A number of ratings platforms have popped up over the past

year or two in the ever increasingly competitive world of crypto. Their

apparent aim is an attempt to compare tokens on various merits such as

adoption, technology and investment risk. Weiss is one of the more respected

ratings outlets and they have just dropped a bombshell on EOS.

EOS has had a bit of a rough ride recently. The Ethereum rivaling

token was pumped leading up to the highly

anticipated B1 event last weekend. There was a lot of fomo in anticipation of

some big announcements when never really materialized. Since then EOS has

dumped over 20 percent to its current level.

Weiss Ratings has just added fuel to the fire with a recent

announcement stating that they were downgrading EOS due to

centralization issues;

“EOS DOWNGRADE: #EOS has serious problems with centralization, and their event last week did anything to alleviate that, so we’ve severely downgraded its technology score. It’s now up to #ADA to launch a truly decentralized #PoS #blockchain. No pressure.”







EOS DOWNGRADE: #EOS has serious problems with centralization, and their event last week did anything to alleviate that, so we’ve severely downgraded its technology score. It’s now up to #ADA to launch a truly decentralized #PoS #blockchain. No pressure.#crypto #Cardano #BTC — Weiss Ratings (@WeissRatings) June 7, 2019









The tweet included a blatant pump for Cardano which has been

very slow getting off the ground in terms of development.

EOS Centralization Woes

The EOS centralization problem has been widely publicized. The system only has 21 nodes which check and validate transactions. Every 126 blocks 21 new nodes get elected by the stakeholders, this means that every round an elected node ‘mines’ 6 new blocks. It employs a Delegated Proof-of-Stake (DPOS) consensus model which means investors are rewarded with voting power and can decide who gets to mine the EOS blockchain.

The entire ecosystem is essentially built upon the EOS Core

Arbitration Forum (ECAF), which is effectively its ‘judicial branch,’ and the Block

Producers. The 21 elected block producers are rewarded with EOS tokens produced

by inflation, the constant voting process means that those BP candidates with

enough votes can replace current block producers.

It doesn’t end there. A recent report by blockchain

analytics firm AnChain suggests that most users associated with dApps are

actually bots. AnChain studied the top ten gambling apps on EOS and concluded

that they accounted for 65% of all transactions on the EOS blockchain.

According to Coingeek the results of the analysis show that

in the first quarter of this year bots comprised 51% of all unique accounts and

over 75% of all transactions. The firm added; “In other words, every day the

equivalence of $6 million USD in transaction volume is driven by bad bots.”

Since its 2019 high of $8.45 EOS has dumped 22% to its

current price of $6.57 despite a Coinbase listing. It has dropped down to sixth

spot being eclipsed by Litecoin which has surged

into fourth as halving fomo heats up.

The post Weiss Ratings: EOS Downgraded Due to Centralization Issues appeared first on Ethereum World News.