In the latest report by Weiss Ratings, one of the few cryptocurrency rating firms, the potential of EOS blockchain project is put under much limelight.
Weiss EOS 101
From a bird’s point of view, the rating agency seems to be optimistic about EOS’ potential to provide what Ethereum had promised – establish the groundwork for the smart economies of the future.
EOS is the first of its kind complete, fully scalable, third-generation, distributed ledger platform released to the public. The idea behind EOS is to converge together the best features and promises of the numerous smart contract technologies in the world today, into one common easy to use platform for the everyday user to empower the impending blockchain technology.
However, Weiss views the centralization problem in EOS as its most significant hurdle in its path to become a reality. The project is not alien to controversy and been criticized in the past due to the “involvement of [larger token holders] people in the project,” and for raising a $4 billion funding without even releasing the actual product.
Now that EOS has moved under the control of its development community, Block.one, it remains to be seen what the future holds for EOS.
Community Consensus a Major Factor
This community includes the teams all around the world which now run as potential candidates to become miners on the central EOS chain. The miners decide how the network works and how it shapes up its governance model, keeping in mind the dynamic environment which has been brought upon by the cryptocurrency industry.
According to Weiss Ratings, the future of EOS hangs on one crucial factor, which is up to its community to decide, i.e., whether to opt for centralization or decentralization. A centralized project vests the power in the hands of the few elite members, while a decentralized project does precisely the opposite – spread power to take decisions and control over a broad group of participants.
Corrective Measures Suggested
Even though block.one’s motto has always been “Decentralize everything,” the actual state of EOS today is in sharp contrast to the mission statement of the company. In a recently released report by Weiss, the rating agency found out that EOS is in fact, one of the most centralized blockchains in the world today.
As reported by BTCManager, it is estimated that the top 10 EOS token holders virtually run the network in its entirety. That is a lot of power to be concentrated at the top of the network.
Weiss has also suggested a few measures through which EOS can tackle the centralization problem efficiently. These measures include increasing the total number of miners to more than 21, capping the voting power of the biggest token holders to no more than 2.5% of the entire token supply and also that the large token holders must identify themselves in public.