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EOS Network Overload - Users are Unable to Vote for Block Producers

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  • Vladislav Sopov
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    Users are unable to send EOS because of CPU issues and increased network activity over last two days. The problems may have been caused by... an airdrop.

EOS Network Overload - Users are Unable to Vote for Block Producers
Cover image via www.123rf.com

Over the last 24 hours, an overload in the EOS network has lead to new challenges for users. Some EOSians faced abnormal CPU usage, in which a transaction of $100 USD worth of EOS consumed 24% of a dPoS participant's CPU. More and more users were unable to send their EOS to vote for new block producer. Well-known block explorer and wallet Blocks.io tried to help them, granting 5 free transactions for every Scatter user. Since yesterday, some manuals have been released on how to stake the CPU in favor of another account.

Some analysts have investigated into the cause of this overload, and it was determined to be organizers of an infamous airdrop that flooded the network. This is similar to an incident that occurred five months ago that resulted in the termination of a previous blockchain project because of a conflict and mutual accusations.

This sad state of play lead many EOSians to accuse the block producers of collusion. Block.one, the organization behind the Eos.io blockchain, has kept silent while the users demand for "new governance ... that stops vote buying, stops exchanges from voting, stops BP collusion and allows for only 1 vote per token". The victims of the CPU crunch are also hinting at a long-time discussion about the centralized nature of EOS, and are asking Block.one to prove that "EOS is not a security".

On November 1, 2019, multiple EOS (EOS) users accounts found that the dApps failed to process their transactions. There were also complaints about CPU overuse and expressed concern about lending impossibility. Some community participants even suggested that's the right time to ask the Block.one to support the system with extra tokens.

Stress Test For EOS

While trying to find out the root of the problem, a user noticed 46 million EOS worth on REX were rented for the CPU. This resulted in a system overload and a lack of liquidity. It also reflected on abnormal EOS network usage metrics, such as a 1000x increase in CPU cost, followed by a 4x increase in CPU use ratio. 
 

Cost of CPU in EOS network (in ms per EOS)
Image: https://eostitan.com/charts?cpuCost=12,12,spline 
CPU Utilization ratio in EOS network
Image: https://eostitan.com/charts?cpuUsage=12,12,spline

After a while, the confused users figured out that system congestion was a result of one EOS-based dApp airdrop. People were asked to create new EOS accounts in order to order to obtain their rewards. This resulted in a rapid influx of new accounts as every airdrop participant was required to operate with a certain amount of EOS RAM, This also resulted in the CPU anomaly. Unfortunately, major inconveniences were experienced by those who never participated in airdrops.

Will This Happen Again?

This situation looked similar to the infamous Cryptokitties story, when the euphoria for NFT (collectible tokens) resulted in a dramatic increase in gas prices on the Ethereum network. Aaron Cox, Developer of the EOS-based wallet Greymass, said that this situation can be symptomatic when developing a network:

Today's EOS congestion is an interesting scenario, one in which users are incentivized to use (arguably "burn") their own resources in exchange for a portion of a new token distribution.

What do you think? Are the situations somehow connected with the over-centralized EOS network? How can we avoid it in the future?

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About the author

 Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockhain. Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

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Ripple Once Again Tries to Toss Class-Action Lawsuit, Insists XRP Is Not a Security

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  • Alex Dovbnya
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    Ripple makes a final push to dismiss the damning class-action lawsuit ahead of a court hearing that is scheduled for January 2020

Ripple Once Again Tries to Toss Class-Action Lawsuit, Insists XRP Is Not a Security
Cover image via 123rf.com

Ripple has once once again asked a federal court to dismiss the pending class-action lawsuit over selling illegal securities, a new court filing shows.

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The company reiterates the same "statue of repose" argument, which means that the plaintiffs failed to meet a legal deadline for filing the suit. Ripple started selling XRP to retail investors back in 2013, which means that it was way too late to bring legal actions against it back in summer 2018 after a bar to a lawsuit was imposed in 2016.    

The blockchain behemoth also continues to insist that XRP is not a security, but it called this issue "irrelevant" to their latest motion, which is why it didn't address this point in-depth. It's not the first time that Ripple tries to dodge the big question that is the cornerstone of the long-lasting legal battle. 

"XRP is not a security, but that is irrelevant for purposes of this motion. Even if XRP were a security, Plaintiff's claims still fail as a matter of law,” the filing said.   

Ripple's previous attempt to throw the suit out of the court didn't bode well. As reported by U.Today, Bradley Sostack, the leading plaintiff in the ongoing case, believes that the defendants are still liable for selling illegal securities. The parties are expected to duke it out in court in January 2020.  

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XRP's status as a security remains a point of contention within the cryptocurrency industry. Crypto influencer BitLord recently slammed Ripple for dumping their native tokens on investors to acquire businesses.    

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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