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

  • Several instances where exchanges have attempted to buy votes have been reported here and here.
  • 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.
  • Upgrades of the protocol are only approved if financially favorable for the producers and governance activities are deprioritized.
  • 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.
  • The blockchain can still be trusted as producers are still financially motivated to produce blocks on time and according to the rules. Dapp producers and users can still trust that the blockchain will run as expected, but perhaps a bit less efficiently.
  • 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

  • Bob with 10 EOS and,
  • Alice with 20 EOS
  1. By renting resources through REX, the resource exchange on EOS, it is very cheap to get the network into congestion mode.
  2. Once congestion mode has been activated, it takes the network too long to return to normal operating conditions (20–30 minutes).
  3. 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

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

  • The Telos blockchain has successfully implemented a working WPS that could be implemented on EOS

5. 30ms transaction time limit

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

  • For an external group of people that does not already operate the top 15 BPs, the attack cost to buy enough votes to upgrade the network and attack it would cost approximately $800,000,000.
  • 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

8. Block finality takes nearly 3 minutes

  1. A new block is created which proposes the last block that has achieved 15/21 consensus
  2. When the new block has achieved 15/21 consensus itself, then the proposed LIB from that block is considered the LIB.
  • The BOS Core blockchain has been experimenting with this and managed to lower this to 3s. I am not sure how they have achieved this or if important compromises were made.

The 8 best features

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

2. Low latency 0.5s block time

3. Transparent standardized upgradeable smart contacts

  • one private key,
  • 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

  • Account creation
  • 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

7. The power of C++ in contracts

  • String manipulation
  • 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

Summary

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Blockchain and self-sovereign identity software developer and educator! https://jackandtheblockstalk.com

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Jack Tanner

Jack Tanner

Blockchain and self-sovereign identity software developer and educator! https://jackandtheblockstalk.com

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