EOS “not truly decentralized", blockchain testing company says
On the 1st of November, first blockchain testing company Whiteblock Inc, has conducted an independent benchmark testing of the EOS software. Results have shown that EOS can’t handle the number of transaction previously advertised. Previously, EOS blockchain explorers have show that network can handle more than 1200 transactions per second. Although Whiteblock’s study shows, that the actual number is only 250 transactions per second.
“The research results prove inaccuracy in performance claims, and concluded, that the foundation of the EOS system is built on a flawed model that is not truly decentralized.”
After stress testing EOS network, Whiteblock came to these conclusions:
Quote
- EOS is not a blockchain, rather a distributed homogeneous database management system, a clear distinction in that their transactions are not cryptographically validated.
- EOS token and RAM market is essentially a cloud service where the network provides promises for computational resources in a blackbox for users to access via credits. There is no mechanism for accountability due to the lack of transparency on what Block producers are able to create in terms of
computational power. - EOS throughput is significantly lower than EOS initially claimed in marketing materials.
- EOS suffers from consensus failures and lacks Byzantine Fault Tolerance.
Unquote
The conducted test could have been a great disappointment for anyone involved in the EOS. However, it hasn’t reflected on the price negatively. In fact, since 1st of November EOS has been gaining value agains the USD.
After rejecting the uptrend trendline , back on the October 31, EOS has grown by 13%, while moving from $5 to $5.7, where it is currently trading. On its’ way up, EOS/USD broke above the $5.3 resistance level , confirmed by the 23.6% Fibonacci retracement and level where high trade volume has been recorded. Then, resistance became support and on the lower timeframe EOS started to produce higher highs and higher lows. Looking at the RSI oscilator, it rejected the support and then broke above the downtrend trendline . This could have been the bullish sing for the EOS, and if that is the case, price will continue rising. First resistance and the upside target to watch is located near $7 physiological resistance. This price goes in line with the 23.6% Fibonacci level as well as the downtrend trend line and the 200 Moving Average.
Bullish scenario:
The support at $5.3 will hold, pushing price up to $7 or higher.
Consolidation scenario:
Daily close will be below previously established high at $5.6.
Bearish scenario:
EOS daily close below $5.6, followed by the break below $5 and $4.7 support.
IMPORTANT LEVELS TO WATCH:
$7.0
$5.3
$5.0
$4.7
$4.0
See the latest prices across multiple exchanges at https://www.cryptaldash.com