Six EOS Block Producers Could be Controlled by Single Entity

Despite all being based on the decentralized concept of the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term, many such projects faced allegations for being centralized, EOS being the latest.

EOS New York, a block producer of EOS, on Thursday claimed that six registered block producers on the network are managed by a single entity.

The allegations are backed by the domain registration information of all six block producers, which are registered under the name of the same organization or individual.

1/ Six registered producers on EOS are managed by a single entity. This is unacceptable. We have requested the signatures of the top 50 registered producers so that all token-holders may know who does and who does not condone such impropriety. Read on for evidence and the URLs: pic.twitter.com/5ZhFvOWqPB

— EOS New York (@eosnewyork) November 27, 2019

Flawed technology?

EOS is one of the major blockchain projects that is working on a Smart Contract Smart Contract A smart contract is a piece of software that automatically executes a pre-determined set of actions when a certain set of criteria or met. One of the key tenets of smart contracts is their ability to perform credible transactions without third parties and are self-executing, with their conditions written into the lines of code that form themAdditionally, these transactions are both trackable and irreversible. For example, a smart contract could be used to give royalty payouts to a musical artist A smart contract is a piece of software that automatically executes a pre-determined set of actions when a certain set of criteria or met. One of the key tenets of smart contracts is their ability to perform credible transactions without third parties and are self-executing, with their conditions written into the lines of code that form themAdditionally, these transactions are both trackable and irreversible. For example, a smart contract could be used to give royalty payouts to a musical artist Read this Term platform capable of millions of transactions per second with no transactional fees.

The project raised $4.1 billion in a year-long initial coin offering, becoming the largest ICO to date. It also attracted the attention of the Securities and Exchange Commission (SEC) under the suspicion of selling unregistered securities and was fined $24 million after settlement.

In the EOS ecosystem, block producers are equivalent to crypto miners or stakes in the different consensus mechanism.

Based on the delegated proof-of-stake mechanism, the network participants on EOS can stake tokens to vote for block producers as elected delegates. In addition, the block producers can also stake their investment in the network to form infrastructure and community support.

EOS New York now wants the removal of all six registered producers.

“We are therefore proposing the removal of the following registered producers: stargalaxybp, validatoreos, eoszeusiobp1, eosunioniobp, eosathenabp1, and eosrainbowbp,” one of the subsequent tweets by EOS New York stated.

EOS community also came forward to address the issue and some are pointing out problems with the consensus mechanism while others demanding reform in governance and voting system.

Earlier, Torn also faced allegations for being centralized by the former chief technology officer of the project.