Bit Of Background
It has certainly been a rocky path for EOS over the last few weeks.
After a year long ICO, the open source code was released at the beginning of June by developer Block.One. This controversial move then saw the EOS community take over, develop and test the platform so it was market ready. This took longer than expected because there were several parties interested in taking the lead on this element, two in particular. Arguments were finally resolved. The next stage saw the 21 blockchain producers elected through a voting process which also took longer than expected. And then finally once the 15% threshold of voting was reached, the product was finally live.
The Latest News
Since then, it was hoped that things would settle down for this Cryptocurrency – the 5th largest in the world. However, further scandal has been reported and although the initial intentions were brilliant, the repercussions have not been great. This issue started when seven accounts were locked during the transfer of the tokens from their temporary Ethereum home to their new EOS wallets. This was simply down to the fact that the blockchain producers were not comfortable that these particular accounts were legitimate or had not been tampered with. The big problems however occurred after this with the arbitration element of the Cryptocurrency. The EOS Core Arbitration Forum (ECAF) is responsible for resolving such issues but it remains unclear as to whether this is the role that it is delegated to do and exactly how much it can control transactions. The void in clarification has derived from the fact that although several discussions have taken place around the ECAF remit, there has never been anything formalized. Herein lies the problem.
Although in this particular case – with the seven accounts – ECAF has ratified the decision, there were a further 27 accounts found to be in question by ECAF. However, this latter decision turned out to be inaccurate. Since this, the New York EOS team has announced that any decisions made by ECAF will be ignored until the forum can sort itself out and act responsibly. Sadly, this thought process is mirrored by many in the EOS community including the block producers. Block producers should be able to ultimately trust their arbitration arm and at the moment, in the case of EOS, this simply is not the case. The ECAF team are not helping themselves either by making their announcements on decisions over social media in the form of PDFs. This is not an acceptable behaviour for such an authority to operate in and does question the authenticity of decisions and statements.
The Way Forward
EOS is a significant player in the Cryptocurrency industry and has so much to offer, so it remains fundamental that everything is resolved as soon as possible. The huge benefits of this product means that clients can store their information easily and safely on blockchain in a distributed environment. It’s reputation is not only on the line with its customers but also with the industry as a whole so the sooner these matters can be put to bed, the better for all concerned. This is the last thing that the block producers needed after all of the previous controversy, but very positively the whole EOS community is working hard to finalise these issues and develop a trusted source for ECAF announcements to be made. So there is light at the end of the tunnel.