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EOS in Purgatory

June 13, 2018

 

With individualized network governance comes great responsibility. While the EOS main net has apparently launched, it also hasn’t, at the same time. For everything to be up and running, each person who is running an EOS node needs to vote on who should be trusted with processing network transactions.

 

Apparently, the principal problem is that this voting process involves each user broadcasting his or her private keys in a way that somehow proves ownership of the funds that they have in their individual wallets.

 

The exact requirement is that 15% or 150,000 of all of the owned EOS tokens are proved in this way, which also means that these users have “voted.” At this point, with only 7% of all tokens proven, the complete main net launch has hit a major snag.

 

With this specification in mind, it isn’t clear why the EOS development team announced that the main net had been launched on June 10th and as a result, why all of the major crypto news outlets seemed to support this announcement.

 

The easiest explanation for the reluctance of 93% of the network to vote is that the process, as mentioned above, depends on broadcasting one’s private keys. If you are not quite sure what a private key is, just think of it as the password that unlocks your Crypto wallet, that only you should have.

 

Most Crypto networks start out by reassuring their users that their private keys will never be compromised and can never be compromised for any reason, due to the protocols that run them, as is the case with Zcash and zero-knowledge proofs.

 

In short, with a verification technology like zero-knowledge proofs, only encrypted public keys are, in effect, used to prove ownership of funds as well as to prove the validity of transactions.

 

The fact that EOS ran a year-long ICO and then had this happen to them should definitely call for concern.

 

It is not common to ask users to do anything with their private keys that has any chance of compromising their wallets. With such an arguably large problem at hand, it appears logical to state that as of now, the future of EOS is in doubt, even if 15% of all tokens are voted with in the end.

 

How can a network call itself secure when at its core, it is promoting practices that entice the testing of its boundaries?

 

With all of this under consideration, it would be wise to keep your EOS tokens, off-line, if possible, at least until this process plays out.

 

 

 

By: BGN Editorial Staff

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