The 8 worst issues and best features of the EOS blockchain

The 8 worst issues

1. The election of block producers (BPs) is no longer encourages sound governance participation

  • The governance and ecosystem contributions, quality of blocks and other activities of the current block produces are much lower than other better BP candidates.
  • The activities of the current block producers is difficult to find.
  • The distribution of producers has centralized in Asia, specifically China, where reports of collusion have existed in the past, and where most of the token holder wealth exists on crypto exchanges involved in these affairs.
  • Actively managing and governing the blockchain is deprioritized for cost-cutting.
  • Changing the rules to favor reputable producers is now very difficult.
  • With the concentration of production localized to a specific group that is in close collaboration, malicious collusion to attack the network rules is more likely.
  • Other blockchains using EOSIO software are experimenting with the election processes to reduce the available opportunity for corrupt what produces. The Telos blockchain is leading the way for EOSIO chain governance and will be an important one to watch in the space. Until the Telos blockchain reaches the same block rewards as on EOS, it is not possible to tell for certain whether it’s governance will prevent this issue.

2. Resource rate limits throttle the network and are unfair to the poor

Applies to all EOSIO chains.

  • Alice with 20 EOS
  1. Once congestion mode has been activated, it takes the network too long to return to normal operating conditions (20–30 minutes).
  2. During congestion mode, most normal users with low balances are unable to use the blockchain as explained in this issue.

3. RAM price changes without altering the supply or demand of RAM

Applies to all EOSIO chains.

4. The high-inflation capital model fund is not being used properly

Ths blockchain has an annual inflation rate of 5%. 1% of this is used to remunerate block produces and allows for free transactions. The other 4% was meant to be allocated to a smart contract that would fund projects and initiatives in the EOS ecosystem. This system, called the Worker Proposal System (WPS), has never been implemented and the 4% inflation rate remains unused.

5. 30ms transaction time limit

Applies to all EOSIO chains.

6. The protocol upgrades only need 15 block producers to approve

There are two types of upgrades for the EOS blockchain and both types of upgrade require only 15 of the current 21 elected BPs to approve the change.

  • The current top 15 block produces could conceivably make this attack today, but it seems likely that if this were to happen an off-chain consensus would be made to remove the tokens of the producers and accounts that voted for them which comes to the same cost of $800,000,000, so is also a very inconceivable scenario.
  • Upgrades of the protocol are done in a transparent way so detection of a malicious attack can be detected immediately

7. Smart contract upgradability is limited to a custodian model

Applies to all EOSIO chains.

8. Block finality takes nearly 3 minutes

Applies to all EOSIO chains

  1. When the new block has achieved 15/21 consensus itself, then the proposed LIB from that block is considered the LIB.

The 8 best features

1. Accounts and money are all ground-level features you can program with

Applies to all EOSIO chains

2. Low latency 0.5s block time

Applies to all EOSIO chains

3. Transparent standardized upgradeable smart contacts

Applies to all EOSIO chains

  • a multi signature of M of N keys or accounts,
  • time delays,
  • or even can be set as none upgradeable by removing the permissions of an account

4. Protocol upgrades are transparent and easy to coordinate

EOS is a governed blockchain. The Delegated Proof of Stake mechanism allows and expects that the block producers do more than just run the blockchain. They are chosen as delegates to ensure it’s sustainability. That means implementing upgrades to the governance rules to ensure the system is as fair and sustainable as possible. The rules are defined in the system contracts such as:

  • Contract upgrades
  • Resource management and accounting
  • The EOS token
  • Premium names
  • Managing global inflation to pay for producers and other activities

5. It scales to at least 4,000 tps in practice, probably more

6. Free transactions

Applies to all EOSIO chains

7. The power of C++ in contracts

  • Vectors, arrays and other set types
  • Floating points (numbers with decimal places)
  • Operator overloading and templating
  • The huge amount of libraries (including cryptographic) that are available on C++

8. Smart contract data management with multiple indexes

Applies to all EOSIO chains

Summary

The scalability and the low latency are unique EOSIO characteristics in the blockchain ecosystem. This, combined with free transactions and a few other usability features make it the most scalable, user-friendly blockchain that exists.

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