Following a thorough benchmarking of the EOS platform, Whiteblock, a blockchain testing company, concludes that EOS is not a blockchain platform but a glorified computing service. The benchmarking firm, stated that EOS is more of a cloud service for computation rather than a blockchain. They also said that it is built on a centralized premise. For this reason, it lacks the fundamentals of a blockchain. The test was done to establish metrics for base-layer protocol benchmarking. According to the paper:
“After practical experiments and testing in a laboratory, our research provides a thorough yet objective model of the EOS network. We considered its performance, economics, and design in a bid to provide the blockchain community with a reference”.
The Flaw In The EOS System
EOS is a third generation blockchain that is different from Bitcoin and Ethereum. The difference is especially clear in consensus mechanisms. With proof-of-work blockchains, the public is allowed to contribute to block validation. However, EOS only allows a few entities known as block producers to oversee the voting process and the validation process. When these elections take place, the votes are equal to EOS tokens. So, those who have more tokens, have more control in the network.
Whiteblock created and ran a replica of EOS claiming that it works exactly the same as the blockchain. In an email exchange with David Canellis of TNW’s Hard Fork, the Whiteblock CTO said:
“It runs exactly like EOS. The block producers in the Whiteblock environment do the same thing as the block producers in the actual EOS environment. We arranged nodes in a controlled environment, and configured the network conditions in a bid to replicate real-world performance so we can measure their performance and determine their progress”.
EOS Price Today – EOS / USD
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The benchmarking company started the experiment in September. The tests were done in an isolated environment for two months. After the test, the firm concluded that EOS is less of a blockchain and more of a network that offers computational resources. These resources are stored in a blackbox which can be accessed by users. The company also claimed that the entire EOS system is built on a centralized network. The paper continued:
“EOS isn’t a blockchain, it is a distributed homogeneous database management system. Transactions on the network are not validated cryptographically. The EOS block producers are centralized and the users have the power to access the network through these block producers. This creates a single point of failure in the entire ecosystem”.
The paper stated that the EOS network isn’t as fast as it should be and can be manipulated by cartels. According to the research, there isn’t any ideal protocol that can be used for preventing block producers from manipulating the system to their favor. The network can be influenced by cartels and this can eventually lead to the crash of the entire ecosystem. There can be consensus failures at any given time leaving the network prone to manipulation by the block producers.
EOS (EOS) Price Analysis
Main while, EOS is currently trading at $5.33. This shows that the cryptocurrency is down by 0.53% against the USD and down by 1.32% against Bitcoin. Over a 24 hour period, the trading volume is $638,895,048 while the market capitalization is $4,831,482,248.
