EOS "poses a huge risk to entrepreneurs", says IOSToken co-founder Ray Xiao

24 Dec, 2018 | Updated: 24 Dec, 2018
by David Robb
Opinion
EOS poses a huge risk to entrepreneurs, says IOSToken co-founder Ray Xiao

One of the co-founders of IOSToken has recently criticized the EOS network. In an interview with CryptoBriefing, Ray Xiao claimed that the delegated proof-of-stake systems used by EOS means that it is too centralized.

IOSToken is a relatively new blockchain created specificially for the Internet of Services, and its crypto token IOST is currently ranked 61st by market cap. It is yet to launch its mainnet, although final testing is now underway. IOST eventually hopes to rival EOS, as the network with the best dPOS protocol. 

Read more: IOS Foundation releases v5.0 of the Testnet, not far from launching the Mainnet

Xiao claimed that IOST's new voting system "features several major improvements over Delegated Proof of Stake while avoiding the consolidation of power among early investors." It is this consolidation of power that he identifies as a major weakness in the way EOS operates.

Instead of nodes contributing according to their processing power, EOS holders use their stake in the network to vote for which nodes will be block producers (BPs). These BPs have a similar function to miners in PoW systems.

According to Xiao, the fact that "EOS only allows the top 21 voted candidates to become supernodes...could easily breed corruption and kill the flexibility of node switching in the network....This centrality makes it very challenging to build asset-backed stablecoin solutions, for example. It would need only eight supernodes to coordinate an attack. This poses a huge risk to entrepreneurs who want to build mass adoption products that require a trusted network".

Despite the promise that many see in EOS, this is far from the first time that it has been accused of being too centralized, and open to manipulation. Vulnerabilities in its code have also seen it pay out a huge amount in 'bug bounties' over the course of the year.

Read more: Block.one on 'EOS collusion': 'May vote with other holders to reinforce integrity'EOS accounts for two thirds of all bug bounties in 2018 - $417k in totalEOS tops China's final CCID rankings of 2019

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Read more about: IOStoken (IOST)

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