Connect with us

Bitcoin

EOS Block Producer ‘Starteos’ Controversially Offers Rewards For Token Holders’ Votes

Published

on

EOS Block Producer Offers Rewards For Token Holders’ Votes
Decentralization supporters within the EOS community were quite angered once more this week after one of EOS’ official Block Producers — Starteos — offered token holders financial rewards in exchange for votes.

What Is EOS?
As many already know, EOS is a blockchain-based project with a strong focus on smart contract and dApp creation. It is a relatively young coin, which was launch in 2017, although it only got its own MainNet working in June 2018. It was created by block.one, which is a startup led by Brendan Blumer and Dan Larimer.

EOS is also known for having the most successful ICO in the history of cryptocurrencies, which lasted for almost an entire year, and it raised around $4.1 billion. Its native coin is also called EOS, and it is currently the 6th largest coin by market cap.

The project uses a consensus model named DPoS, meaning that its investors get voting power, and can decide who can mine EOS blocks. In other words, the ecosystem consists of two entities — the ECAF (EOS Core Arbitration Forum), and Block Producers, who are creating blocks, just like Bitcoin miners.

EOS BPs earn different amounts of tokens, with some estimates saying that the biggest ones get around 1,000 coins per day. There are always 21 of them, and they are elected via the constant voting process. Now that we understand how the process works, let’s see what the problem is.

EOS Block Producer Tries To Buy Votes
The source of the issue is Starteos, a China-based startup that claims to have entered the blockchain industry as far back as in 2013. The company issued several large products since then, two of which — a digital wallet and a cold storage wallet — came out this year.

The company is currently EOS’ fourth-largest Block Producer, which means that it gets a big portion of the revenue. However, a little over a week ago, on November 27, they published a post on their Medium page that started the new wave of controversy. The post was titled “We Gonna Share BP Proceeds With You — This Is the Way We Warm You Up in This ‘Winter’!”, and in it, the company offered a stable and continuous EOS revenue in return for voting for the company.

All that the voters need to do is select Starteos as a proxy and pick a revenue model, which can be either stable income or random revenue. The community quickly stood against this offer, as it goes against democratic blockchain policies and decentralization itself.

The Community Reaction
As mentioned, the community was not happy with this development. Not only does it openly defy decentralization, but the BP did it without even trying to hide their intent. About a month ago, on November 8th, Starteos announced the launch of a dApp that would act like a slot machine. They stated that users can earn tokens by using this dApp and that the tokens will be coming from their EOS BP rewards. At the time, it was believed that there is no bad intention behind the project, although it came really close to offering block rewards for votes.

Soon enough, these suspicions were confirmed, as the company tried to make the same offer via Medium, this time more directly. The move quickly spread through different social networks such as Twitter, Reddit, and even YouTube. Before long, the community demanded Starteos to be removed from the ranks of BPs.

Some of the other BPs also left statements against vote buying, although they never openly mentioned Starteos. EOS New York, the eight largest EOS BP, stated that EOS lacks a document that will outline some basic system of governance. Despite the community, and at least one other BP turning against it, however — Starteos still holds a high position among the BPs.

Previous EOS Centralization Incidents
Unfortunately, this is not the first time that there were signs of centralization within EOS. Another example came only a few weeks before the latest ones, and it includes ECAF moderator reversing already confirmed transactions. The community was outraged on this occasion as well, and many started claiming that EOS is failing in its mission to remain decentralized.

Some comments on Reddit even accused EOS of raising $4 billion just to recreate the legal system that uses tokens, while it is neither immutable nor resistant to censorship.

Before that, in October 2018, Huobi and a few other major BPs were accused of mutual voting. The claims were that a Huobi spreadsheet leaked information that indicates that several nodes are intentionally voting together in order to remain in power. Interestingly enough, Starteos was mentioned as well.

Even before that, in June, another BP scandal occurred, when BPs went against ECAF decision and have frozen seven accounts believed to be connected to a phishing scam. While this was later considered to be the right call, the BPs taking matters into their own hands was still heavily criticized.

There was also an incident where suspicious ECAF orders were received, and BPs decided not to obey them as they were unsure if the orders truly came from the ECAF.

On November 1st, a blockchain testing firm called Whiteblock released results of testing EOS software. The report surprised everyone with claims that EOS is not a blockchain, but a distributed, homogeneous database management system. This was due to the fact that its transactions were supposedly not cryptographically validated.

The list goes on, and EOS has been going from one controversy to another, with more suspicion regarding the quality of the project and its decentralization rising each time when a new issue hits. While EOS is doing its best to go through this rough period and save whatever it can, many believe that a few more incidents such as these might damage project’s reputation beyond repair.

Bitcoin

Bitcoin (BTC) Loses 1.13% Overnight; Value Falls Below $7300

Published

on

Bitcoin has been down by 1.13% over the last 24 hours, and it has shown three major price swings in the range of 7382 USD and 7175 USD. It is expected that Bitcoin may take things slower from now on.

Bitcoin Price Prediction

Bitcoin opened the day near 7315 USD, and over the next 4 hours and 37 minutes, it gained 0.91% and got placed at 7382.33 USD. It was followed by a huge decline in the value. Between 04:44 UTC and 17:59 UTC, Bitcoin fell by 2.80% and touched the lowest point of the day at 7175.77 USD. The last swing of Bitcoin happened between 17:59 UTC and 01:22 UTC today and in these 7 hours and 22 minutes, Bitcoin managed a hike of 0.83% that added 59.65 USD and pushed the value to 7235.42 USD.

BTC Price Prediction

There has been a marginal increment in the market cap of Bitcoin. Yesterday, the market cap was at 131.696 billion USD, and today, it has been increased to 131.829 billion USD.

Bitcoin’s 20 days MA stands at 7351.55 USD, and it’s 50 days MA is now at 8207.4 USD. The current price at 7232.98 USD is 11.87% and 1.61% less than the 50 days and 20 days moving averages, respectively. BTC’s next halt may come at 7386.08 USD in the coming few days as its next resistance.

News Source

Continue Reading

Bitcoin

China Continues to Dominate Global Bitcoin Mining, But for How Long?

Published

on

New research shows that China’s dominance of the total Bitcoin hash rate continues to grow. The nation reportedly now accounts for around 66 percent of all the computing power supporting the Bitcoin network at present.

China has historically been the leader in global Bitcoin mining. However, with large mining operations coming online in the US and Russia in 2020, the industry this time next year might look quite different.

Two Thirds of Bitcoin Mining Happens in China, Says Report

A report by CoinShares, cited by Reuters, claims that Bitcoin miners located in China now control around 66 percent of the total network hash rate. Hash rate is a way of describing the amount of computing power supporting the network.

Total network hash rate has been rising rapidly during 2019. NewsBTC has reported several times about new all-time highs in terms of the amount of computing power supporting the Bitcoin network. With mining interests investing heavily in hardware, it’s clear that Bitcoin miners are confident in the future of the digital currency.

Chris Bendiksen, the head of research at CoinShares, attributes the rising hash rate to Chinese miners deploying higher powered hardware sooner that those located in other countries. Three of the largest manufacturers of mining hardware are from China: Bitmain, MicroBT, and Canaan. Despite how opaque the industry is it seems fair to conclude that a large proportion of the most cutting-edge mining hardware will be deployed in China first.

Although the mining industry in China is growing faster than in other nations, there are large operations in the works that allow other nations to catch up by this time next year. New mega mining farms are being planned in both the US and Russia at the moment.

Bitmain itself has just opened a huge mining operation in the state of Texas. The facility currently has a total capacity of 50MW. However, the Chinese mining giant says it has plans to increase this to 300MW at a later date.

Similarly, Layer 1, a San Francisco-based startup, also plans to launch a mining operation in Texas. This effort seeks to lower the mining industry’s dependence on firms like Bitmain by developing its own cutting-edge hardware and cooling systems.

Meanwhile, the Russian Mining Company (RMC), owned by the nation’s internet ombudsman also has plans to create a vast new operation in the province of Karelia. CEO of RMC, Dmitry Marinichev, claims that the new facility will command around a fifth of Bitcoin’s total hash rate when it is completed.

Meanwhile, the Russian Mining Company (RMC), owned by the nation’s internet ombudsman also has plans to create a vast new operation in the province of Karelia. CEO of RMC, Dmitry Marinichev, claims that the new facility will command around a fifth of Bitcoin’s total hash rate when it is completed.

News Source

Continue Reading

Bitcoin

Bitcoin technical analysis: BTC/USD bears have forced a devastating daily closure below flag pattern

Published

on

  • Bitcoin price is trading in minor positive territory, up some 0.35% in the second half of the session. 
  • BTC/USD price action broke out and closed below a bearish flag via the daily chart view.
  • The next major daily support is eyed at psychological $7000 down to $6800 range. 

BTC/USD 60-minute chart

Price action is moving within a near-term bearish flag structure, to suggest another break south may be around the corner. 

BTC/USD daily chart

The price is trading just below a bearish flag structure, which leaves it vulnerable to further potential downside for now. 

Spot rate:                  7,387.68

Relative change:      +0.35%

High:                          7266.01

Low:                           7177.92

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Source: fxstreet

Continue Reading
Open

Close