Largest ICO, EOS not cryptographically secure, says competitor

Consensys-sponsored research suggests that EOS is not secured by cryptography.

2 Nov 2018 1 min read

Whiteblock, a blockchain testing company suggests that 2 billion funded smart contract development platform is not a blockchain but "a glorified cloud service" on a provocative study.

The tests was conducted in Whiteblock's laboratory and consisted in building and operating a replica of EOS. The experiment held for a couple of months in an isolated environment.

"It runs the exact same software." told Whiteblock CTO Zak Field to The Next Web.

Not a blockchain.

EOS is not a blockchain, rather a distributed homogeneous database management system, a clear distinction in that their transactions are not cryptographically validated

The report explains that the network is heavily centralised and could be controlled by a handful of grouped agents. The paper later proved that these "cartels" could easily collude to maintain control over the production of new blocks.

Whiteblock benchmark's reveal an alarming "mechanical" block confirmation process, revealing a large "vulnerability in the system" in its consensus mechanism.

Cryptographic controversy

The EOS stores its transaction on a "Chainbase", which, according to Whiteblock, is not confirmed by cryptography. It compares it with a "centralised cloud computing architecture without the fundamental component of [...] peer-to-peer network."

The Whiteblock is organising a livestream of EOS' benchmark testing in November.

Sponsored by a competitor

The tests were ordered by ConsenSys, a blockchain research company known for its extensive involvement with the development of Ethereum, a competitor of EOS. The "venture production studio" has huge stakes in Ethereum and counts some of its founders as board members.

It is therefore natural to expect a negative outlook from Consensys on the EOS platform. However, they have not been any flagrant evidence that suggests a sense of harsh rivalry between Consensys and EOS. That being said, the former issued last week a call for transparency on the EOS' sale.

EOS conducted the largest tokenised sale till date. It raised over $4 billion between June 2017 and May 2018, as an Ethereum-based ERC-20.

On June 2, token holders could swap those ERC-20 tokens for EOS assets on its own "blockchain".

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