HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Weiss Ratings Downgrades EOS for Centralization

Altcoins 2019/12/07 22:30 by Christine Vasileva
EOS gets C- rating

The Weiss Crypto Ratings chart saw EOS slide down the ranks. Weiss downgraded the project, pointing centralization as the chief reason.


Weiss Moved EOS Down Straight to C-

Weiss Ratings downgraded EOS from B to C-, despite the favorable estimations in the past. The chief reason was the influence of big token holders, which could decide how to sway network resources.

The EOS blockchain gains its speed from the feature of only having 21 block producers, which transpire transaction information amongst themselves. Thus, spreading the latest state of the distributed ledger is easier, in comparison to Bitcoin’s feat of broadcasting to above 9,300 anonymous nodes.

The EOS Constitution also has special cases for blocking accounts – a feature which has been useful during hacks, but also means transactions can be censored centrally.

The concentration of resources in only a few hands meant “whales” could decide on allocating activities. This is also one of the reasons why the EIDOS token spread like wildfire, consuming almost all transactions on the EOS network.

Network Capable of Faking Activity, Hosts Parasitic Token

EOS is a network similar to older ones like BitShares, as well as Steemit. Those networks have shown that the influence of “whales” can be immense, and two nodes could even broadcast millions of free transactions.

Other networks like Lisk (LSK) showed that the election process for delegates ended up with voting power getting accrued in the hands of a few top delegates. All of them could vote each other into place, without resorting to regular user vote.

EOS trades at $2.75, gradually declining from the mid-year peak above $6.00. The coin has erased most of the gains for 2019 and is on track to fall to lows not seen since the bear market of 2018.

According to Blocktivity, the network carries more than 43 million transactions per day.

Most of those now belong to minting EIDOS tokens, while other transactions are related to distributed app activity. EOS has also seen accusations that most of its dApps are visited by bots, faking the real usage statistics.

What do you think about EOS’s latest crypto ratings (as per Weiss)? Share with us in the comments below. 


Images via Shutterstock, Twitter: @WeissCrypto, @enumivo

The post Weiss Ratings Downgrades EOS for Centralization appeared first on Bitcoinist.com.

0 Like(s)



You should also read...

Altcoins 09/12/19 11:35 by Graham Smith
Weiss Ratings Downgrades EOS to ‘C-‘ Due to Centralization – How Other Coins Measure Up
Weiss Ratings has downgraded EOS once again, taking its ranking from a B to a C-. The group cites “failure to decentralize,” “misallocation of resources,” and a congested netwo...
Read More
Altcoins 09/12/19 19:25 by Yashu Gola
EOS Price Hit after Getting a C- in Decentralization by Weiss
Blockchain project EOS started this week on a negative note after an independent agency downgraded its rating from B to C-. Weiss Crypto Ratings published a report on December 6 wherein it demoted EOS...
Read More
Altcoins 07/03/20 15:15 by Brenda Ngari
Are DPoS Blockchains Like EOS And STEEM Subject To Centralization And Takeovers? Weiss Ratings Weighs In
Blockchains using delegated proof-of-stake (DPoS) like EOS have always been criticized for centralization. The centralization concerns intensified after Tron’s Justin Sun purchased the Steemit plat...
Read More
Altcoins 28/03/20 19:40 by Brenda Ngari
Cardano Marshals A High Level Of Brainpower That No Other Cryptocurrency Comes Close – Weiss Ratings
Cardano, with Charles Hoskinson at its helm, is a cryptocurrency project that is based on science and peer-reviewed research to achieve a highly scalable and efficient system. Cardano aims to tack...
Read More
Bitcoin 26/04/20 18:28 by Samuel Wan
Tezos Outranks Bitcoin According to Weiss: Here’s Why it Doesn’t Matter
Tezos is one of the few cryptocurrencies that has managed to shine during these times of economic uncertainty. Indeed, multiple days of back-to-back gains have seen XTZ catalyzing calls for an impendi...
Read More