A research commissioned by ConsenSys and conducted by the blockblock test company based in Los Angeles, Whiteblock, said that the world's fifth largest cryptocurrency, EOS, is not a blockchain, but a "cloud service". The company said:
"EOS is basically the same as a centralized cloud computing architecture [client/server] without the basic components of a blockchain or peer-to-peer network. "
Laboratory tests performed a replication of EOS and the company concluded that EOS is essentially a cloud computing service. They have come to the conclusion because it is built entirely on a centralized premise and lacks the most fundamental aspect of the blockchain, the immutability.
The tests conducted by Whiteblock began in September and lasted for a period of two months.
According to a post by The NextWeb, the newspaper stated:
"Through practical tests and experiments in a controlled laboratory, this research provides a complete and objective model of [EOS’] design, performance and economy to present a reference for the blockchain community ".
The document also highlighted that EOS transactions "are not cryptographically validated" and that there is nothing to prevent producers of collusion blocks, which would allow them to maintain their position. EOS differs from Bitcoin [BTC] and Ethereum [ETH] in many ways, especially in deciding who validates the blocks and collects their fruits.
The delegated Proof-of-Stake is a complicated voting process that is used by EOS to decide who has to process the transaction blocks, unlike the Proof of Work that many blockchains use to contribute to the network. During the voting process, each EOS was equated with one vote, which essentially means that the person who has the most EOS has more say in the process.
The document reports that EOS fails in consent without tolerance to Byzantine failures [BFT], which would allow control of the network by people who are in collusion. He also confirmed that for a network that implements BFT, the system should not allow collusion.
The research also revealed that EOS processes fewer transactions than was claimed during marketing. He added that with optimal settings, transactions never exceeded 250 per second and that "the current maximum EOS transmission rate is around 4,000 TPS".
Subscribe to the AMBCrypto newsletter