EOS, one of the most important blockchain projects in the market, has decided to take a very controversial decision. According to an ‘Emergency Measure of Protection Order,’ that is dated June 22, the EOS Core Arbitration Forum – also known as ECAF – has decided to block transactions from 27 different wallet addresses.
The text reads as follows:
“It is hereby ordered that the EOS Block procedures refuse to process transactions for the following accounts and keys indefinitely. (Until further official notice and instruction from the ECAF).”
But it is important to mark that there is no explanation about the situation. The note signed by Sam Sapoznick, in the capacity of ECAF Interim Emergency Arbitrator, does not specify which were the reasons that led to take these sanctions.
Critics And Support
The cryptocurrency community is already talking about this situation and giving their opinions about what happened here. There have been several critics coming from the community but also some defenders.
For example, critics say that EOS is not a decentralized network and that is subject to control by a centralized authority similar to a government. And this is not something that should be taken in an easy way. The US Securities and Exchange Commission is analysing each blockchain network to determine whether some virtual currencies are securities or not.
Supporters, instead, believe that the frozen addresses are involved in phishing scams that targeted investors during the migration from the Ethereum's blockchain. Furthermore, Kyle Samani, from Multicoin Capital, an important fund that has invested important sums of money in EOS, said that all the 27 accounts were doing spam attacks on the network.
At the moment, EOS’ approach to governance is a new experiment for the cryptocurrency community. Until now, it has never been tested and may provide great insights about how to manage other virtual currencies and blockchain networks. The company behind EOS is Block-One, which was in charge of conducting the year-long ICO to fund the EOS project.
EOS promotes decentralization in the crypto-ecosystem, but the EOS has an important level of centralization if it is compared to Bitcoin’s proof of work (PoW).
EOS User Posts Private Key
The EOS News do not end here. We all know that we shouldn’t publish private keys on internet or store them in devices that may be connected to the internet. But a EOS backer decided to challenge that.
A Steemit user known as ‘eosinsider’ published its private key: 5K5V1MY4iPBvT1vZ8rdX89JVDMJXosmRqKGoUxCfYaVck69qNU2. Apparently, it belongs to an account that is named ‘yostealmyeos,’ which holds 5 EOS.
The user believes that the on-chain governance model is designed to protect users and feels confident publishing his private keys online – which we do not recommend.
One of these mechanisms that protect victims from malicious attacks is the platform’s arbitration process. Users affected can appeal their cases to an arbiter like the EOSIO Core Arbitration Forum. The entities are able to freeze these malicious accounts and recover the user’s funds.
Supporters of this system say that this new governance is necessary for a platform that may be processing millions of dollars daily. Users that do not know anything about blockchain security can feel protected with by those in charge of taking care of the network. This is very related with what we mentioned before about the 27 frozen accounts. At the moment, the cryptocurrency community is waiting to hear an answer about why the ECAF decided to take such a decision.
According to the reddit user twelker1625, there is an explanation about why the accounts were frozen:
“The accounts were frozen at the request of the rightful owners AFTER they submitted proof. Though the system is still in its infancy and not finalized, it is working as it was designed to do.”