Open-source blockchain interface MyCrypto has been discussing the congestion on the Ethereum network in a Twitter thread. Their analysis suggests that an unnamed exchange's technical issues might be encouraging scam activity, which is hugely slowing down the blockchain.
According to MyCrypto, the exchange in question has launched a new voting system to decide which tokens should be listed on it. MyCrypto doesn't mention which exchange as it doesn't want to give the free PR, but it does have some strong words about the voting system that has been chosen.
4/ Yup....you heard that right. ?♀️— MyCrypto.com (@MyCrypto) July 3, 2018
Not one vote via poll = one vote.
Not one person = one vote.
Not one token = one vote.
One deposit = one vote.
You'll never believe what happens next!!!1!
The allocation of a vote for every deposit made means that crypto companies can rig the system, making as many as possible in order to get more votes and get their own token on to the exchange. Known as a Sybil attack, this method of creating multiple pseudonymous identities famously affected the Tor network back in 2014.
The financial incentives for such an attack on an exchange hugely outweigh the costs of making multiple deposits. Incentivising more deposits to be made has possibly led to a huge amount of traffic on the Ethereum blockchain.
Not only this, but the exchange in question has also left itself open to the listing of a scam token, which is to say, one that is impersonating a legitimate one, as opposed to just being a shitcoin.
8/ In summation:— MyCrypto.com (@MyCrypto) July 3, 2018
Fuck exchanges, projects, or tokens that incentivize bad behavior, like Sybil attacks. Do not fall for their shit. ?
Instead, reward those who are building remarkable tools & communities responsibly. ?