Despite its status as a top 10 token, the crypto community’s confidence in EOS has been relatively low since the launch of the mainnet back in 2018. A recent report has identified six major technical and governance problems that the network faces.
EOS makes use of a proof-of-stake (PoS) protocol, as opposed to the proof-of-work (PoW) mining systems that are used by most major coins. It is currently the most high-profile crypto network to use PoS, although Ethereum (ETH) may be pivoting towards this sometime in 2019. EOS is also one of Ethereum and Tron (TRX)’s major rivals for dApp development.
These unique features led many to see significant potential in EOS, and the network tops the monthly blockchain rankings released by China’s Center for Information and Industry Development (CCID) almost every time.
However, there have been many security issues and other flaws since the launch of the mainnet, and the EOS team has paid out more to developers in bug bounties than any other network.
This latest report from Chinese media outlet ODaily has broken down the issues that EOS faces into six main points. The first two problems that the network needs to confront are related to the supernode mechanism. The report questions the fairness of the election system for the 21 ‘super-nodes’ that act as block producers, and also suggests that profitability is relatively low for all other nodes.
Other problems are related to the “status quo of rights allocation” between BPs and the ECAF (EOS Core Arbitration Forum), as well as the network’s RAM issues and CPU usage. Furthermore, as with other dApp-focused blockchains, the eco-system is relatively limited, with simplistic gambling-based platforms like EOSBet and EOSDice dominating the network. Finally, the report reiterates how many security vulnerabilities have been identified with EOS.
EOS Adoption Grows as Exchanges Target its Community
While crypto enthusiasts, still in shock over last year’s ecosystem-wide price drops, are looking for signs of the next boom, more pragmatic work has been going on behind the scenes. Rather than trying to build and launch the next Bitcoin, industry developers are focused on functional ecosystems with enterprise implications and practical applications.
EOS, a powerful dApp platform with commercial scalability and the fourth most prominent digital currency by market cap, is one of the major players in this regard. With more than 200 dApps and as many as 21,000 daily users, it’s gaining serious traction.
As dApps and compelling gaming experiences are beginning to dominate the industry, there is a considerable turn toward these functional platforms, leading to EOS’ rapid growth.
Now, some crypto exchanges are helping to support this adoption. Recently, exchanges like CODEX, Bancor, and Huobi are focusing their attention on EOS users.
Startups Take Notice
AtticLab is also a block producer on EOS, and they are a significant player in its ecosystem. Therefore, it’s no surprise to find its exchange providing benefits for EOS community members and users.
Launching in December 2018, CODEX has a growing user base, and their product development, which is especially prescient for EOS users, seeks to further the industry’s bridge between crypto enthusiasts and their favorite platforms.
For EOS users, CODEX offers several infrastructure solutions. For instance, users can generate free EOS wallets. In addition, the exchange has launched the EOS CPU Aid Campaign, which provides support to EOS users who actively use EOS dApps but who also want to trade EOS tokens. The program allows registered CODEX users to request a delegation of 50 EOS tokens worth of CPU, so users don’t have to choose between participating in the dApp economy and trading EOS tokens.
While CODEX seemingly seems an EOS-oriented exchange alone, it has other blockchain projects in mind as well. For example, it is planning to launch an open-source USDT wallet, based on Omni blockchain.
With a rewarding loyalty program for daily users, trade mining features and a multi-stage security audit, EU-regulated CODEX is working hard to prove its worth in the eyes of the crypto community as a whole and EOS users more specifically.
Established Exchanges Shift Their Emphasis
Of course, startups aren’t the only platforms focused on EOS users. In December 2018, Huobi Group announced plans to launch an EOS-dedicated exchange in early 2019. The new exchange will deploy a Distributed Proof of Stake consensus method while allowing EOS users to trade tokens against a variety of altcoins.
The initiative is being undertaken by Huobi Pool, the group’s crypto mining division, and according to the company’s CEO, Cao Fei, “As an EOS supernode, Huobi Pool has placed its ecological development high on its list of priorities…Launching this EOS exchange is simply the next logical step in our support.”
Meanwhile, BancorX, a platform derivative of the popular Bancor exchange, allows users to move seamlessly between Ethereum and EOS-based assets. This cross-blockchain functionality is intended to make blockchain ecosystems more collaborative and practical, something that is defining the next generation of decentralized development.
While many pundits are spending their time looking for the next Bitcoin, crypto enthusiasts know that the decentralized era is about more than just “to the moon” prices. It’s about real-world use and usability, something that dApp platforms are working hard to produce. With CODEX, Huobi, and Bancor, building products to facilitate this ecosystem, the future looks more functional than ever before.
Wanchain to integrate EOS
Wanchain will integrate EOS between April and June 2019.
Oliver Birch, Wanchain’s Vice President of Communications and Growth, said that the reason behind choosing EOS is their recent great performance.
Wanchain is a cross-chain collaboration platform, has recently integrated the EOS platform. The integration will be finalized between April and June 2019. Oliver Birch, Wanchain’s Vice President of Communications and Growth, revealed this in the company’s community conference call for this quarter. Birch also mentioned that the reason behind choosing EOS is their recent great performance.
“We are very proud of our ecosystem made up of some of the most revolutionary projects and blockchains in the industry. This is only the beginning as we are on a mission to CONNECT Open Finance. RT if you’re excited to join us on this journey!”
Wanchain CEO Jack Lu said:
“We are pleased to be integrating EOS into the Wanchain ecosystem, bridging their powerful dApp community to the Ethereum and Bitcoin networks. EOS also has a strong, global developer and block producer network that will be able to leverage Wanchain’s cross-blockchain platform.”
EOS market update: EOS/USD lackluster trading prevails
- EOS is languishing in bear pressure after the weekend session failed to break past the key resistance at $4.00.
- Expect EOS continue with sideways trading in the short-term.
EOS/USD opened this week’s trading at $3.81 and ascended to highs around $3.86. Like most of the assets on the market, EOS is languishing in bear pressure after the weekend session failed to break past the key resistance at $4.00.
The crypto has not been able to recover following the devastating declines on February 24. The waterfall drop saw EOS plunged from the highs close to $4.5 to the lows around $3.25. In fact, since the beginning of March is capped at $4.00. At the same time, formidable support has been established at $3.25.
Currently, EOS/USD is valued at $3.77. While the path towards $5.00 is going to be an uphill task, EOS equally supported by the bullish trendline, 50 SMA and the 100 SMA.
I expect EOS continue with sideways trading in the short-term a trend emphasized by the RSI which is horizontal at 50. Besides, bear pressure is still present with the MACD sliding towards the negative region. Various support levels will come to the rescue of the crypto if declines progress below $3.25 starting with $3.0, $2.75 and $2.25.