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EOS Block Producer “EOS New York” has published data purportedly showing that six registered producers on the network are managed by a single entity.

In a tweet published on Nov. 28, EOS New York raised concern over the apparent levels of centralization and misconduct, claiming that:

“Six registered producers on EOS are managed by a single entity. This is unacceptable. We have requested the signatures of the top 50 registered producers so that all token-holders may know who does and who does not condone such impropriety.” 

Block Producers and “delegated proof-of-stake”

In the EOS ecosystem, Block Producers (BPs) are analogous to miners on the Proof-of-Work-based Bitcoin (BTC) blockchain or staking nodes on a Proof-of-Stake (PoS) protocol. 

The difference with EOS lies in the network’s consensus mechanism, “delegated  proof-of-stake,” whereby — in keeping with the governance terms set by the EOS’ constitution — network participants are able to stake their tokens to vote for BPs as “elected delegates.” 

Rather than merely staking EOS tokens as in a PoS system, Block Producers stake their investment in the network in the form of infrastructure, community support and development.  

For those seeking votes to become a BP, a barrier to entry is, therefore, having sufficient resources to provide the infrastructure needed to drive the proper functioning and continual growth of the EOS ecosystem.

In its Twitter thread, EOS New York provides apparent evidence from the Registry Domain database, which suggests that each of the six domains it suspects of being managed by a single entity “were registered at the same time by the same person/org.”


Screenshot provided by EOS NEW York via @eosnewyork, Nov. 26

Community response

Responding to EOS New York’s tweet, Twitter user James Mart argued that approaching the problem manually and forensically is merely “whack-a-mole,” demanding time and at best offering a “temporary fix.” He advocated reforms to governance and voting mechanisms instead:

“1T1DV and stake-time weighted voting via Dan’s stake pools needs to be our top priority right now. It will permanently solve this issue.”

Mart’s response was challenged by crypto trader Justin Buck, who located the problem in the consensus mechanism itself:

“DPOS is not BFT [Byzantine Fault Tolerant]. Let’s be upfront and honest about it.”

As previously reported, EOS developer announced the release of version 2.0 of the EOSIO open-source protocol this October, which was intended to provide performance, security and smart contract efficiency gains.

Cointelegraph By Marie Huillet , 2019-11-28 10:39:00 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

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Nick Chong , 2019-11-10 12:00:38

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