EOS Block Producers Asked To Freeze 27 Accounts Over Decentralization Controversy

The EOS blockchain project which was expected to give Ethereum a tough competition, is now facing multiple hiccups just within a week of its main net going live. Just last week, the block producers on the EOS network responsible to validate transaction and verify blocks had blocked 7 accounts alleging those to be belonging to thieves who had stolen funds by fraud and phishing attempts.

Following this, there was yet another "Emergency Measure of Protection Order" dated June 22 from the EOS Core Arbitration Forum (ECAF) directing the EOS block producers to stop processing transactions from 27 different wallet addresses.

Sam Sapoznick who acted as an interim emergency arbitrator signed the order which reads: "It is hereby ordered that the EOS Block Producers refuse to process transactions for the following accounts and keys indefinitely. (Until further official notice and instruction from the ECAF.)”

The surprising thing about this order is that the ECAF has not issued any particular reason for this order while only stating that the “logic and reasoning for this Order will be posted at a later date.”

Some people have supported and backed this decision claiming that such steps are necessary and important to weed out bad players from the EOS blockchain. While on the other hand, a few members from the crypto industry have criticized this move saying that EOS functions as a centralized institution which stands against the decentralized behavior of the blockchain network.

This decision taken by the block producers violates the EOS constitution which states that such decisions of dispute shall be handled by an arbitration body. As per Article IX from the EOS constitution: “All disputes arising out of or in connection with this Constitution shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce by one or more arbitrators appointed in accordance with the said Rules.”

Although EOS has been pitched as a revolutionary project in the decentralized cryptocurrency, a lot of fingers have been raised towards its centralized approach of protocol governance. The EOS blockchain network has been implemented through a consensus mechanism called the delegated proof-of-stake wherein the entire responsibility of its protocol is given to 21 “block producers”. These block producers have the entire authority to censor, prohibit and freeze accounts.

The EACF as an intermediate body to solve dispute with powers to ask the block producers to step down from their decisions.