EOS! So Many Issues... What Will Happen!steemCreated with Sketch.

in #crypto5 years ago

Ohh how the mighty are failing...

I was there when it launched, I was there...watching the Livestream very attentively, I was excited for the possible future that it would bring, a faster future, a feeless future, a future with honesty and transparency, a future where I could be part of the governance. I was excited, but I'm not anymore! EOS has way too many issues...

EOS launched May 2018 with great promises! People were saying that EOS would be the Ethereum Killer, and after doing some research I really believed in it, with DPoS and few block producers the number of transactions that the network could handle was going to be enormous! The community seemed very knowledgable about how it worked and there were many people that reported on the status of development.

Not only this but the horizontal scaling of EOS would allow multiple EOS sidechains with millions of transaction, each sidechain would use EOS but also have their own token! There wouldn't be any chain forks because updates could be done on-chain, just freeze it and update it. Any stolen funds would also be retrieved by a selection of BP that would be voted in by the community. It looked like the perfect unison between code and humans...

It all sounded amazing, but the mighty have fallen really low... Let's look at some of the problems EOS has at the moment:

Governance

Governance is working as intended, but working as intended also leaves room for exploits. The top 21 block producers are now full of block producers that no one knows, some are only there because they pay voters for that position... and guess what, most of that money is coming out of paid position puppet accounts, puppet accounts are non top 21 Block producers but still with enough votes to get paid EOS, these puppets probably don't have any hardware..

With governance like this, there is lots of room for bad actors to attack the chain. There are only 21 block producers. If most of these 21 block producers are actors and producers that I don't know, how can I feel safe in buying EOS knowing that at any moment these producers that no one knows anything about can steal my EOS and dump it on the market without any questions asked? Achieving a 51% attack on EOS with governance ruined is way too easy... And with governance like it is now the chain doesn't feel secure, especially to build on top off...

And this is showing!

Dapps

EOS has some dapps, good dapps, like EOSKnights, and it's growing, but... with governance issues, dapps are moving away!

Whenever a developer is building a dapp, one of the most important aspects of building that dapp is which chain to build on top off. Choosing a chain is important, we are talking about a decentralized application that will be stored and run on a blockchain, the structure, the longevity and resilience of the blockchain is important. With governance issues how can a dapp feel safe in building on top off it? It can't... and it's showing!

Just a few days ago, Karma, one of the most well-known dapps on top of EOS, decided to move to WAX, and there are more dapps that have decided to move... either to WAX, or Worbli, or Telos, or LynxChain, or Meet.one,etc...etc... to one of the many MANY sister chains of EOS.

Without dapps on EOS, where will the demand for EOS come from? It won't... the demand will go down little by little and the price will go down little by little with it.

SisterChains

Sister Chains are basically separate chains that run the same software(eosio) that EOS runs on but with minor differences, everyone can launch a sister chain... but this is really bad, and the community doesn't get it!

Imagine if 10 new investors want to invest in the eosio ecosystem, but they don't know anything about the ecosystem, they will have to decide where to invest in, some will choose Worbli, some will choose EOS, some will choose Lynx, and some will choose Telos... Guess what? The money will be spread and the demand will never grow enough for the price to go up... and since these are inflationary chains the supply will keep increasing and increasing exponentially and the price will keep dropping and dropping, with a lower price per token also comes less hype and fewer enthusiasts. If this continues sooner or later the BPs won't have any money to pay for the hardware and the chains will have to be shut down (hopefully it won't come down to this).

The solution to this would be to unite under one mainnet with many sidechains(not sisterchains), so new investors knew where to invest in, the mainnet token, only after could they start investing in the sidechain tokens... but it seems people don't want to do this!

Last time I even tried to bring this up some guy attacked me saying that "I didn't get it" and that "I only wanted to pump my own bag"... I almost don't even have EOS anymore, not sure what I need pumping, actually, I'm unstaking my last $8 of EOS and selling them after publishing this post...

As long as the community keeps this mindset of having many sisterchains and letting the governance issues spread, investing in any eosio chain is a no no for me as an investor.

Spamming, EIDOS, and REX...

Since some weeks ago the mainnet has been clogged up because of EIDOS, people rented all the resources available from REX, which shouldn't even be possible, the price should have increased to infinite as the supply started to run out... and all these resources are going straight to mining EIDOS on the mainnet, a token that the community knows nothing about, not even the founders are that well known, the mainnet is clogged up and dapps, like Karma, don't have any resources to make transactions...

And guess what is worse, Karma actually bought and rented some EOS to make transactions for their users! Which is what dapps should do on EOS but aren't doing. If even dapps that bought and or rented EOS to make transactions aren't able to make transactions, the dapps that didn't get any EOS for their users before REX "closed" must be really screwed...

So, the mighty are falling, not sure if they will be able to bounce back or not, I would rather not be hodling any EOS with the amount of smoke that EOS currently has... if they are able to solve these issues I might rethink my position.

Technical Analysis:

If even with all of these Fundamental Analysis issues you still want to invest, I would wait for a weekly MACD crossover and then go in, the price is at the moment on a good buy zone in my honest opinion, but with the FA as risky as it is I would be extremely careful and wait for the weekly MACD crossover to be 99% sure that the most likely scenario would be for the price to go up.


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Question of the day: Are you an EOS investor? What is your opinion about the current issues with it? Do you see the community overcoming these issues?

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The issues havent hurt the price of EOS so it might not. People will remain through the rough times. Look at steem, still holding the bag at .12.

It's different, STEEM never had issues with governance, witnesses always wanted what is best for STEEM, but on EOS there are even BP missing blocks left and right.

Oh well, let's wait and see what is going to happen, worst-case scenario we get some good data out of this whole situation.

From the moment I saw how complex Eos actually was to the average user, I knew it was doomed

Well, if people actually used it like it's meant to be used it wouldn't be that hard. Dapps were supposed to pay for resources and users wouldn't have to touch the blockchain or buy and hodl any EOS... but dapps don't want to do this at all and it's only getting worse and worse.

It is a nice experiment though, which might actually provide good data for future governance solutions.

Let's see how it goes, atm I'm not 100% sure it's doomed, but I do think that most sisterchains if not even the mainnet will die and the ecosystem will unify under one single chain.

Thanks for reading!

Lol. Perhaps I was behind over dramatic. When I say doomed I mean in the context of which it was touted as a world killer to rule them all. It will still survive :0)

And when we saw who bought in.
But dan is laughing all the way to the bank. Again.

That's very true too!

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I have not been able to make a single transaction on EOS for about a month.. My CPU for some unknown reason is at like 5000% usage (what did I do?) and when I try to buy more CPU, it just I don't have enough CPU to stake more CPU. WTF?

I don't fully understand the inner workings, but this seems like a major flaw to me.

You need more EOS staked to make transactions, try asking someone for a delegation to be able to get enough resources to stake more CPU, the network is fully clogged because of EIDOS... and whenever I bring this issues up people either call me a FUDster or tell me "not to stress"...

hehe.. That's always the story. It seems that it's like that in all crypto circles. People have a meltdown if you say anything negative at all.

yup EOS has had CPU/RAM issues since the beginning. Hope they can straighten it out.

A few questions and remarks...

  1. What do you mean with a "51% attack" on EOS? As there isn't really such a thing...
  2. Sisterchains are still built on EOS.io, but then often more centralized implementations of the software. That's a feature, not a bug.
  3. Concerning governance... What about the @freedom account on Steem? Not even B1 has that amount of power on EOS

Interesting times ahead, certainly!

What do you mean with a "51% attack"

Don't know who told you that, but there is such a thing as a 51% attack on EOS, either through controlling 15/21 block producers or controlling 51% of the stake, either of these methods allows one to choose the block producers and reorganize the blockchain.

Sisterchains are still built on EOS.io, but then often more centralized implementations of the software. That's a feature, not a bug.

They are built on eosio but they don't provide anything at all to EOS the token, people say that sisterchains are good for the ecosystem but that's like saying BSV and BCH are good for BTC, or ETC is good for ETH, they aren't! They just steal possible use-cases and dilute all the new money between many chains, a divided ecosystem is a weak ecosystem. The Euro zone exists because European countries joined each other so they could go against bigger economies like the dollar... and IBC won't unite everything, just beause ETH can be united with ETC it won't make ETH and ETC the same coin or the same ecosystem at all...

Concerning governance... What about the @freedom account on Steem? Not even B1 has that amount of power on EOS

I wasn't comparing EOS and Steem since I do know Steem also has it's issues, still, freedom votes for block producers that are part of the community, that people know, the guy doesn't upvote witnesses that no one knows so they can steal away block production and sell it on the market, or even worse, he doesn't collude with witnesses to give him revenue for upvoting them.

I've been telling people for months that these issues would sooner or later be exploited and there should be fixes ASAP for them, everyone told me I was a FUDster and that "I didn't get it"... now the issues are obvious and a large portion of dapps are moving away from EOS. Lol

Thanks for reading!! Always glad to answer some of these questions, there seems to be too much shilling inside the EOS community and not enough actual information or economic knowledge.

Thanks for the answer(s). I agree with most of what you're saying.

  1. That's what I meant, 15/21 block producers. Though, I guess you don't even need 51% of all the EOS out there to vote in 15 puppet accounts to vote everything in your favor. You probably need significantly less depending on who you'd be "competing" with.

  2. You're right, but I don't think the comparison between EOS.io and Bitcoin forks make sense. EOS.io is enterprise software and should rather be seen as a type of share in a company than a type of digital gold or currency.

  3. Luckily @freedom is doing the right thing but it is a problem if one account has so much power.

I see you're located in Portugal... Lisbon by any chance? Ever hang out at Block Cafe?

I live near Lisbon, 1hour away, but never had the chance to go to the Block Cafe, I don't like big cities that much, my city is small, quiet and with lots of fresh air!

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Trouble in EOSland. If one token can make a mess to the whole chain things are not looking good. EOS Knights is unplayable, I have 40EOS staked to be able to play this smoothly. Before I could do hundreds of transactions, these days I can do maybe 5 in one session. And this lasts for how many weeks now, 3 I think. With time these things will be resolved, but right now it is a disaster.

The EIDOS mining is going to last a while, but I think that now that the hype as died down the price of getting CPU on REX vs the price of EIDOS will probably stop the clogging.

I played EOSknights a while back but I was never able to get any profit out of it, the market was already full of materials and no one was buying them. What has been your experience with EOSknights?

I started playing exactly one year ago, those 40 EOS staked came from that game market. So it's not bad but its not something you can write a book about. As more and more people joined the game more high end materials started dropping once they upgraded their characters, pure economy microcosm, more mats less expensive, less mats more expensive. Everyone wants to sell but there are not enough buyers because most of the players can reach floors above 6k. There is no point in upgrading characters stronger than hell dungeons. Best days of EOS knights are certainly over.

The game devs should have worked more on the economy of the game since the economy aspect is what is really enhanced by blockchain.

Maybe materials should have a timer until they are "rotten" or "rusty", this would decrease the supply of everything...

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