Recent turmoil in EOSIO community, predominantly caused by the serious flaws in the organizational structure, fueled a raging EOS block producers panel discussion that quickly spread across the blockchain society.
EOS is a blockchain platform for the development of decentralized applications (dApps). It is similar to Ethereum in a function that makes dApp development easy by providing an operating-system-like set of services and functions.
Given the latest development in EOS ecosystem, EOS is now a hot crypto on exchanges, especially at the world’s largest one, Huobi Pro, that enables EOS pairing with USDT, BTC, ETH, and HTi, with a 24-hour trading volume of 6,602,675 EOS at the time of the writing. By many analysts, it’s a good time to trade EOS.
What made markets and communities to focus on EOS?
Other than the launching of the EOS MainNet, we can thank the most recent firing debate that spread across the blockchain community after ECAF (EOS Core Arbitration Forum) decided to freeze several accounts suspected of phishing propaganda or hacking.
In reality, block producers froze the accounts after the real owners requested the action because they suspected their accounts were being compromised.
Another thing that added fuel to the fire was the fraudulent attempt to impersonate ECAF and request bans for several accounts. Luckily, block producers invested some time to realize how the request was illegitimate.
You can see the core discussion about the issue that involves some well-known industry names at Houbi Talk:
What is at the core of the EOS problem?
Two things. One, fundamental institutional flaws. Two, naïve believing in code’s perfection. Although, that should read, stubborn, one-sided view completely based on the wrongly assumed perfection of the code where that same code is considered as the one true solution to all potential problems.
In reality, nothing is perfect nor the code itself, no matter how perfect it is, can solve every potential problem along the way, and that’s Larimer’s biggest mistake.
HOW CAN A BLOCKCHAIN SUFFER FROM “FUNDAMENTAL INSTITUTIONAL FLAWS”?
EOS is envisioned as a self-governed community that relies on democratic principles based on the constitution.
However, what Dan is proposing to tackle the issue won’t make much difference.
These recent disputes arbitration issues are simply caused by poor definition and structure of ECAF that supposed to be a central authority in these matters.
Because, as a developer, Larimer is observing things black and white, naively proposing the solution that is, once more, based on the perfection of the code or, to use his term, Intent-of-Code-is-Law.
In other words, he wrongly assumes that every dispute can be solved with a “perfect” code.
It can’t. Because a code is written by humans and as such, it is inevitably influenced by the core human flaws which make it fully exposed to direct and/or indirect (un)intentional future exploits.
Although, there is one thing Dan said in a response to a comment that we could all agree with. If you are intentionally and in healthy mind using the unofficial, third party’s service instead of the suggested official one to handle your assets in any way, don’t go crying around when someone snatches those assets.
What’s the optimal solution for the EOS disputes governance?
In every democratic system, there are 3 main bodies that govern things:
In the current EOS governing system, the three parties are:
• Token holders
• 21 block producers
• ECAF arbitrators
If we observe token holders as the legislative body (the body that creates the rules in the traditional democratic system), 21 block producers as the executive body (the government), and finally, ECAF arbitrators as the judicial body (supreme court, for instance), then the solution is obvious.
After, of course, ECAF is established as the authority and not some shady group of people nobody really knows with no clear backgrounds in legal matters. And, after Larimer accepts the fact that human behavior plays a significant role in any system.
WILL IT HAPPEN?
Yes. It takes time for the system to evolve. EOS is not an exception.
HOW LONG WILL IT TAKE?
There’s no way to tell. European Union was born in 1992 and it’s still not a cohesive, unified state with the central authority and constitution. Believing that EOS can establish fully functional democracy in a matter of one year is just naïve.
On the bright side, the confusion and turmoil are creating a perfect playground for some serious margin trading. If you want to benefit from EOS’ amazing volatility, you should read through this article. There the author is exemplifying a well-grounded trading strategy.
(Disclaimer: The author doesn't own EOS. Please do your own research before investing in cryptocurrencies.