Decentralization – Delusional Cornerstone in Encrypted Space
With decentralization in Blockchain Space, it's such a thing. The idea, proposed by Satoshi Nakamoto, the inventor of Bitcoin, is particularly obvious to crypto enthusiasts. Eliminating the trust of individual institutions towards a distributed network should enhance security and distribute control more equitably. In practice, implementation is sometimes difficult.
For example, mining bitcoins. (At the latest) since "extraction" of the main market-capitalized cryptocurrency has become popular, "mining pools" have increasingly formed. This implies that computer groups join to compete with other Bitcoin miners or other pools for the next valid blockchain block. Who creates, therefore the monetary incentive in the Bitcoin system, gets a reward of 12.5 BTC units currently. This award is requested by individual companies, such as Bitcoin Mining Chip Manufacturer, Bitmain, to create their own. For this, the company has been criticized repeatedly.
Centralization at EOS
The cosmos EOS must also fight against the tendencies to centralization. The EOS delegation in New York recently complained that six Altcoin Block producers in total were controlled by a single entity. On Twitter, the company expressed its dissatisfaction on November 27:
1 / Six producers registered on EOS are managed by a single entity. This is unacceptable. Who does search improvising forgive? Keep reading to find evidence and URLs: pic.twitter.com/5ZhFvOWqPB
– EOS New York (@eosnewyork) November 27, 2019
Six registered EOS producers (per block) are controlled by a single entity. This is unacceptable. We have registered the signatures of the top 50 registered block producers so that all token owners can know who approves of such misconduct and who does not approve it. (…).
In another article, the EOS team exposes the six entities involved and suggests exiling them from the EOS network. But the centralization criticized by EOS New York does not necessarily come from "faulty acts" of block producers. The consensus mechanism used in EOS seems to invite centralization.
Proof of participation: an invitation to centralize
Unlike Bitcoin, which relies on the proof of work "proof of work", EOS relies on a mechanism of evidence of participation by delegation. Basically, this means that whoever has more chips also has more voting rights. Although normal users, unlike the challenge proof mechanism, can not produce blocks, they can choose block producers. One can think of a joint stock company: those who hold a larger stake in the company also have more voting rights. Decentralization looks different.
However, what is added in this case – and does not make the whole more decentralized – is the exposure of each entity and the exile demand of the network. The EOS New York delegation is demonstrating its supremacy by calling for the exclusion of individual network participants seeking to take advantage of the EOS network incentive system. Once again, decentralization is different.
Criticism of EOS
Already in November 2018 had been criticized the platform. Blockchain analysts took the EOS network and came to the conclusion that EOS was not a "real" blockchain. Even then, the critics of the block producer EOS were strong. The consensual conclusion of Proof of Stake thus had no Byzantine tolerance to breakdowns (BF), which, according to analysts, distinguished a "real" blockchain. In addition, it was said at that time:
EOS block producers are highly centralized and users can access the network only by using them as intermediaries. Block manufacturers provide a single point of failure for the entire system.
It remains to be seen whether EOS will eliminate this source of error.