Thursday, June 7, 2018

A Second Reason Why EOS Can Take Blockchain Technology Mainstream.

Power To The Users

Bitcoin as well as Ethereum depends on a balance of interest between Users, Developers and Miners to keep each other in check. We are comfortable with this principle as it reflects the checks and balances we have between the legislative, judicial and executive branches of government. On deeper analysis we see that reality does not reflect theory. In all cases the system fails and some fails spectacularly.

Ethereum failed when the "imutable ledger" was rolled back basically with the blessing of the creator. Maybe it will never happen again but then it will always be a MAYBE. The stain is there - forever.

Bitcoin was plagued with years of indecision and infighting about increasing the blocksize and ended up with a chain split to resolve the disputed. This was what it was designed to do and we ended up with 2 significant chains in Bitcoin and Bitcoin Cash.

In both the above two examples the uses had very little say. They can only express their opinion after developers allowed them to choose.

EOS is different.

Block One are the developers and they release the software as an open source project for anybody to adopt, fork and use. Even though they will still continue to maintain the software they profess no interest in how their software is used, and have no control in its' adoption.

Block producers are the "miners" and they earn 1% of the 5% annual coin inflation. At any time there will be 21 block producers sharing 25% and 175 standby block producers sharing the remaining 75%. Being a block producer is very lucrative and all will aspire to get voted to be one of the 21 main producers.

Users vote for block producers at every block. This incentives block producers to work very hard at "serving" their users. They consider themselves servants and can be voted out at anytime. They have no security of tenure.

It would seem that a good strategy would be to bribe the uses to vote for them for example by sharing the mining fees. However this practice has been made illegal and no block producer will even think of adopting this as a policy.

Block producers will have to be seen to make positive contributions to the community. They have to continually campaign for users votes and support. They need to be innovative and relevant and to respond to any negative feedback immediately.

Another interesting feature is that no group can directly or indirectly hold greater than 10% of the coins. This prevents whales from controlling the ecosystem. The year long ICO was designed to spread the tokens to an as wide audience as possible.

Every blockchain is like a country with its' own governance system, checks and balances. Like countries the elected representative always profess to serve the people, and after being elected they are always subjected to corruption and regulatory capture. The temptations are too hard to resist.

The EOS blockchain is designed from the outset to give maximum power to the users. The system was designed with empowerment of the users as much as possible. It will be interesting to see how this plays out.

EOS has yet to be launched as its' own blockchain. So when is it ready? I think that it was "ready" the moment the balances on the two chains were verified, after all the software has already been tested for a whole year. Perhaps as a serious project they must be seen to be not too hasty and yet not too slow. Maybe it has to be an auspicious date like June 8.