By
Andy Watson
April 26th, 2024
Within a span of three months, Weiss Crypto Rankings upgraded and then downgraded EOS resulting in a buzz with some calling the rankings agency deceitful for making decisions using unreliable data.
Weiss Crypto Ratings announced on June 7 that it will downgrade the technology score of EOS. The US-based economic research agency noted that EOS has severe problems with centralization. The move comes barely three months after it put the Block.one blockchain protocol among the top three blockchains alongside Bitcoin and XRP.
Weiss said that Block.one has taken no essential measures to enhance the protocol. Moreover, not even the firm’s event last week, where it launched Voice, its upcoming social media platform, did anything to address the centralization issues. The research agency said:
“It’s now up to ADA to launch a truly decentralized POS blockchain.”
Weiss is Deceitful?
Weiss’ take on EOS appears drastic than well-researched. Earlier, the same agency put EOS’s protocol ahead of other blockchain projects and even calling it A-grade. That favorable rating was awarded despite many complaints and unfavorable reports against the centralized nature of the EOS blockchain. For instance, Los Angeles-based Whiteblock termed EOS as a glorified cloud computing service that has no blockchain’s most integral features like immutability.
The Whiteblock report was made in November 2018, four months before EOS was awarded the top position by Weiss on their list of the best blockchain projects. That scenario shows that Weiss majorly ignored many fundamental aspects while rating EOS higher than all other blockchain projects.
A protocol specialist at Bison Trails, Viktor Bunin, thinks that Weiss ratings are untrustworthy. He says that nobody should believe any Weiss ratings on blockchain projects and cryptocurrencies since it uses a broken and opaque ‘proprietary’ mechanism. Bunin wrote in February 2018:
“Something like EOS, which is certainly promising, receiving a higher score than Bitcoin is a clear sign of faulty judging criteria. This isn’t meant as a knock against EOS or any other cryptocurrency on their list, but these results just don’t pass the smell test.”
Is it Advisable to Invest in EOS?
Nothing is wrong with centralization provided that the company in charge of decision-making is making all the right decisions. EOS maybe is not a better blockchain. Thus, it could be very well overhyped. However, as a standalone project, backed by a well-funded start-up like Block.one, it has room to grow. Growth will boost EOS adoption just like any other technology out there coupled with risks and rewards.
For now, Weiss Cryptocurrency Ratings rates Bitcoin, XRP, EOS, Ethereum, or any other blockchain based on peculiar crystal ball metrics. Therefore, it is highly advisable for investors to ignore these wannabe blockchain analysts.
Why Did Weiss Downgrade EOS?
The decision to adopt a consensus algorithm that is flexible did not go down well with everybody. Every blockchain project that seeks to launch a mainnet wants to meet the conditions of the blockchain Trilemma. These conditions are hard to meet although they seem smooth to the eye. Thus, developers must always make a decision. Block One chose to blend security and scalability over decentralization.
Subsequently, it demanded activation of the proof of stake, similar to Ethereum’s PoS that it plans to leverage on after Serenity. The EOS team took all the heat and criticism from that decision. That network is vulnerable although it has an architecture featuring 21 elected Block Producers that cater to governance, validation, and security.
If malicious elements aim at the block producers, they can cripple the entire system. As a result of that, the Weiss Ratings decided to downgrade EOS.