EOS Locked 7 Accounts and It Has Implications for Everyone in Crypto

gepubliceerd op by Coindesk | gepubliceerd op

As the migration from the ethereum blockchain to EOS own blockchain took place, EOS holders had to register their new EOS wallet addresses.

Within the cryptocurrency space, that typically means a user's crypto is gone forever, in the case of the EOS blockchain migration, the fraudsters weren't able to immediately sell the tokens and run off with them.

Within the EOS rules, all but 10 of users' EOS tokens were staked when the blockchain went live.

One released the code for the EOS blockchain, the EOS tokens on the ethereum blockchain were locked up in a smart contract - gone forever.

While most of the world's EOS holders were just watching and waiting to see if EOS would ever manifest as a public blockchain, a small subset of holders were panicking over the fact that one website or another had tricked them into losing control of their tokens on EOS. A few user groups then put together a site called EOS911 to help those that had been duped.

While the group that will arbitrate disputes, ECAF, already exists, according to interim ECAF administrator Moti Tabulo, the arbitrators had no jurisdiction, explaining that "This was due to a lack of mechanisms on the blockchain that ensure that EOS users agree to the EOS Constitution and binding arbitration."

Later, EOS discovers the theft, the aggrieved holder proves their case and EOS rolls back the trade.

Now imagine the attacker stole not one EOS token but thousands, and imagine that after the attacker traded many more times, EOS BPs rolled back the transaction.

"The root cause of the problem is that all cryptocurrencies except EOS are bearer instruments with degree settlement periods, and EOS looks like a cryptocurrency. But it is not a bearer instrument, and it has infinite settlement time."

In this recent instance, there's no such danger because ill-gotten EOS never left the genesis block wallets, but in the future EOS enthusiasts envision, where millions of transactions are running across EOS every hour, the token holders and/or the BPs might not catch these thefts so quickly.

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