There has been a mini-storm brewing in cryptocurrency circles with researchers at Whiteblock a benchmarking firm reporting that EOS is only a glorified Cloud service and not a ‘true-blue’ blockchain technology since it lacks the most vital characteristic of a decentralized blockchain platform ‘immutability.’ At the same time, a fresh report by Google on its Trends feature reveals that there are more netizens interested in the all-important ‘blockchain’ technology lately, with the search for the latter technology overwhelming earlier searches for ‘cryptocurrency.’ Thus, a standardization seems to be in the offing as more projects begin to cater to demand by users.
The original research to look into the working of EOS platform and its technology was commissioned by cryptocurrency incubator and mentor, ConsenSys.
What does the test report by whiteblock say?
Whiteblock which tested EOS by developing a prototype found out that,
“EOS is fundamentally the same as a centralized cloud computing architecture [client/server] without the fundamental components of a blockchain or peer-to-peer network.”
According to the group of testing engineers, the experimentation provided an objective model of EOS design and addressed the economics and performance.
ConsenSys had appointed Whiteblock to research EOS back in September, and the latter has been testing EOS for over two months.
The highlight of the report is that EOS transactions were ‘cryptographically validated.’
More interestingly, the issue is with respect to EOS is that the project does not stop block producers from increasing their presence on this platform and gaining additional votes to influence decision making.
The main principle of EOS is proof-of-stake overriding the industry practice of Proof-of-work to establish ownership.
More importantly, Whiteblock found that in optimized settings the speed of transactions could not be higher than a 250per second, and that EOS wrongly marketed itself as offering 4,000 TPS.
Additionally, ConsenSys has said that it has received an expression of interest in further research and study focused on EOS by other industry players such as Microsoft, Ledger Capital, and University-based research commitments by USC, MIT with funds.
BIOT in the making
In the meanwhile Google BI via its Trends has now identified that there is an increase in searches for blockchain over that of cryptocurrencies. Industry research by the likes of Aftrek Market Research, a New York also indicates that there is a $254 billion marketplace for Blockchain Internet of Things (BIOT) by the year 2026.
The issue of Technical platform
Thus, as the investor and user community show increased interest in blockchain technologies, it becomes crucial for the industry to be able to categories platforms on the basis of the technology they use. Hence, the issue of EOS appears to be one of the early-stage problems which the industry will have to put into perspective so as to ensure there is uniformity in practices; much like the latest round of outcry given out by Russian regulators for a consensus-based regulatory system across the nations.
ConsenSys along with Whiteblock has announced that it would allow the tests on EOS by the benchmark organization to stream live in November. Other members like BHB network’s Zucco too concur with Whiteblock’s findings that EOS is cloud computing service with advanced computing power.