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The EOS mainnet nightmare: How not to launch a blockchain network

In a year-long antecedent coin alms (ICO), Block.one raised $4 billion for its blockchain and smart affairs belvedere EOS.

It is worth noting that a host of such platforms already existed, but Block.one promised a more scalable band-aid for decentralized applications (DApps). The only botheration is, one year later, the EOS arrangement is still not a reality.

EOS’s mainnet launch was slated to happen on June 2, 2018. But almost a week later the blockchain is not yet live.

For those who do not know, mainnet is an acronym for the main arrangement of a blockchain platform. The EOS cryptocurrency was built on top of the Ethereum’s blockchain (a belvedere it aims to best), and the bill was to move on to its own blockchain with the mainnet launch.

EOS has accustomed boundless criticism pretty much since its birth for loopholes in its vision and, worse, in its beheading — but the mainnet launch has been a fiasco in its own right.

The whole saga began when hackers managed to gain ascendancy of Block.one’s Zendesk annual and used it send phishing emails. I accustomed one such email in my inbox, and I was almost assertive of its authenticity. No wonder, hackers could make away with millions of dollars of investors’ money.

Less than a week away from its mainnet launch, Qihoo360 — a accounted Chinese internet aegis firm — found several vulnerabilities in the EOS network. The bugs could allow hackers to remote ascendancy EOS nodes and attack any cryptocurrency built on top of its blockchain.

The aegis firm said that they notified Block.one about the vulnerabilities, and the aggregation promised to delay the launch until all bugs were fixed.

But afterward the media reports, EOS denied any delay advertence that the bugs have either already been fixed or are in the action of accepting fixed.

For a aggregation that just promised that all the bugs have been fixed, its next step was peculiar. EOS went ahead and appear a bug bounty affairs with heavy rewards for developers. Its HackerOne contour shows that bugs abide to be apparent and adored as afresh as yesterday.

It is, of course, a good thing that bugs are found and reported. The botheration here is that EOS appear the bug bounty affairs too late, when its aegis glitches already became public after the email breach and Qihoo360 reports. On top of it, EOS seems to have lied about vulnerabilities accepting fixed in time for the mainnet launch.

As if their aegis worries were not enough, EOS came up with a poorly drafted constitution (An older draft was even worse) for its blockchain, that ended up accepting criticism from computer scientist and cryptographer Nick Szabo.

The fact that EOS even has a architecture of this manner goes adjoin the idea of decentralization, but it is the words that do the actual damage, as Panek points out.

This is one of the clauses in the constitution, for example:

Article V – No Fiduciary No Member nor SYS token holder shall have fiduciary albatross to abutment the value of the SYS token. The Members do not accredit anyone to hold assets, borrow or arrangement on behalf of SYS token holders collectively. This blockchain has no owners, managers or fiduciaries; therefore, no Member shall have benign absorption in more than 10% of the SYS token supply.

The architecture has been drafted by the Block.one team. The fact that EOS will live by their words alone, it doesn’t sound like it has no owner. Addition thing worth noting in this clause is that no one is “allowed” to ascendancy more than 10 percent of the EOS cryptocurrency supply.

Coincidentally (not), that is the exact amount of the EOS tokens Block.one about owns. This is apparently the company’s way of saying that they do not want anyone to have more ascendancy over the EOS ecosystem than they have. It is addition matter absolutely that how do they plan to assassinate this clause for a about traded bill that anyone can buy and store in assorted wallets.

Other clauses in the architecture call for “monitoring,” “adjudication,” “penalization,” and “arbitrations.” All of these clauses accredit Block.one as a axial ascendancy administering the blockchain.

It is not just the architecture that is adopting worries about absorption with EOS. Their method of chief when they will assuredly launch their mainnet is similar.

EOS block producers (BP) candidates meet on video every day vote on whether or not the mainnet will be ready to launch the afterward day,” the EOS website tracking the mainnet status states. “The vote is cast as GO or NOT GO.”

Under the project’s accord algorithm — delegated proof-of-stake (dPoS) — a number of block producers are chosen to act as validators, which in EOS’s case is 21. The power of these 21 assembly is not just bound to chief when the mainnet will absolutely go live though.

As the annual of affairs from the latest Zoom call of EOS block producers shows, they even have the power to “print” new EOS cryptocurrency.

A poll is conducted in the middle of the meeting:

The majority agrees to print the EOS tokens and the accommodation is made.

The fact that EOS is absolution a scattering of people ascendancy vital decisions about the arrangement like this has accustomed severe criticism from cryptocurrency association on Reddit and Twitter. “This is hardly democratic, let alone decentralized,” is the accord on social media.

In my opinion, if blockchain companies can’t launch an actual artefact after adopting millions (or billions in case of EOS) of dollars, then enthusiasts can hardly accuse when critics argue that ‘blockchain is crappy technology and a bad vision for the future.’

If you want to know in case EOS finally launches its mainnet, you can track it here.

Published June 8, 2018 — 16:42 UTC

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