EOS, since its debut in 2017 has been one of the coins hinted at as a possible challenger of one of the market’s top player, Ethereum (ETH).
It is noteworthy that the coin has in line earned a place in the heart of crypto enthusiasts albeit gaining its share of critics along the way. Its reference to being a viable challenger to Ethereum’s top position in the dApp world has, on numerous accounts, put it in the spotlight.
BTC/USD derivatives trading platform, BitMEX recently released a thoroughly vetted report on the nature EOS Blockchain and its state as a competitor for Ethereum’s crown. However, the feedbacks detailed in the report do not show EOS in a good light.
The report conclusively showed that the digital asset and its blockchain needed thorough reassessment and redesigning to stay ahead of the game and be a worthy competitor.
The $4 Billion Tag
One of the most damning points picked out by the derivatives trading platform is the EOS network’s claims of being a blockchain network.
BitMEX pointed out that for a network that had raised about $4 billion in its Initial Coin Offering (ICO) presale, its blockchain is not exactly equipped to handle a higher level of transactions upon expansion.
According to the report, transactions on the network are verified by just 21 nodes which is certainly not a lucky number for higher processing rates. This does mean that the EOS blockchain is not exactly equipped to handle the level of users the ETH network handles.
Not a Blockchain-base Network
As established in the crypto space, there is a wide-spread need for alternatives equipped to carry out faster and transparent transactions thereby eliminating congestion. BitMEX however pointed out that the EOS “does not alleviate congestion, though rather circumvents it.”
This meant that in close proximity with Ethereum’s Transaction per second rate, there was no guarantee of being the better party.
“[…] the transaction throughput in the system does not exceed 250 TPS even in optimal settings […] during tests with real world conditions, performance dropped below 50 TPS putting the system in close proximity to the performance that exists in Ethereum.”
Power Concentration
With transparency the goal of blockchain-related transactions, BitMEX pointed out another fact that remotely puts the network in bad light. The network uses 21 block producers (i.e. the nodes) for the validation of transactions.
These nodes however work only on the principle being voted in by the users. Hence, for a classical case of these block producers losing out on votes, users can get blacklisted out of the network.
This is because these producers are empowered to blacklist users and manage resources on the network provided there is a consensus. This certainly makes the EOS more vulnerable to malicious attacks if there is no consensus between the producers.
