EOS not a blockchain

EOS is “Not a Blockchain” and “Does Not Exceed 250 TPS,” Study Says

Whiteblock Inc, a blockchain research company, announced that it had completed its first independent benchmark test to the EOS blockchain, with results that are quite controversial and worrying:

“Based on initial interpretations of the resulting data, network emulation testing, and source code, the investigation has come to several conclusions about the EOS software:

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.”

These statements can be somewhat shocking for many fans and even analysts, especially considering how successful its ICO was, its position within the global market cap and the fact that it has been graded with the highest score in several cryptocurrency rankings such as those made by Weiss Cryptocurrency Ratings and the China Electronic Information Industry Development (CCID).

To perform the study, Whiteblock basically “cloned” the EOS network in the month of September and from that moment began to perform a series of tests without affecting the functionality of the original “blockchain.”

Besides concluding that EOS is not a blockchain, Whiteblock noted that the dPoS method used by EOS, besides being excessively centralized, is dangerous for the whole ecosystem. The block producers and the way the network is structured make its architecture look more like a “centralized cloud computing” than an actual peer to peer network:

“There is no need to request access from middle layers in the network or request permissions from centralized servers. Setting up an Ethereum node will entitle an individual to participate in the network and validate transactions. In EOS, consumers are not entitled to this right, as they are required to request access from block producers. Based on these findings, it becomes clear that EOS is fundamentally similar to a centralized cloud computing architecture without the fundamental components of a blockchain or peer-to-peer network. EOS block producers are highly centralized, and users can only access the network using block producers as intermediaries. Block producers are a single point of failure for the entire system.”

It also ended by questioning the claims of EOS being able to process millions of transactions per second. According to the results obtained by the test, the performance of EOS is lower… MUCH lower:

“As observed in the section on performance, the transaction throughput in the system does not exceed 250 TPS even in optimal settings with 0 ms of latency and 0% packet loss. During tests with real world conditions of 50 ms of round trip latency and 0.01% packet loss, performance dropped below 50 TPS putting the system in close proximity to the performance that exists in Ethereum.”

So far the EOS team has not issued any comments confirming or denying the test results. Full report available here

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