Cryptocurrency has its biggest problem ever: Is EOS a blockchain or a cloud service?

Research activity by cryptocurrency benchmarking firm called ‘Whiteblock’ appears to have overturned the amazing performance of EOS token on its head.  Their research report indicates that EOS technical structure resembles that of cloud service built for computation and is not a true blue blockchain which includes a fundamental matrix for key metrics such as “imputation.”

EOS has been a blockchain protocol that has been taking cryptocurrency community by storm, in the past several months.  It had reached the evaluation of nearly 4 billion US dollars in the space of a few months based on its EOS token and the RAM market which focused on being centralized service providers.

 

ConsenSys orders research

The apparent research was officially commissioned by one of the key players in the cryptocurrency space – ConsenSys. The company is engaged in developing the virtual currency ecosystem and has been influencing the startup space with its uniquely positioned investment to encourage worthy projects from seeing the light of the day and in the long term creating the ideal crypto-based solutions for mass adoption.

Whiteblock research was commissioned to encourage the creation of a written format or framework for developing a base layer blockchain protocol.

White block study which is available with Hard Fork states that the benchmarking organization (whiteblock) engaged in practical testing as well as experimenting on the EOS platform in controlled laboratory conditions.  A comprehensive and objective model of EOS was developed after considering its design, performance, the economics it offered and the overall participation of the black blockchain community in the evolution of the EOS token.

The evaluator found that Ethereum and Bitcoin ways are far different from those practiced on EOS especially in the context of validation of block and the accumulation of rewards. There was no proof-of-work concept in the blockchain of the emerging protocol, and everyone could become the contributor and built the network. The default control to select the process transactions (Block producers) was retained by EOS. The method adopted for such selection was a complicated ‘voting process’ and is commonly known as the Proof-of-Stake method.

The elections are complicated and begin with the assumption that every token has one equivalent vote. Hence, EOS users with more ownership have a stronger presence in the voting system, and eventually, control the working of the network.

Whiteblock’s research included building an EOS model and running the exact software. The blocks which were produced by this experiment was found to have the same functions as the block producer on the mainnet itself.  As part of creating the lab environment, the provisional nodes on the controlled test environment and configuration allowed the measurement of the behavior and the ‘deterministic manner.’

The first test was apparently completed in September and in the past two months, Whiteblock was able to establish that that EOS was only a cloud service provider working to develop computational power and had the blessings of block producers to achieve success via the shortcut – Vote of Stake and overlook the very essence of Blockchain Proof of work and immutability.

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