EOS MainNet has finally reached its voting threshold after what is considered by many as a controversial MainNet launch.
The EOS MainNet launch was slated to take place on the 2nd of June but it was delayed a security research company 360 found some bugs in the EOS network. It later received a No Go Vote from the Block producers as the security concerns of the network continued to grow. The block producers claimed that they wouldn’t approve the MainNet launch until the EOS network is considered safe.
On July 9, the designated 21 block producers finally approved the EOS MainNet launch. The voting process which took roughly a week for them to reach a decision led to questions from all angles of the cryptocurrency space, with many claiming that the network should be more efficient after raising $4 billion in its ICO.
The hype around EOS
The whole cryptocurrency world was looking forward to the EOS MainNet launch due to the potential that the project has. The EOS blockchain looks to be a platform that will support decentralized apps (dApps) and smart contracts, similar to what Ethereum network is offering.
However, what makes EOS unique is the promise of solving the scalability issue which has been plaguing the ethereum network since it was created. Ethereum network has been working very well and project developers have been able to create and run their decentralized apps on the ethereum network. The network was however deemed too slow and at some point, it couldn’t handle some platforms like CryptoKitties which had millions of users on its platform.
EOS now set out to solve that scalability issue, with its solution to have only 21 block producers. This means that even though transactions have to be approved by all the nodes in a network, the EOS network has only 21 nodes, thus making transaction time faster, unlike Ethereum network that has several nodes.
The designated 21 block producers were elected by the EOS token holders and this is where the main problem of EOS arises.
Centralization is a big Issue for EOS
Weiss Cryptocurrency Ratings, just last week, stated that even though EOS is a very good project, it is heavily centralized, which destroys the whole decentralization idea of cryptocurrencies. In a blog post, the ratings firm stated;
EOS is a great project. It still merits a good Weiss Rating overall. And it still has the potential to do what Ethereum promised — take the crypto world to the next level, and establish a foundation for the smart economies of the future.
The firm added that EOS is the most centralized cryptocurrency at the moment, adding that “Identified EOS as a platform with one of the most centralized distributed ledgers in the world today.”
Weiss was able to reach this conclusion after reports surfaced that the top 10 coin holders control over 50% of the entire market. Since each EOS token holder is allowed to vote for 30 different block producers, it will ultimately lead to the whales determining who the block producers would be, with the community left with no choice than to accept that.
In the first instance, the market is heavily centralized due to the fact that a few whales control over 90% of the entire EOE network. It took the network nearly a week to vote for the 21 block producers, with the delay attributed to the whales.
On the second instance, having only 21 block producers make the network even more centralized even though the aim was to make it decentralized and faster to run with just a few nodes approving transactions.
The block producers took days just to approve the mainnet launch even though Block.one, EOS parent company assured the EOS community that everything is set and the network can go live. The EOS network is now controlled by the whales who possess more than 90% of the tokens and the 21 block producers who have to give their consent before major decisions can be taken regarding the network.
The hype that surrounded the mainnet launch which saw the price of EOS jump to $15 has since died down, with several investors showing dissatisfaction with the slow pace of the new blockchain launch and or the unbalanced voting process. The price of the fifth largest cryptocurrency has now dropped to the $11 region.
The road to launching the EOS network has been bumpy and full of controversy and with many doubting the efficiency of the network after raking $4 billion in its ICO, there is doubt over its ability to compete with smart contract and dApps leader, Ethereum.
Even though EOS is viewed by many to have huge potential, some developers and ICO token issuers would think it wise to stick with Ethereum for now until the EOS network is deemed better than that of Ethereum. With the way things are handled slowly in the EOS community, challenging Ethereum for the top spot might take a while