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EOS Mainnet Freezes Barely Two Days After Launch – Blockchain Activities Come to a Standstill

Trouble With EOS Yet Again as Blockchain Grinds to a Halt

Reports have emerged that activities on the EOS blockchain have come to a standstill with frozen transactions network wide. This development is the latest in a growing list of technical issues that have affected the EOS blockchain. In a related event, ICON, another blockchain project also encountered a bug, this time in its smart contract code.

Bug Identified and Software Fix is in the Works.

According to a tweet by EOS, the development team was alerted to a bug which caused network-wide transaction freezing. As a result, the recently launched EOS mainnet has been paused. A few hours later, the development posted an update that the problem had been identified. Block.one, the creator of EOS is reportedly developing a software fix for the bug. Based on the details revealed so far, the problem was a bug in the code that controlled how deferred transactions were handled.

At the moment, the 21 Block Producers (BP) on the blockchain mainnet have reportedly created a means to “unfreeze” the blockchain, in preparation for the bug fix. The expected upgrade to the EOS software which includes the patch will be tagged 1.0.5. Once released, the 21 BPs will carry out an update of their nodes, syncing with one another, after which, the EOS blockchain will be accessible to the public.

The news of the bug and the freezing of the blockchain has caused the price of EOS tokens to tumble by five percent. The token price at the time of writing this article is 410.38.

Another Technical Deficiency of the EOS Blockchain

Technical issues and bugs seem to be a recurring decimal in the grand scheme of things as far as the EOS blockchain is concerned. After a protracted mainnet launch saga, the EOS mainnet finally went live on June 14. Before the launch, there were reports of numerous defects with the code. One researcher even managed to earn about $120k in a week from identifying software bugs on the platform.

Apart from the bug problem, there were also concerns over the apparent centralized nature of the project. Many decried the fact that a limited number of nodes seem to hold all the aces with some even going as far as saying the project wasn’t decentralized. EOS is presently the highest earning ICO project, having raised $4 billion in its token sale. It is the fifth-ranked cryptocurrency according to CoinMarketCap.

Today appears to be a day for bugs in the blockchain world. Reports surfaced earlier in the day of a bug in the ICON smart contract which allowed anyone to disable token transfer transactions on the blockchain. The bug, an error in a modifier code fragmented was also identified in the YEED ICO project.

Is the latest setback another indication that there are severe problems with the project? Will this blockchain freeze adversely impact the credibility of the cryptocurrency? Keep the conversation going in the comment section below.

Image courtesy of Twitter (@EOSauthority) and CoinMarketCap.

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Weiss Ratings Loves EOS but Hates its Centralization

Weiss Ratings, the investment risk analysis firm, published an article for its subscribers in which they talk about the benefits and dangers of EOS.

We Still Love EOS. But its Centralization is a Case of Bad Breadth” is the name of the report written by Juan M. Villaverde. In it, he objectively shows some of the points that make EOS fail to be the “Perfect Blockchain.”

The first part of the letter explains that EOS is a great project, with a lot of potentials to become everything that Ethereum promised.

They recognize that EOS can easily “take the crypto world to the next level, and establish a foundation for the smart economies of the future.” However, it’s not enough to be excited just yet:

“EOS is the first fully scalable, complete, third-generation, distributed-ledger platform ever to be released to the public. I know that’s a mouthful. But that’s exactly what it is.”

For the author, the main problem with EOS is centralization. And it may be something so serious that it could jeopardize the promising future that lies ahead for this blockchain:

“The EOS dream will not come true until it fixes its centralization problems, which came into sharper focus with its launch this week.”

The report made by Weiss Ratings states that although the team behind EOS did its best to avoid this problem through an incredibly long ICO to promote better distribution of the tokens, in the end, they failed in their purpose, creating highly centralized crypto money.

The letter shows the irony of having a crypto with a high level of centralization running on a blockchain whose motto is “decentralize everything.”

According to official statements, The Team “identified EOS as a platform with one of the most centralized distributed ledgers in the world today.”

If someone adapts the Gini index to cryptos, the figures make it easy to crete a chart; the numbers will show that the level of centralization of the EOS platform is practically impossible, even more significant than those of authoritarian regimes.

The team dared to compare the results of the centralization level of EOS with the level of centralization of wealth in a “feudal kingdom with indentured servants.”

“The Gini coefficient, used by economists to measure wealth distribution of countries, when applied to EOS, comes up at 97 (on a scale of 0 to 100). Even if you recognize that crypto communities and countries are two different animals, the fact remains that any Gini coefficient above 60 is problematic.”

The EOS distribution mode could allow a small elite to control the process of creating and distributing wealth within the blockchain.

An explanation of Delegated Proof-os-Stake: – EOS´ consensual algorithm – also gives light to the problem EO is facing:

“Trouble is, EOS lets each token holder vote for up to 30 different candidates — all with the same tokens.

So if I own one million EOS, does that mean I can vote for 30 different block producers with the full weight of my one million? Yes.

And since there are only 21 block producers, if my buddies and I have a majority of the tokens, could I effectively run the whole EOS network? Yes again.

This is what I mean by a case of bad breadth. The wealth distribution on this network is narrow enough as it is. Allowing each token to be voted for up to 30 different candidates makes it even narrower. It opens the Pandora’s box to a possible situation in which a small elite can call the shots on the EOS blockchain.

And this is supposed to be decentralized?

No. This community has got to come together and ensure the decentralization needed to let EOS’ true potential shine through.”

Weiss Ratings: The Solution Lies on The Backs of the Community

Mr Villaverde concludes the letter proposing some solutions to this problem:

  1. Get rid of the 30-votes-per-token scheme.
  2. Allow for more than 21 block producers.
  3. Cap the voting power of large token holders to no more than 2.5% of the total token supply.
  4. Large token holders need to identify themselves.

In the end, as the report states, “the destiny of this project is now mostly up to its community.” Up to know there are no major initiatives to solve this problem.

Weiss Ratings downgraded this coin to a “B-” in the Weiss Cryptocurrency Rating, but remains strong with a market cap of $13,062,095,768, placing it in fifth place in the Coinmarketcap Top.Weiss Cryptocurrency Ratin

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$100k Up For Grabs With Tron’s (TRX) Bug Bounty Program

So what do you do when you launch a new platform amidst news reports of similar projects having security issues with their code? You do what Justin Sun just did by offering a Tron (TRX) Bug Bounty for any bugs or loopholes found in Tron’s New MainNet that is available for download on GitHub.

The rewards vary in value from $100 to $100,000. This might be because not all bugs are created equal. Some might be as small as an arithmetic error in a ‘none essential’ function in the code; or a full blown catastrophe where hackers steal funds. The time frame to find Bugs on the MainNet ranges from 1st June to 24th June and before the Genesis block is launched on the 25th of June.

Justin made the announcement via Twitter and had this to say:

Calling all developers! #TRON mainnet is live on #github and we’re offering up to $100K in #bugbounty rewards. Bring your A game. $TRX

Bug Bounty Flier By TRON

Justin has also invited all of us to join in the INDEPENDENCE of Tron by downloading the MainNet, dubbed Odyssey V2.0, on GitHub. This is an opportune time for any developer who believes in him/herself. $100,000 is a good amount for a few days of work behind a computer screen.

Justin also had this to say about the GitHub release:

#TRX $TRX #TRONSR A beginning of a new era. A CALL FOR INDEPENDENCE: #TRON main net Odyssey-v2.0 just released. Please join #TRON in @github and download Odyssey V2.0.

Tron Foundtion and Justin Sun can be lauded for being cautious with the launch. They first released the MainNet and invited developers to ‘mess around’ with it so as to find vulnerabilities ahead of the release of the Genesis block. This will prevent cases of where MainNet’s have been found to have issues after launch such as the Ethereum smart contract vulnerabilities that were discovered earlier this year.

Also to note, are the two hacks on Verge’s (XVG) protocol and the current issues with EOS’ MainNet launch where ‘epic vulnerabilities’ were found only days before the MainNet is to be launched on the 2nd of June. Perhaps what the team at EOS should do, is follow Tron’s example of having a bug bounty program before the actual token swap.