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Weiss Ratings: EOS Downgraded Due to Centralization Issues

A number of ratings platforms have popped up over the past
year or two in the ever increasingly competitive world of crypto. Their
apparent aim is an attempt to compare tokens on various merits such as
adoption, technology and investment risk. Weiss is one of the more respected
ratings outlets and they have just dropped a bombshell on EOS.

EOS has had a bit of a rough ride recently. The Ethereum rivaling
token was pumped leading up to the highly
anticipated B1 event
last weekend. There was a lot of fomo in anticipation of
some big announcements when never really materialized. Since then EOS has
dumped over 20 percent to its current level.

Weiss Ratings has just added fuel to the fire with a recent
announcement stating that they were downgrading EOS due to
centralization issues;

“EOS DOWNGRADE: #EOS has serious problems with centralization, and their event last week did anything to alleviate that, so we’ve severely downgraded its technology score. It’s now up to #ADA to launch a truly decentralized #PoS #blockchain. No pressure.”

The tweet included a blatant pump for Cardano which has been
very slow getting off the ground in terms of development.

EOS Centralization Woes

The EOS centralization problem has been widely publicized. The system only has 21 nodes which check and validate transactions. Every 126 blocks 21 new nodes get elected by the stakeholders, this means that every round an elected node ‘mines’ 6 new blocks. It employs a Delegated Proof-of-Stake (DPOS) consensus model which means investors are rewarded with voting power and can decide who gets to mine the EOS blockchain.

The entire ecosystem is essentially built upon the EOS Core
Arbitration Forum (ECAF), which is effectively its ‘judicial branch,’ and the Block
Producers. The 21 elected block producers are rewarded with EOS tokens produced
by inflation, the constant voting process means that those BP candidates with
enough votes can replace current block producers.

It doesn’t end there. A recent report by blockchain
analytics firm AnChain suggests that most users associated with dApps are
actually bots. AnChain studied the top ten gambling apps on EOS and concluded
that they accounted for 65% of all transactions on the EOS blockchain.

According to Coingeek the results of the analysis show that
in the first quarter of this year bots comprised 51% of all unique accounts and
over 75% of all transactions. The firm added; “In other words, every day the
equivalence of $6 million USD in transaction volume is driven by bad bots.”

Since its 2019 high of $8.45 EOS has dumped 22% to its
current price of $6.57 despite a Coinbase listing. It has dropped down to sixth
spot being eclipsed by Litecoin which has surged
into fourth as halving fomo heats up
.

The post Weiss Ratings: EOS Downgraded Due to Centralization Issues appeared first on Ethereum World News.

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Ripple Beating The Banks, But Centralization Concerns Remain

Anyone that has made an international bank transfer will feel the frustration of waiting for at least a day and paying far more than should be necessary for something that can be done with a click of a button. Ripple is bridging that gap with RippleNet which offers SMEs a competitive edge for global payments.

The San Francisco based blockchain firm has taken to its blog to proclaim that “the world’s payments infrastructure hasn’t changed since the heady days of disco, nearly four decades ago.” Business operations are unnecessarily hindered by today’s archaic banking system built upon decades old infrastructure.

Businesses today need to plan for days of delays while banks and payment providers self-fund multi-currency accounts and pass the costs and over inflated foreign exchange rates and transaction fees onto their customers. A significant percentage can be lost sending money from one country to another going through a number of different currencies, the only ones profiting are the banks.

According to the company RippleNet speeds up transactions, reduces costs, and introduces a level of certainty to global payments;

“Using RippleNet, banks and payment providers can reimagine a payment from invoice to confirmed settlement for their clients. Just one small change, like the ability to drag-and-drop invoices as part of a RippleNet powered transaction, can have many benefits: it saves time with pre-populated fields, automatically confirms recipients for accuracy, and obtains real-time quotes.”

Smaller transactions in emerging markets such as Brazil, India, and China will benefit more from an international cross-border payments platform that doesn’t take days or cost a hefty slice of the remittance. According to the World Bank global remittance payments will grow by 3.4% or roughly $466 billion this year.

Ripple is currently at the forefront of the industry and has partnered with over a hundred banks and payments providers across the globe. It claims that it “connects all parties in a global transaction through a single seamless, frictionless experience. Built for the Internet age, Ripple delivers access, speed, certainty and savings.”

While this may be a service long overdue, crypto aficionados and cypherpunks claim that Ripple is as centralized as a bank and will still profit from these transactions. The company, however, argues the opposite claiming that the XRP Ledger ‘is based on an inherently decentralized, democratic, consensus mechanism’.

The key thing to note here is that Ripple is the company with products such as RippleNet, xRapid and xCurrent while XRP is the ledger working on blockchain principles used by other cryptocurrencies. The bigger thing to note here is that the company, or its executives, holds a massive proportion of these tokens which can enter or leave the market as and when they see fit and consequently have a huge influence on price.

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Tron (TRX) Future Plans for the WWW – Complete Decentralization

The current and existing management of wealth in the finance sector and its strong centralized nature has led to dissatisfaction by many. This has triggered the development catalyst inside of humans to go for the better. So technology and its applications have continued to grow, which marks the event of blockchain and cryptocurrencies to be real.

Not only the Financial Sector

Accordingly, with the development of blockchain tech its appliance can find different paths. It is turning out that the internet could be the right place. Large firms like Facebook or the search engine Google on a monthly bases are highlights of news of careless personal data usage.

With the unfairness taking place, blockchain-tech firms tend to explore decentralized solutions. One of them is the team behind Tron platform and its token running TRX.

The platform runs on the idea of storing the information on the network, which follows up with being save on the personal computer to whom it belongs. This way the centralized server-saving data is history.

This all is possible by the token TRX on the platform which is required to be in stock for the user. Which action would include both value to the coin and functional.

As there are no structural barricades for the above to happen, it seem like it can be possible. However, even if Tron reaches that technical potential to do so much important is still left to achieve. A revolutionary amount of part-takers, interest and adoption by global leading firms is required.

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Dash Cryptocurrency and the Secret Master Private Key – Could there be Truth About it?

The Dash project since its beginning was described in a curios understanding quite to a certain degree. Many rumors and discussions are surrounding the idea that the creator – Evan Duffield holds the “Master Private key” with the use of which many features of the network can be invalidated and roll back transactions.

To start explaining a recent event should first be take stage – Dash developers were notified about a bug on the network that could wreak havoc on the ecosystem. The best way around the issue was to disable the InstantSend service that allowed users to create anonymous transactions. Considering how this service is provided by masternodes, a lot of people questioned how the developers could effectively “turn off” the feature without introducing a client update or network fork.

This chapter did show how the developers have (at some degree) a centralized control over the network. The event was followed with questions and ideas on what else could be or is controlled by the developers or Evan Duffield having more control than others.

Very recommended is to check the Github repository and information on the concept. There is a line in the code that mirrors this ability to a person: “reprocess 24 hours of blocks to resolve any issues”. However this does not mean any nefarious action will be truly taking place. There are cryptocurrency enthusiast that have their own idea on the point as one Reddit user claims that this will alow a 24-hour roll back of transactions.

It is understandable by the community for labeling Evan Duffield for the claim and the responsibility for the “centralized (to a degree) control” over the Dash network. Despite that model would present a note very completed decentralized system, there is still a difference between being able to make modifications to protect the network and having a “master private key.” Such possibilities will always raise a lot of (valid) questions.

Gregory Maxwell once commented on Dash as follows:

“The other cryptographically-private altcoin that people talk about is Dash… but it’s not cryptographically private at all. I had a slide about this that was just “Dash LOL”. It’s snake oil. I’m beside myself about it, personally. What they have is a system like coinjoin, they nominate nodes based on proof of stake to be coinjoin masters, and then they have done this insecurely many times in the past I have no idea if the current version is secure. It’s not on the same level as zcash or monero; maybe it’s better than doing nothing, I don’t know. LOL, right?”

In the case there is presence of a “master private key”, future could not be looking so bright for Dash. For now however, this is all speculation and rumors despite there are information to back-up or initiate the idea.

Disabling some network functionality on a whim without any intervention by the community, a client upgrade or a network fork is pretty worrisome, even if it were done to protect the network as a whole. Sporks are an intriguing development in the world of cryptocurrency regardless. The current Dash roadmap plans to let masternodes control sporks, which will be a positive change overall.


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