- Analysis by Binance Research, the governance of EOS fades with the benefits of decentralization.
- Raised from the global leader in high-performance software, the company Block.one developed a protocol which is termed as EOS.
Per the intense market research and analysis by Binance Research, the governance of EOS fades with the benefits of decentralization. The reason behind the lack of governance of this third-generation blockchain protocol sums up with many reasons out of which Binance Research comes up with some of the major intentions.
Its latest report, the governance of EOS could miss out on the benefits of decentralization due to some of the acute reasons.
EOS a delegated Proof of Stake consensus network, frequently spotted as a victim of its governance; however, the largest EOS holders combine their positions and hold all the powers.
What is EOS?
Raised from the global leader in high-performance software, the company Block.One developed a protocol which is termed as EOS. This product was officially launched in June 2018 and proved to be the next-generation open-source blockchain protocol with industry-based transaction speed build for both public and private usage.
With the traction of growth in the price and ecosystem, EOS proves to be one of the most popular blockchains for dApp development.
What are the key reasons behind this issue?
Owning to the most powerful framework of decentralized application, EOS has been labeled as a culprit for its governance. Binance Research, one of the leading professionals in the crypto investment analysis industry, conducted the assessment in a three-fold manner and suspected in its latest report the performance of EOS concerning Collusion Resistance, Fault Tolerance and Attack Resistance.
Concerning Collision Resistance, EOS strengthens consolidation by vote trading and selfish act, whereas some of the individual companies like block.one or proxies have the leverage to change the votes radically.
The governance of EOS lacks in the method of vote trading. The impulsive structure of EOS strengthens by promoting vote trading and selfish acts.
Moving towards fault tolerance, these operational metrics proved that 2 out of 3 exchanges operating as block producers had poor performance amongst the 21 block producers. This could be one of the reasons where failures occurred.
Lastly, in regards to Attack Resistance, two clusters of block producers came out, which revealed a correlation between a regional distribution and voting patterns.
As a whole EOS, the third-generation blockchain is experiencing many issues about its governance such as low votes, insignificant transparency, poor resistance to Sybil attacks and also, changed block rewards.