EOS is “Broken Beyond Repair” says Weiss Ratings after its “Degraded Performance” on Coinbase

Must Read

Eight Things in Crypto You Can’t Afford to Miss This Week

In this roundup, we cover China's market-rattling resistance to Bitcoin, the increasing drumbeat toward crypto regulation, the...

Why the Cloud Industry Needs to Become Greener

According to Energy Post, the Internet will consume 20% of the projected electricity demand...

Your Wallet May Not Be as Secure as You Think; Here’s What To Do

Remember the egregious breach that exposed Ledger’s entire trove of customer data to the public?...
- Advertisement -
Earn Free Bitcoin

The 8th largest cryptocurrency by market cap EOS continues to have “degraded performance levels” on cryptocurrency exchange Coinbase.

On the weekend, the San Francisco-based platform announced that it has temporarily suspended sending EOS while receiving the crypto asset on the platform will be delayed.

Meanwhile, buys and sells of EOS on Coinbase are “functioning normally.”

Downgrade of EOS

This very same problem with the EOS blockchain, Weiss Crypto Ratings said is what led them to “downgrade” the digital asset a few months back.

“EOS block producers are so blind that they blamed the exchange for their ‘shortcomings,’” said Weiss Crypto Ratings.

“When even one of the world’s largest exchanges has trouble using the blockchain, what do you think the experience is like for regular users? This is why we fear EOS is broken beyond repair,” the agency added.

The block producers of the EOS blockchain, it said are in “complete denial” and the way to go is to introduce a fee market.

Not the First Time

Even on Coinbase, it wasn’t the first time this month, rather the third. For the first time, it happened this month on Feb. 14, when Coinbase announced delayed EOS withdrawal requests. The incident was soon resolved and the exchange said it is “actively monitoring this issue.”

But just two days after that incident, yet again delays were encountered in EOS send/receives which were once again resolved the same day.

“We are currently working through a backlog of outgoing EOS transactions. Customers sending EOS from Coinbase to an external address may experience a delay before the transaction appears on the blockchain. Deposits, buys, and sells are unaffected by this incident,” announced Coinbase at that time.

Then, last week, the most recent one happened when Coinbase reported degraded performance with send and receives to be delayed. Although the exchange implemented a fix, the digital asset even now has got the sign of “Major Outage” beside it.

The exchange has the message “currently investigating the issue” put up on its website.

“Decentralisation, governance and EOS – a lost case?”

In another news, crypto exchange Binance released a research report on “Decentralisation, governance and EOS – a lost case?” where it talked about the largest recorded ICO ever that raised $4.1 million.

The delegated Proof of Stake (DPoS) consensus network it states is the “victim of its governance, where the largest EOS holders further consolidate their position and hold all the power.”

The report lays down how the EOS blockchain lacks mechanisms to structure the process of vote trading. In fact, the structure promotes “selfish acts’ ‘ where individual parties have the influence to change votes drastically.

Two-thirds of the EOS block producers (BPs) also have the “worst performance” among the total 21 BPs, the report said.

“All blockchains are voting machines where votes can be bought, whether by hardware + electricity or token ownership, therefore none are cartel resistant and all have control groups that can change anything. EOS simply better aligns interests between holders and operators,” is what Blender Blumer, the CEO of Block.One, the company behind EOS countered this with.

These are not the only problems of EOS, they are actually aggravated by several other issues like little transparency, changed block rewards, little resistance to Sybil attacks, -token-30 votes system, and low voter turnouts.

“No blockchain is cartel resistant, but EOS is aligned,” said Blumer.

- Advertisement -
- Advertisement -

Latest News

Sunday Market Analysis from Trendtracers

BTCUSDT. First impression is bearish, there seems to be yearly support at around 28k, We’re expecting more...
- Advertisement -Earn Free Bitcoin

Earn Passive Income with Nhash Cloud Mining Services

Cloud mining services are an easy way to earn passive income online. Although...

Afri-X and DigiShares Bring Tokenization to Africa

DigiShares is proud to announce its partnership withAfri-x.com to deliver the power of tokenization to Africa. DigiShares has licensed its tokenization platform to...

Racing For Heroes selects Gen2 Technologies as a Key Technology Partner

SPARKS, Nev., April 7, 2021 /PRNewswire/ -- Gen2 Technologies Inc. (the "Company") (OTC: MNIZ) is proud to announce that it has been...

Ken The Crypto tells You How to Get the Most out of the 2021 Bull Run

The year 2021 is what people call the "Bitcoin Year", and the reason is self-explanatory. This recent bull-run has brought...