In the crypto industry, new projects are emerging rapidly. One of the brightest representatives was the EOS platform, which has been developed since mid-2017. The project is a platform for decentralized applications with the highest transaction processing throughput, flexible and convenient account security model and many effective technical solutions.
EOS was the answer to the challenges of implementing smart contract capabilities in Ethereum in a multitude of promising areas. Bitcoin and Ethereum in their current state are simply unprofitable and inconvenient to use for some areas that require a lot of network bandwidth, and can sacrifice a degree of decentralization for this.
For the developer of smart contracts, leaving the blockchain aside, EOS actually offers a database with a system of accounts, access and logic of which is controlled by the developer of the contract. EOS allows you to focus solely on the business logic of applications, giving the developer almost all the necessary tools for working with accounts and their data. That is why EOS can practically be called a blockchain operating system.
The creator of EOS is Block.one. The platform’s co-founder is industry veteran and blockchain visionary Dan Larimer (co-founder of Bitshares and Steemit). The platform code is freely available on Github. Community members are free to submit pull requests, but Block.one has the final say.
There are also third-party developers who create related products such as wallets, voting tools, and plugins. This is often done by the block validators themselves on the EOS network (block producers).
EOS quickly rose to prominence and became one of the most anticipated blockchains in the industry. The EOS mainnet launched in 2018, but things haven’t gone so smoothly since then.
Some of the largest contributors to the project began to turn down the offer, and accusations of vote swaps began to surface. In a decentralized system, where decisions must be based on the votes of coin holders, the concept of exchanging votes for monetary rewards has become a threat to the original promises of a decentralized system.
It became obvious to the developers that it is impossible to obtain funding for development on the platform without the support of the largest investors. The language barrier between most stakeholders in China and Western developers has become an obstacle to decentralization.
The developers were promised funding through development on a decentralized platform, but in reality, this practice became more and more difficult and sometimes impossible. As with many other crypto projects, the ambitious promises did not materialize from the start.
In May 2020, the Crypto Assets Opportunity Fund, or CAOF, filed a class action lawsuit against Block.One for failing to deliver on its promise of decentralization.
The lawsuit said Block.One used its recent passion for cryptocurrencies to lure investors into illegal securities sales.
The purpose of this lawsuit is to hold the founders of EOS accountable for defrauding their investors into investing millions of dollars in an unregulated and failed cryptocurrency project. Would there be a lawsuit if the project was successful? Perhaps not, but the price of EOS speaks volumes.