There have been a handful of gigantic initial coin offerings (ICOs) since they first became popular back in 2017. The likes of Telegram raised around $2 billion through their efforts, despite never holding a public sale. EOS was a sale that lasted for about a year and they raised a whopping $4 billion.
It has just gone live and it had seemed to have been moving along in an efficient manner, until recently. There has now been some controversy within the crypto community about their process and procedure, particularly in relation to how their voting system operators and how they block producer candidates are chosen.
Why is there so much controversy?
EOS was initially created using the Ethereum blockchain and they had the ultimate goal of being a competitor to this network down the line by improving many different features, predominantly the issue that has plagued both Bitcoin and Ethereum – scalability.
The start of June was supposed to see their own blockchain launched, but this did not materialise. There was a vulnerability found in their code by a Chinese security company last month which meant that parties would have the ability to create their own EOS tokens from nowhere. There was another flaw found by them a couple of weeks later which they claimed would give someone the ability to take over control of the complete system. There have been numerous other bugs and flaws discovered since.
There are many being worried that the inherent decentralisation of EOS is being threatened before it has even launched. There is also the significant issue whereby with the current prices, a block producer will be able to make profits worth on average $2.5 million annually.
This means that there is going to be an incentive in place for these people to try and stay ahead of the chasing pack, doing whatever it takes. EOS has always wanted to be a network which is faster and more efficient than all others, as well as being able to scale. However, in order to reach these lofty targets, they may compromise too much with regards to being an actual blockchain.
This is because they want to launch with appointed block producers, which once voted on, will be replaced by elected block products upon which the community votes. It all seems to be up in the air and certainly it will be an interesting case to watch as it develops.