Crypto Digest: EOS Constitutional Crisis Explained, Is TaTaTu the Netflix Killer?

If ever there was market noise, cryptocurrencies take the cake. Anyone who has been watching the blockchain and cryptocurrency space for the past few years will tell you that the change has been phenomenal, especially in the past 6 months.

What was once a conglomeration of crazy theorists, small time enthusiasts and early adopters has become a bandwagon of self-proclaimed experts, reddit spruikers, and Youtube shills.

It is becoming more difficult to filter out market noise, with an endless supply of Youtube videos, reddit posts, Telegram channels, and Discord groups.

In this series I’ll be bringing together a snapshot of what is happening in the cryptocurrency space. It won’t be as technical or deep as some other analyses or articles, but for those who are time-poor or just want to filter out the market noise this will be a good place to stay up to date.

So without further ado, this week in the Cryptosphere:

Foxconn, eBay, PwC join Ethereum Enterprise Alliance

The Ethereum Enterprise Alliance (EEA) announced the addition of 74 new companies to the alliance this week including Chinese manufacturer Foxconn, online sales platform eBay and accounting giant PwC.

For those unfamiliar with the governance behind Ethereum, the EEA is a nonprofit organization that was formed to connect Fortune 500 companies and smaller startups with the Ethereum ecosystem. It is one of the keys to achieving widespread adoption of the Ethereum network, and has been steadily gaining momentum since it’s inception in March of 2017. The current list already included companies such as Accenture, BP, Credit Suisse, ING, JP Morgan, Intel, Microsoft, and UBS.

Partnership with industry is a key step towards achieving adoption, and Ethereum are currently front-runners in this regard.

See the full list of additions.

ELI5: The EOS Constitutional Crisis

Just weeks after it’s much anticipated mainnet launch, the EOS platform has been already been plagued by difficulties. Dan Larimer, the CTO of EOS, has called for changes to the EOS constitution and voiced concerns on the EOS Telegram Channel.

“We have seen that if you give people arbitrary power to resolve arbitrary disputes then everything becomes a dispute and the decisions made are arbitrary. The more power the arbiter has, the more vicious and petty the disputes become and the less predictable the outcome.” — Dan Larimer

The issue has arisen from the approach EOS has adopted towards decentralization. Interestingly, this was one of the key features highlighted in the whitepaper that differentiated EOS from other platforms such as Ethereum, NEO, or Cardano.

Unlike other more decentralized platforms, EOS is designed to be less decentralized to allow for better scalability and speed. They were aiming for a middle ground that wasn’t yet covered by other platforms.

Ethereum essentially owned the decentralized platform space in 2017, and new competitors were popping up every few days; so EOS targeted a different type of market. EOS argued that not all blockchain applications require maximal decentralization, and that many would actually value the speed of a network over complete decentralization.

The EOS platform would essentially compromise on the level of decentralization to optimize speed and throughput.

To implement this quasi-decentralization, the EOS governance model utilizes an arbitrator called the EOS Core Arbitration Forum (ECAF). The ECAF acts as an authority that is responsible for handling any disputes on the platform. The concept was that the ECAF would be the EOS safeguard against hackers and trolls on the network.

On the 22nd of June, the ECAF froze 27 accounts and directed block producers to stop processing transactions from these addresses. The issue with the freeze was that there was no due process and no explanation. Block producers were simply ordered to freeze the 27 addresses and ECAF stated that reasoning was to be provided at a later time.

Recently, one of the major block producers EOS New York have decided to ignore the ECAF directive, essentially causing a constitutional crisis as major players on the network begin to question the established authority.

In essence, the ECAF is acting as a centralized authority without due process. In a regulated market this would be the equivalent of a regulatory body such as the SEC freezing assets without due cause.

As a result, the ECAF is losing support from the community. Dan Larimer has called for a constitutional referendum to amend the existing constitution so that block producers cannot modify or freeze contracts that are operating as the initial code intended. A 15% vote is needed to amend the constitution.

How the EOS community respond to this crisis could make or break the platform, as competitors such as Cardano and Ethereum are circling and look to capitalize on the failures of EOS.

Read more about what Dan Larimer has to say about difficulties facing the platform.

TaTaTu: Is this the Netflix Killer?

Does the red text remind you of a particular streaming company?

TaTaTu Token has raised $575 million to make it the 3rd largest ICO in history behind Telegram and EOS.

For those familiar with Steemit, TaTaTu is taking a similar approach as a decentralized media platform. Users earn TTU tokens by streaming films and by voting on content they enjoy, essentially acting as curators for content and telling the platform what they want to see more of. Content creators earn tokens based on the popularity and number of views that their films receive.

While TaTaTu will focus on film early on, there is scope to add sports, games, and music to the platform in the future. Look out Youtube, Netflix and Stan.

WatermelonBlock partners with IBM Watson

WatermelonBlock announced a partnership with IBM’s Watson AI platform on the 27th of June.

WatermelonBlock will be utilizing IBM’s AI to compute big data and generate market sentiment rankings for cryptocurrencies and ICOs. In a fast-paced cryptocurrency market that is shifting from day to day, WatermelonBlock aims to provide a better snapshot of market sentiment for investors.

An iOS app is currently in it’s final stages of development, with ICO occurring in Q3 of 2018. Keep a close eye on this one, it could become a great tool for cryptocurrency investors.

Check them out.

Facebook Advertising Ban Reversal

Facebook is slowly reversing it’s ban on cryptocurrency advertising and has announced it will allow a selection of approved companies to advertise their services once again. Facebook implemented the initial ban on all cryptocurrency advertising in January 2018 as Bitcoin mania hit it’s peak.

Companies can now submit an application to Facebook to be pre-approved for advertising on the social media platform. Notably, ICOs are still banned from advertising as Facebook looks to open up advertising to companies providing services in the blockchain space.

And that’s this week in Crypto! Join me next week for another quick update on market happenings and noise-free news.


Crypto Digest: EOS Constitutional Crisis Explained, Is TaTaTu the Netflix Killer? was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.