Whiteblock Inc, one of the world’s foremost blockchain testing firms offering Blockchain Testing as a Service (BTaaS), has released a damning report on the EOS network. The benchmark blockchain testing project was requested by a number of companies, and it is the first independent benchmark test on EOS.
Whiteblock’s data has been used by entities such as Google, Microsoft, ConsenSys, Enterprise Ethereum Alliance, Maker DAO, MIT, Duke University, and Ledger Capital. They claim to be setting the standard for objective blockchain testing in a world where it is easy to make claims and generate investment without providing anything except a white paper.
Whiteblock blockchain testing – “EOS is not a blockchain.”
Whiteblock created a replica of the EOS network in September 2018 and, over two months, tested it under a number of conditions. The results from Whiteblock were not encouraging –
“EOS is not a blockchain, rather a distributed homogeneous database management system, a clear distinction in that their transactions are not cryptographically validated.”
“EOS token and RAM market is essentially a cloud service where the network provides promises for computational resources in a blackbox for users to access via credits. There is no mechanism for accountability due to the lack of transparency on what Block producers are able to create in terms of computational power.”
The results further indicated that the EOS throughput is far lower than what is claimed by the team and that it lacks Byzantine Fault Tolerance as well as suffering from consensus failures. Whiteblock also asserts that EOS is based upon a flawed model and that it is not truly decentralized, something that EOS has been criticized for in the past.
Continual EOS issues
Even before the independent verification of serious problems with EOS, warning signs about the ecosystem have been obvious. Crypto Disrupt previously reported about many of the issues concerning EOS. The network underwent a constitutional crisis, where the entire constitution is now set for a rewrite. This is mainly because of an event where block producers closed the accounts of people on the network who were held to be scam artists. Despite this being true, it is regarded as another form of centralization, where these block producers can close accounts without any kind of due process seen in any developed legal system.
A centralized authority is also in place, known as ECAF (EOS Core Arbitration Forum), to regulate disputes. But again, it is difficult to see how this is any different from a typical centralized regulatory authority seen in existing government structures. Additionally, EOS funds are held by a Cayman-based for-profit company.
Bitcoin developer Jimmy Song has recently stated that EOS will “die in a horrible dumpster fire” within five years and Satis Investment Group has released research indicating that EOS will lose 99% of its value within one year. The Whiteblock data is the latest piece of negative press for EOS and is a further indication of serious flaws in the dApp development ecosystem.
Digital Nomad with an interest in Zen and Blockchain technology.
Law graduate with 3 years experience as a consultant in the capital markets industry and 4 years experience freelancing on UpWork as a Creative Writer.