The EOS consensus mechanism is currently under fire after EOS New York revealed that one entity manages six of the recognized block producers in this ecosystem. This has brought the platform’s decentralized nature under question given its fundamentals are based on the blockchain concept.
According to EOS New York’s tweet on November 28th, there is some level of misconduct and centralization within the EOS network. As a result, they have taken the initiative to make these operations more transparent for stakeholders;
1/ Six registered producers on EOS are managed by a single entity. This is unacceptable. We have requested the signatures of the top 50 registered producers so that all token-holders may know who does and who does not condone such impropriety. Read on for evidence and the URLs: pic.twitter.com/5ZhFvOWqPB
— EOS New York (@eosnewyork) November 27, 2019
EOS DPoS Consensus Shortcomings
EOS is among the leading smart contract platforms within the blockchain space as of press date. The network uses a Delegated Proof of Stake (DPoS) algorithm for consensus within its blockchain platform as opposed to the popular protocols such as Proof of Work. Basically, Block Producers (BP) play the role of miners and could be voted to this position by other network participants who have staked their coins. The BP’s can, in turn, stake their portfolios to contribute to the EOS community growth and network infrastructure.
It, therefore, follows that the EOS ecosystem can easily be centralized given the power acquired by this entity that controls six-block producers. Furthermore, it is much harder for prospective BP’s to be voted into the position. EOS New York has consequently advocated for the removal of these BP;
“We are therefore proposing the removal of the following registered producers: stargalaxybp, validatoreos, eoszeusiobp1, eosunioniobp, eosathenabp1, and eosrainbowbp,”
The EOS blockchain community have since been vocal about this development; one school of thought believes that updating governance and voting design will improve the network. However, others have identified the DPoS consensus itself as the main challenge EOS blockchain faces.