Accusations of Vote-Buying Erupt on EOS Network; Block.One Responds
- Huobi was accused of accepting money in exchange for its voting power as an EOS block producer.
Fears of centralization on the EOS network erupted this week when analyst in the crypto community began to wonder if the concerns that Ethereum Ethereum Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Read this Term creator Vitalik Buterin had laid out in a blog post earlier this year had come true.
A Twitter account operating under the name “Maple Leaf Capital” posted several screenshots of what appeared to be a leaked Excel spreadsheet containing evidence that China-based Huobi, one of the world’s oldest and largest cryptocurrency exchanges and an EOS block producer, was accepting bribes in exchange for supporting certain governance decisions.
— Maple Leaf Capital (@MapleLeafCap) October 1, 2018
The EOS network uses a consensus algorithm known as Delegated Proof of Stake, which means that the network operates with only 21 ‘block producers.’ These block producers are entities who have been elected to maintain the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term and add new blocks; just as in networks with Proof of Work and traditional Proof of Stake algorithms, these block producers are given token rewards in exchange for their work.
Damage Control is Underway, Despite Denial of the Allegations
Of course, Huobi has denied the accusations, and they are essentially unverifiable. However, EOS addressed the allegations nonetheless.
"We are aware of some unverified claims regarding irregular block producer voting, and the subsequent denials of those claims. We believe it is important to ensure a free and democratic election process within EOS and may, as we deem appropriate, vote with other holders to reinforce the integrity of this process,” wrote Block.one in an official statement on Tuesday. Block.one is the company responsible for developing the EOSIO software.
10/1/2018 Statement: EOS Public Blockchain Governancehttps://t.co/E5LTk6aWGz
— Block.one (@EOS_io) October 1, 2018
While the allegations are serious and cast a shadow on the EOS network, the practice of vote-buying hasn’t exactly been banned on the network. While there are statements against vote-buying in the network’s constitution, the constitution has yet to be ratified by the network’s users.
The allegations have caused some members of the cryptocurrency community to question EOS’ governance structure more adamantly, for more than one reason--“so many excellent BPs which, by almost all accounts, add tremendous value to the EOS community are currently being squeezed outside of the Top 21,” wrote Medium user Blockchain Kid.
“At the same time, Block Producers that lack basic governance disclosures, have added less in terms of value-add tools for the community, or who have only formally announced their candidacy within the last two weeks, are experiencing incredible voting support and have a place among the Top 21.”
Indeed, while the allegations may be untrue, the very fact that they are plausible seems to point out an inherent flaw in the EOS governance structure. Perhaps it’s time for the developers to address this.
Fears of centralization on the EOS network erupted this week when analyst in the crypto community began to wonder if the concerns that Ethereum Ethereum Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Read this Term creator Vitalik Buterin had laid out in a blog post earlier this year had come true.
A Twitter account operating under the name “Maple Leaf Capital” posted several screenshots of what appeared to be a leaked Excel spreadsheet containing evidence that China-based Huobi, one of the world’s oldest and largest cryptocurrency exchanges and an EOS block producer, was accepting bribes in exchange for supporting certain governance decisions.
— Maple Leaf Capital (@MapleLeafCap) October 1, 2018
The EOS network uses a consensus algorithm known as Delegated Proof of Stake, which means that the network operates with only 21 ‘block producers.’ These block producers are entities who have been elected to maintain the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term and add new blocks; just as in networks with Proof of Work and traditional Proof of Stake algorithms, these block producers are given token rewards in exchange for their work.
Damage Control is Underway, Despite Denial of the Allegations
Of course, Huobi has denied the accusations, and they are essentially unverifiable. However, EOS addressed the allegations nonetheless.
"We are aware of some unverified claims regarding irregular block producer voting, and the subsequent denials of those claims. We believe it is important to ensure a free and democratic election process within EOS and may, as we deem appropriate, vote with other holders to reinforce the integrity of this process,” wrote Block.one in an official statement on Tuesday. Block.one is the company responsible for developing the EOSIO software.
10/1/2018 Statement: EOS Public Blockchain Governancehttps://t.co/E5LTk6aWGz
— Block.one (@EOS_io) October 1, 2018
While the allegations are serious and cast a shadow on the EOS network, the practice of vote-buying hasn’t exactly been banned on the network. While there are statements against vote-buying in the network’s constitution, the constitution has yet to be ratified by the network’s users.
The allegations have caused some members of the cryptocurrency community to question EOS’ governance structure more adamantly, for more than one reason--“so many excellent BPs which, by almost all accounts, add tremendous value to the EOS community are currently being squeezed outside of the Top 21,” wrote Medium user Blockchain Kid.
“At the same time, Block Producers that lack basic governance disclosures, have added less in terms of value-add tools for the community, or who have only formally announced their candidacy within the last two weeks, are experiencing incredible voting support and have a place among the Top 21.”
Indeed, while the allegations may be untrue, the very fact that they are plausible seems to point out an inherent flaw in the EOS governance structure. Perhaps it’s time for the developers to address this.