EOS Keeps Worrying Skeptics

20 June, 2018

EOS has set up a blockchain with governance - not worrying per se, as there are other networks that run nodes. Even the Bitcoin Cash and Bitcoin networks allow for personal intervention in very rare cases, where a transaction can be mined again by a trusted miner. But in the case of EOS, there are at least two known instances when user funds can be frozen and accounts revoked.

Ownership of EOS is defined in Article III of the interim constitution:

“The Members grant the right of contract and of private property to each other, therefore no property shall change hands except with the consent of the owner, by a valid Arbitrator’s order, or via community referendum.”

The latest freeze of seven accounts happened solely on the decision of the current set of block producers, instead of the entity called the EOS Core Arbitration Forum (ECAF). In the rules of EOS, block producers are not supposed to take those decisions - but they did anyway, due to an emergency with compromised accounts.

While the EOS community accepted this option as a way to secure user funds, others believe blockchain projects actually lose value if there is even the vaguest possibility that user balances can be frozen by third parties. Nick Szabo, Bitcoin developer, has been worried that EOS is compromising the chief principle of crypto coin ownership:


The Reddit community has also raised the matter of potential government interference and pressure to freeze accounts. One of the block producers, EOS New York, replied:

“We will refuse to comply and if necessary resign. We've set up our corporate structure in a way that protects ourselves and the assets of EOS New York as much as possible. We are saving Block Rewards right now so that we can build up a reserve. We have a very good law firm that we are working to put on retainer.”

Additionally, even with pressure against one block producer, the account freeze cannot be completed. And since EOS block producers are scattered globally in various jurisdictions, pressure on the whole network would be more difficult.

While the EOS launch went on and faced hurdles, the price stagnated a bit above $10. EOS is now at $10.27, with a trading profile supported most significantly by the Korean Won, with a 34% weight of trading against Tether (USDT).

Despite the criticism, the EOS market price has remained surprisingly resistant to negative comments. One of the reasons may be the ongoing elections, where around 23% of tokens have been staked for voting and temporarily suspended. The other reason may be a concerted attempt to support the price, which was suspected even during the period of daily auctions.

Source link   Crypto currency: EOS

LH-Crypto cashback and Marketing plans

This announcement is special for you. We follow our Roadmap and keep improving our cryptobroker. Finally, it's time for us to send Cashback payouts to our token holders....

Bitcoin Likely to Avoid Drop Below $3000

Over the past 48 hours, the Bitcoin price has stabilized at around $3,400 after dropping to a new yearly low at $3,210 on December 7. On a weekly basis, Bitcoin (BTC) is up six percent...

Leaders and outsiders of the Crypto world

Crypto market has lost not just a huge amount of capitalization and trading volumes, but also the faith of investors and enthusiasts. We have huge crowd of losers among...

Hackers stole $1 crypto billion in 2018

According to cryptocurrency intelligence firm CipherTrace's Q3 Cryptocurrency Anti-Money Laundering report, as of quarter-three, 2018, cryptocurrency thefts had...

Is it time to introduce strict ICO regulation?

Recently, Sirin Labs, an initial coin offering (ICO) project that raised $158 million during the bull market of 2017, made the headlines for its controversial pivot from a hardware-based...

Investing Tips For Crypto Bear Markets

Investing in cryptocurrencies can be overwhelming and difficult, especially during periods when a bear market controls the prices. To deal with it, let's discuss...

Block Show Asia 2018 report

Singapore has welcomed guests for another important crypto-event. The exhibition Block Show Asia 2018 brought numerous business contacts for LH-Crypto. The company presented new products...

Bitcoin is 43% More Profitable to Mine

When Craig Wright formed an alliance with CoinGeek founder Calvin Ayre to launch a hostile takeover of the Bitcoin Cash (BCH) network, the two men predicted that their BCH...