Failed experiment called EOS: fake accounts, terrible coders, colluding block producers

The supposed Ethereum killer EOS apparently has significantly fewer active users than assumed. In addition, 27 dApps are said to have significant weaknesses. These allowed hackers to gain EOS tokens worth around USD 740,000 within the last six months.

EOS has taken on the task of replacing Ethereum as the blockchain platform for the development of decentralized apps (dApps). The Blockchain operating system, which uses the controversial delegated proof-of-stake consensus mechanism, is particularly popular with the Chinese government. Since its launch in June of this year, EOS has been leading the crypto ranking of the government-related CCID (Centre for Information Industry Development). The CCID justifies its appreciation of EOS among other things with its great ‘activity in the field of technological innovation’ and praises it as the ‘new generation of the public blockchain’. Critics doubt, however, that EOS is a blockchain in the true sense of the word, since the cryptographic verification of transactions is implemented but not a core component of the platform architecture. Tests by White Block also failed to even begin to prove the propagated 5,000 to 1,000,000 transactions per second even under ideal conditions.

Security deficiencies with 27 dApps

As Blockchain Truth reports, there also seems to be a gap between claim and reality in the number of active users. Analysts of the Blockchain security company PeckShield have taken a close look at the platform and found that only 37 percent of the more than 500,000 accounts are actively managed. 23 percent of the accounts are group accounts. PeckShield believes that the group accounts are likely to be used by Bounty Hunters and click farms. Especially the latter is a worrying development for the ecosystem. EOS is catching up significantly in the number of dApps compared to Ethereum. However, there seems to be a large number of fake accounts that artificially drive up user numbers. In the BetDice gambling app, from 35,000 daily users up to 33,000 are said to be due to fake accounts.

While you are here, have a look at our EOS price prediction for 2020.

Peckshield also found security leaks in 27 dApps. However, the error is said to be in the programming of the dApps, not in the EOS platform itself. Hackers had specifically identified these vulnerabilities, exploited them and in this way captured around 400,000 EOS tokens (at the current exchange rate around 740,000 USD). It remains to be hoped that the worldwide hackathon, the final of which will take place in Cape Town, will be able to plug some of these leaks.

Collusion is nothing new in EOS

Collusion among the 21 block producers in EOS ecosystem has been covered on multiple occasions on our site. Here is another refresher in this excellent research thread by CryptoMedication, Twitter account that likes to dig into the hidden, background intricacies of shady crypto projects.

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Damian Booker
Damian Booker

First thing to know about Damian is - he HATES shitcoins and has declared a war on them! Damian is a bitcoin hodler since early 2013. He used to mine Ethereum back in the day as well. Nowadays he likes to discuss bitcoin and its potential influence on the society organisation and governance. Damian hates fraudulent projects and his mission is to shed light on the maggoty scammers that have invaded the crypto space with their zero-value projects.

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