Cryptocurrency ICOs have been attracting many shrewd investors and dumb money over the past few months. Quite a few projects have raised significantly more money than anticipated, which shows there is a degree of desperation associated with these ICOs. EOS is one of the more ambitious projects we have seen to date. However, Vitalik Buterin feels there are some issues with the project which must be addressed first.
3. EOS FEE STRUCTURE
Similar to any other project using blockchain technology, EOS has an interesting mechanism when it comes to transaction fees. It seems the project will be using a technique to determine how many transactions people can send based on the amount of tokens they hold at the time. This means users will need to buy a certain amount of tokens in order to spend them. This is an unnecessary exposure to volatility, according to Buterin. His argument is pretty solid.
Not everyone wants to spend hard-earned money on an unknown asset in order to use a blockchain. Even the people who want to use EOS just a handful of times will be needing to buy a lot of coins and sell them all later on, assuming the price has not collapsed. It is a less-than-stellar business model which will hurt EOS’s chances of succeeding in the long run. Early adopters will need to pay for everyone else to use the network in the future.
2. 100,000 TRANSACTIONS PER SECOND?
Scalability is an integral part of cryptocurrency and blockchain technology. Even the bigger currencies have been struggling with scaling, including Bitcoin and Ethereum. EOS may not fare much better, despite its bold claim of processing 100,000 transactions per second. Achieving such a degree of scalability would seem pretty much impossible right now. The project claims to be able to make it happen, although it will be incredibly difficult to do so.