performance, but their paths are completely different. EOS usese the same software as HPB — Parallel Processing but HPB goes a major step ahead & uses a combination of hardware and software, HPB has its own dedicated chip hardware server, which makes it theoretically have considerably higher performance.
HPB aims to solve the software bottleneck issue through the combination of hardware and software. The hardware mainly improves the performance through the following two solutions:
1, through the FPGA program and TOE algorithm transformation, to improve network throughput and network processing performance.
2. The encryption and verification functions are placed on the FPGA hardware level to take over the general-purpose CPU processing functions, increase the number of processes and reduce the number of interrupts, thereby significantly improving the processing performance.
In general, HPB’s consensus algorithm combines security, privacy, and speed through a combination of hardware and software. Using the BOE acceleration engine privacy, reliability, security, and high efficiency are achieved.
Transactions Per Second:
EOS will support at least 1000 transactions per second (tps)at start. This is reached using a 1-core implementation. The dev team expect 1 CPU-core to support up to 30k transactions per second but as security comes first the EOS Virtual Machine will aim to scale up to this number step by step.
HPB has currently achieved an incredible 10,000 tps without any hardware optimization, however, HPB is currently only in test net phase 1 (phase 1 is to test the network topology and the feasibility, security, and stability of the consensus algorithm only), the actual HPB tps with optimized hardware results will be tested in testnet phase 2 in May 2018, in theory the tps should be much higher using the optimized hardware acceleration engine and will overcome the tps bottleneck issues facing Software only projects.
Through cross chain scale-ability and theopen source HPB Hardware acceleration engine, the HPB virtual machine adopts a plug-in design mechanism and can support multiple virtual machines. For example, HPB can support Ethereum virtual machine. The smart contract on ETHvm can also be used on HPB.
Neo’s virtual machine NEOvm can also be used on HPB. When high-performance scenarios are required, users of both ETHvm and NEOvm need only a small amount of adaptation to interact with other HPB applications.
EOS also aims to scale multiple Blockchains but has disadvantage of not having utilizing the open source hardware acceleration engine, thus relying on traditional high performance hardware servers which are expensive with limited capabilities.
When the high-contribution value node or Master Node generates a block, it will receive a HPB coin reward from the system. From the design of the HPB, the system will issue a coin reward of 6% per year.
Master Nodes must hold a certain number of HPB coins (yet to be disclosed at time of writing) & own the BOE hardware acceleration engine which may be given to Master Nodes or sold at cost/production price, and contribute network bandwidth to the system(to be disclosed).
From the current election of the EOS billing node, we can see that EOS has high requirements on the hardware server performance of the master node, the cost is roughly estimated at around $160,000.00.
As far as the current understanding is concerned, the 21 nodes of EOS need to be equipped with traditional high-performance servers. The cost is high, and it is difficult for ordinary users to participate in them. It is inevitable that they will sacrifice decentralization.
The nodes that will participate in the book keeping of HPB in the future must all use HPB self-developed hardware acceleration devices. The self-developed HPB hardware has a very low price/high performance ratio. Everyone has the opportunity to participate.
The HPB hardware will take over the software performance bottlenecks whilst the hardware production cost is low. The performance of 1 software + 1 hardware >1 software and HPB community members have the opportunity to participate, which reflects the nature of the open source community.
Of course, the chip still has a threshold, but through the hardware acceleration of the server-driven HPB node will increase the speed of the entire network.
The dApp developers will love the high speed performance of HPB and will be able to run dApps & smart contracts for free on HPB, with free transactions, thus completely erasing the congestion issues and high fees that we see with the bottleneck issue of ETH for example where high fees need to be paid for faster transactions. dApps must however own HPB coins, this will increase the demand and the intrinsic value of HPB coin dramatically with this mass utility of the coin.
At the same time, EOS dApp developers will also need to hold EOS tokens to access the resources of the network. There are no transaction fees with EOS either which is excellent. So, how do they compete?
EOS has faced harsh criticism for raising such a monumental amount in it’s ICO which is still ongoing with the figure to date of $2.6bln in comparison to HPB’s ICO which raised less than $55mln, however, HPB even had to refund some of the private investors of their ICO due to a change in China’s laws with reference to restrictions of ICOs, yet this hasn’t held the HPB dev team back in R&D of the BOE hardware.
There are 2 ways to look at the dApps of EOS & HPB, let’s look at the pros and cons of each financially, putting aside HPB’s higher performance for now and the fact that they are both free with reference to transactions subject to holding EOS tokens/HPB coins:
EOS has set up a venture capitalist fund or VC. The VC is $1bln. The dApps that plan to use EOS have two choices: 1) they can set up a traditional Crypto ICO and raise their funds for development that way or, (2) The potential EOS dApp developers can apply to the EOS VC to fund their startup but in return they must airdrop the majority of their new dApp tokens to EOS holders. The pros of using the VC fund for the dApps is that the funding is quick and they do not need to rely on an ICO, this may attract many dApp developers. However, by needing to airdrop a majority of their tokens to EOS holders this will mean a scarcer supply, which in reality is great for EOS holders but not so great for the new dApps who will be looking to entice new business opportunities and may wish to keep the price of their tokens at a lower cost initially.
HPB had a very limited ICO funding in comparison and is not in a position financially to offer a VC fund, but do they need to? The interesting point with HPB is the low cost BOE Hardware acceleration engine. Any dApps wanting to develop on HPB will need to purchase the hardware; yet the open source hardware will be very low cost and will be sold at production/cost price, thus not having to rely on the 21 centralized master nodes of EOS that use traditional high performance computing hardware that is very expensive to run. So, in reality HPB dApp ICOs may need to raise less in ICO in comparison to EOS and will not need to give away their tokens to HPB holders, thus maintaining a great entry price for investors and businesses hoping to utilize the HPB dApps.
However, if HPB has a much higher tps and better network performance, the HPB coins will not necessarily remain cheap for much longer taking into consideration HPB’s low circulating supply and soon to be high demand for the dApps (which is also great for HPB investors).
In essence, both EOS & HPB will run dApps with free transactions subject to holding EOS tokens/HPB coins. Putting dApp set up costs aside as this is currently a very grey area, HPB dApps will be able to cope with higher volume and overcome the congestion issues related to the software bottleneck due to the optimized BOE hardware acceleration engine.
At present, HPB is an ERC-20 token because the main network is not until Q2 2018. After the main net, a wallet based on the HPB core chain will be developed and an ERC-20 standard token interface and time window will be provided for the exchange of Ethereum HPB.
Taken from EOS website: “ EOS tokens do not have any rights, uses, purpose, attributes, functionalities or features, express or implied, including, without limitation, any uses, purpose, attributes, functionalities or features on the EOS platform”.
EOS.IO has made it very clear that they won’t launch a public blockchain. They only make the software and leave it up to block producers (BPs) to start a network using the EOS software. Currently these BPs can not start a public network as the software licence doesn’t allow that without clear permission.
HPB use cases/coin utilities:
As previously mentioned; dApps running on HPB will be for free, however, all dApp developers will require HPB coins, the demand of HPB dApps will be very high, thus demand for the HPB coin will be very high, this will increase the intrinsic value of the coin dramatically with such a low circulating supply of coins.
HPB coins will be used for the gaming industry , the global gaming market reached US$109 billion in 2017. If virtual in-game commodities and assets are stored on the blockchain, encrypted digital currency such as HPB replaces virtual in-game currencies. Virtual in-game products can then be conveniently transacted between players without the need of a centralized game publisher, or a centralized organization such as Google Play or Apple Store. At the same time, decentralized virtual game currencies, and the sharing of the ledger transaction flow, can introduce real-world scarcity to virtual-world assets, thus introduce real-world value. Through the hardware and software architecture design, HPB supports a stable million level concurrency and can be widely used in the online gaming industry and for buying and selling other digital items. All transactions will be super fast and free of charge.
Anti-counterfeit traceability :
Information asymmetry results in difficulty in the traceability of products. Even with anti-counterfeiting traceability technology such as bar codes and QR codes, single-way traceability is gradually distorted in the communication process and counterfeiting. Technology has constantly evolved and improved. Blockchain technology with distributed ledgers, ledger traceability and its untraceable characteristics are naturally suited for anti-counterfeiting traceability use. HPB is currently exploring this field and is reaching initial cooperative intentions with partners and related companies
Partnerships and Investors of HPB:
HPB has a partnership with UnionPay China, and will collaborate with UnionPay Smart (the data devision of UnionPay) from Q3 2018. UnionPay is financially larger than Visa & MasterCard combined Globally and handles 80% of China’s transactions.
NEO has shown great interest in HPB and is an Angel Investor.
Banyan Network (BBN) is a strategic partner
CPChain (CPC) is a strategic partner
SharesChain is a strategic partner
Bottos (BTO) has a memorandum of understanding or MOU with HPB
Some members of the HPB team:
Wang XiaoMing is the CEO and has written 3 books on blockchain and is very well respected within the programming community. He recently won “most innovative CEO award of 2018”. He has also assisted in the founding of UnionPay Smart.
Zongru Wan is a member of the core team and has previously won a Nobel prize in physics and has previously worked at CERN.
Jinxin Li is the co-founder of HPB and is a senior blockchain analyst
Long Kai is an adviser and was the founder and previous Executive president at UnionPay Smart.
Shanlin Lou is the director of R&D & has experience in design of out-of-band system of server, including firmware architecture,hardware architecture,coding, debug. As PM, develop server peripheral equipment，including SKVM,SSD.
Currently, at time of writing HPB has 28 million tokens/coins in circulation with a max supply of 100 million.
At time of writing the market cap of HPB is very low at $108,037,086 USD.
If we take the market cap of EOS today of $9,366,608,817 USD and divide that by the current CS of HPB at 28,000,000 the potential value of HPB with the same MC as EOS is $334.52 per coin.
You will see that HPB is a mainly undiscovered Gem has a huge potential for growth and is incredibly cheap at it’s current value $3.64
EOS currently has 812,675,127 coins in circulation with a total supply of 900 million.
EOS Main Net is scheduled for June 2nd 2018 (Q3)
HPB Main Net is scheduled for end of Q2 2018
Thank you for taking the time to read, this is a very quick over view and I will be adding some links for the books on blockchain written by Wang Xiao Ming and some more information on EOS & HPB at a later date.