EOS and the governance issues faced by the Blockchain after migration to mainnet

[boynman]

1. The main network EOS problems

     For nearly a year, EOS has existed without blockchain or technology. Instead, it is a token is released on blockchain Ethereum and sold through an ICO lasted a year. The total market capitalization of the project increased from not up to more than 5 billion dollars in a short time. This is a fairly large value for a project with no active code.

     May the truth, things have steadily improved when the team announced the launch of the main network EOS a few weeks ago. Currently, the token coin was transferred ERC20 EOS dug in the main network's original block. This process is driven by several, though not token would also have to be confirmed at the present time.

     The EOS token currently standing as the fifth cryptocurrency by coinmarketcap. The EOS is trading on Huobi.pro with exchange pairs: EOS/BTC, EOS/ETH, EOS/USDT, EOS/HT.

     But unfortunately, once the major networks announced the EOS has been delayed a few days due to security concerns at the last minute. The blockchain must be absolute privacy is extremely important to avoid going on the other big issues.

     Although the delays on air cause any major problems, now it looks like the major networks are some of the cons after being launched. While this is not rare in the world of blockchain and money coding, it still caused concern by here is a network worth several billion dollars and it faced more trouble during the sensitive time like this.

     According to the article on the Medium, the top manufacturer of 21 blocks, and notes of EOS meet a big problem. The major networks had stopped all activities to identify and rectify that error. This process takes some time, and an hour after the pause, the last network, the node also stopped to be backed up. Five minutes later, the blockchain continued to operate and everything back to normal.

     A few hours later, the EOS back operation success. The explanation for this was given by the group to the main Network. Seems like the block of 1027926 is where the problem started, and this problem is not too serious as people thought initially. Overall this is a positive development, although many people use the EOS had to adrenalin.

     More detail at EOS Block Producers: The Current State of Affairs - Huobi Talk Ep 36

2. The ECAF (EOS Core Arbitration Forum)

“By reference herein, the EOS Core Arbitration Forum (ECAF) (“the Forum”) is created to serve the Community by administering the Rules and providing customary support to the Arbitrator and to the administration of cases.

The Forum is managed by the active Arbitrators. It will author a transparent handbook (“the Handbook”) to document procedures, detail and the like. The Forum may appoint experts, translators, case managers, or arrange support from external forums.”

2.1. EOS freeze seven accounts

     When moved from ethereum blockchain sang blockchain EOS, EOS owners must register their new address for EOS. In the mayhem of the conversion process, some users being deceptive by the fraudster in the delivery of their own courses.

     With the nature of the money market, that means the user's encoding property will disappear permanently, although the crooks that cannot sell immediately the token. According to the rules of the EOS, all users have to bet 10 token EOS when blockchain was launched. To withdraw the token, users remove the coins bet, then start the process to wait 72 hours.

     Although many owners of EOS has reported the fraud, only seven suspected account for cancellation of the coins bet-the first step to making selling the token. Case 7 accounts located in the number of cases considered to cause dissent among users due to EOSIO Core Arbitration Forum (ECAF) regulations. But ECAF did not give any ruling whatsoever, because they said that he does not have enough authority.

     So, in less than 24 hours before the token being stolen are available for sale, BP has to act together, freeze the account until the ECAF could give a valid verdict to protect those who have purchased the legitimate token in the complete one year of ICO Executive Block.one.

2.2. EOS freeze twenty seven accounts

     After just a week of EOS network direct broadcast, communities are asking questions about the nature of its decentralization. Early last week, the manufacturer of 21 blocks network has verified the transaction and confirm the block has to freeze the accounts of seven EOS allegedly belong to the thief stole the money by scam users through deceptive acts or attacks the other.

     Think the first command has a lot of controversies, however, the Arbitration Forum EOS Core (ECAF) has sent a different command to instruct the manufacturer to freeze additional accounts 27.

     Emergency protective measures of the ECAF said:

     Accordingly, under the order, the manufacturer refused to handle the EOS block trades for the following courses and account indefinitely. (Until that announcement and the official guide of the ECAF.)

     On June 22, in 2018, the order was signed by Sam Sapoznick, as arbitrator of temporary emergency. The previous command to block seven Member also signed Sapoznick.

     There is a stop for the manufacturer, although it violates the Constitution AS the EOS, which delegates decided on that chain management for an arbitration body.

     Under article IX of the Constitution from the EOS:

     "All disputes arising from or related to this Constitution eventually will be resolved according to the rules of arbitration of the International Chamber of Commerce by one or more arbitrators appointed according to the rules above."

     On both orders, they say: "the Logic and reasoning for the order will be posted at a later date". The producers of the selected controversial block do not disclose any reason related to the accounts frozen. As for the previous case, EOS New York has to justify the decision by claiming they have to perform this step when considering carefully the evidence. However, for the current block, no one could offer no explanation.

2.3. Reactions From The Community

     Supporters of the move are happy to point out that this step is necessary to prevent the bad actors in the EOS Blockchain. However, skeptics pointed out that Bitcoin was successful right from the start nobody competent v. The community has started to raise questions about the nature of decentralization EOS and if it really is not trusted.

     In the original ban of 7 Member, Charlie Shrem, founder of comparative Bitcoin Foundation EOS with Ripple for the structure of their focus and the ability of a small group of people with enough authority to freeze the accounts. Ripple, in 2014 has introduced a feature called 'freeze' to allow the company to stop a movement of the XRP whenever they want to.

     1/No coin is fully decentralized yet, but some, like bitcoin are "on the path to decentralization." I was very bullish on EOS because I respect Dan Larimer and the team, however this is shameful. I am putting the EOS in the same category as Ripple.

      — Charlie Shrem (@CharlieShrem) June 18, 2018

      — @whalepool

      — @worbli_ceo

     If crypto mass adoption involves someone having the power to control, freeze or reverse a transaction.

     If it involves someone having the power to edit or reverse data on the chain.

     If it involves losing immutability.

     Then crypto mass adoption is not worth having.

     — Charlie Shrem (@CharlieShrem) June 19, 2018

     When another user pointed out that this step is necessary for the acceptance of electronic money series, Shrem mass acceptance statement is not worth if it involves loss of invariant.

     Some other Twitter users also said that the purchase of EOS token is a quick way to burn your own money. Others recommend that people do not try to hold the EOS that sell them.

     EOS has decreased significantly when the news broke out. At the time of writing, EOS has a price of US $7.69, lost nearly 9.91 percent in the past 24 hours, it is the reduced levels among the 10 top electronic currencies.

3. Big decisions are about to be launched

     Besides changing the block manufacturer, EOS faces other big decisions about following from Block.One, and by participating in the elections to block manufacturer, Block.One can talk up the more important decisions.

     § First, EOS has yet passed any decision on adjustment of the Protocol would, therefore, it has no official rules about how manufacturers should block conflict resolution.

     To remedy this situation, Block. One proposed a completely new Constitution. The new Constitution has a narrower scope than the Constitution due to the development community.

     Dan Larimer, creator of EOS and is also the co-founder of the One written in the Block. a post on Medium:

     "I found that if you give people the arbitrary power to resolve disputes as it still lies within the dispute and the judgment was given an arbitrary way."

     § Second, the proposed system is about to achieve results. The system that will allow the community to vote on the token payment was created in the course of inflation.

     On the issue of the time, the decision on the proposal can also be quite important in determining what the network needs.

     Even when Block.One avoids the vote in both cases, the manufacturer has the support of the mass they can still be selected and those who supported the block manufacturer that was able to track them.

     Kauffman said that: "the words of the Block. ' weight ' has One very large", but he also pointed out that the best way to Block development. One is to increase the value of their token. Users rank-and-file want to control the process will not achieve that. "They want to turn it into the string community."

     Catalini says, EOS is testing in a space blocked are not fully equipped.

     He and partner Joshua Gans explained in an article in the year 2016, which meant that EOS has reduced costs considerably verification, but now it faces a different cost: the cost of a network connection.

     Blockchain doesn't just go to the consensus, they also need to find a way to coordinate economic activities around the world. That is the cost to operate their networks. Catalini said: "it was one of those who really changed the market power and market structures."

     He added that:

     "That is something we have not really managed to be, that is the reason why you see too much of the wrong right from the start."

4. My opinion on the EOS

     In spite of many problems, I believe the EOS in the future will be a good one, and it is still a good investment.

     The EOS is currently trading on Huobi.pro with exchange pairs: EOS/BTC, EOS/ETH, EOS/USDT, EOS/HT. Please create a Huobi.pro account to be able to trade EOS.

     Read the Disclaimer: “The content of my article may contain useful financial information. Users are ultimately responsible for the investment decisions he/she/it makes based on this information. It is your responsibility to review, analyze and verify any content/information before relying on them. Trading is a highly risky activity. Do consult your financial advisor before making any decision. I do not responsible for any trading decisions.”

Keywords: Huobi Pro, Huobi Talk, EOS block producers panel discussion, state of the current governance in EOS