Live with CryptoTradersPro Talking about DPOS, EOS, and eosDAC!

I had the privilege of being on a live stream with https://cryptotraderspro.com/ and @eostribe talking about Delegated Proof of Stake, EOS, and eosDAC. You can view the full recording of the live show here:

The more I get involved in the cryptocurrency space, the more I think we can all learn and grow together to improve the world. Here are the questions we considered before the show, and I went ahead and put in some of my thoughts I was thinking before the show.

1. In 1 minute or less, what is EOS in your own words?

   EOS is the AWS of blockchain technology. It's where enterprises businesses around the world will go to build decentralized applications for mass adoption.

2. Will Exodus users be able to claim the EOS airdrops?

   Yes, but they may have to export their EOS private key. Many people get confused into thinking the tokens "live" in their wallet. They really only live on a blockchain and the wallet (via the private key) gives you access to them. If you have the private key, you can access the tokens it controls in any system which supports those tokens.

3. Lots of people have asked about the DAC tokens and when they will be made available. Where will they trade?

   Our website lists all the exchanges that have pledged to support the eosDAC token here: https://eosdac.io/exchanges/ You can also view active markets on Coin Marketcap here: https://coinmarketcap.com/currencies/eosdac/#markets The tokens will be available as soon as we've properly tested our token contract and are completely confident with it's deployment and our airdrop tools.

4. There is some confusion about Block One’s role and the block producers. Is the EOS blockchain privately owned, public, open source or what is the EOS governance model?

   This is a really good question. I wrote up something up about this last night relating to how the EOS constitution isn't really a contract right now. It's more like a code of conduct. That said, the blockchain is ultimately governed by the BPs who create the consensus and owned by the token holders who vote them in place. Block One is creating the code, but if needed we'll do what needs to be done to keep the system evolving. We control the repo as a community.

5. How about the Block Producers? Are they corporations, DAOs or some other structure? EOS New York has been extremely transparent about their ownership structure. Will we see similar reports from the other BP’s? Is there competition between BPs or groups of BPs?

   We're a DAC (or DAO). There will always be competition when money is involved, but I think so far it's been a healthy collaborative competition where we're all pushing each other to be better and do more.

6. Is there a minimum amount of EOS required to be a BP? Are there requirements for how staked EOS must be held by BP’s? Centralized to an on-site server? Distributed across many? Or can it simply be staked on Amazon’s servers?

   Talking about "staked" tokens really is separate from the servers the block producing software runs from. The whole bare metal vs. cloud servers is often a red-herring argument. The people doing the server administration and the systems they set up is what matters. New servers can jump into action at any time with other signing keys if needed.

7. DPoS strikes me as a regulatory attack surface. Regulators seem like they could make the case that stakers are unlicensed money transmitters and that they are receiving dividends. Ethereum bypassed regulation very specifically because of PoW. How will EOS avoid the requirement to register as a security while utilizing a staking model?

   If the only requirement for being considered a money transmitter would be if you facilitate the protocol which allows transfers, then all ISPs would be money transmitters also. I don't think the mechanism for securing the blockchain matters much.

8. Do Block Producers get a block reward or is the incentive to produce blocks just simply the growth in value of staked EOS and airdrops? Why be a block producer?

   Yes, there is a block reward with each block created. Secure the chain, earn value.

9. DPoS obviously solves the shortcoming of low txn/s compared to PoW, but it introduces new issues. We’re already seeing the rise of “Fly to Mars” and the potential for others who break the rules. How can EOS mitigate the threat of powerful, nefarious players in the ecosystem?

   No economic system can get beyond the 80/20 rule (Pareto's principle) for long, so there are always going to be concerns about those small groups of people with the majority of the money. The best thing we can do is inceltivize them to remain good actors and create new tokens with new opportunities for new ideas.

10. There has also been discussion about Bitfinex using customer funds to qualify to be a BP. Is this ethical? Bitfinex, EOS and Tether share some relationship too. What are your thoughts on some of those controversies?

    If they get the permission of their users to act as a proxy on their behalf, that's understandable. Ideally people should control their own tokens. Exchanges are for exchange, not ownership (IMO). If you don't control your private key, you don't control cryptocurrency.

11. Block producers are chosen by vote on the mainnet, but before the mainnet launch, how are the initial producers selected? Is it a different voting mechanism? Is EOS a trusted set up?

    The community came together in a dynamic fashion to come up with a criteria for block producers qualified enough to be the ABP (anonymous block producer). A list of 11 were created and a random entry was picked from that list. The set up is trusted becuase there was plenty of time to validate every single bit of data on that running chain to ensure every system contract and account balance is correct. This validation was done multiple, indepedent sources.

12. Having been involved in the Bitcoin space since 2013, I’m heavily conditioned not to give up my private keys for any reason. However, voting on EOS requires use of private key. Many users will not vote because of this. How quickly can Ledger or Trezor support be integrated to mitigate the exposure of private keys? Is Tokenika’s offline solution a viable option?

    All wallets that require signing of any kind require a private key. The bitcoin QT did as well. I lean towards applications like Greymass' eos-voter which are open source and you can compile yourself over websites where you have to trust DNS.

13. For those who registered their ERC20 tokens, it looks like their tokens are currently allocated so 10 are not staked and the remaining balance is split 50% to CPU and 50% to Bandwidth? How/why was that determined? If someone plans so be a long term investor is that the best allocation of tokens? I think we can also tie up coins in a smart contract so that they are leased or rented out but not sure how to do that? You can also buy and sell RAM Is there a good resource that explains all the various options for investment participation?

    Chintai will allow for a token market place for renting EOS for use in staking for RAM and CPU.

14. At face value, EOS seems like a simple Ethereum competitor. But a deeper look shows a high level of moving parts. What is best resource to get a grip, in simple terms, on how to participate in the EOS ecosystem as a user, developer, investor or whatever else is appropriate.

    That's still being determined. Join our Discord, Telegram, YouTube, Twitter and more to learn. :)

15. What is your opinion of Bitcoin? What’s your favorite coin or token in the cryptosphere other than EOS?

    I think Bitcoin struggled from a lack of on-chain governance. I learn form many coins and own dozens including Bitshares, STEEM, and SmartCash.

16. What does absolute success/victory look like for EOS? Replacing Ethereum? Replacing Bitcoin? Everything on earth using EOS as an operating system? What does the dream look like at scale?

    No replacing needed. Just enabling applications and use cases that were previously not possible. A platform for building DACs.

17. What is the biggest misconception about EOS that you wish you could change?

    That it'll be either our utopian savior or that it's some scammy s***coin. It's just an evolution. We don't know how beneficial it will be or what new challenges it will discover and work to overcome.

18. Is there anything we have missed?

    Account recovery. 500ms block times. Last irreversable block. DPOS BFT—Pipelined Byzantine Fault Tolerance. On-chain governance with contracts.

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Luke Stokes is a father, husband, programmer, STEEM witness, DAC launcher, and voluntaryist who wants to help create a world we all want to live in. Learn about cryptocurrency at UnderstandingBlockchainFreedom.com

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