The transition to the Proof of Stake requires a vote. When voting, users can choose validators or block manufacturers. Now, however, Weiss Ratings says that because of this, there are "serious problems with centralization." Meanwhile, EOS fell by 20.2 percent compared to last week’s close.
EOS Price Analysis
The decision to adopt an algorithm of consensus, which would be flexible and meet the objectives of the First Block, did not give rest. Behind each blockchain project that seeks to launch its main network is the desire to fulfill the conditions of the blockchain trilemma.
These conditions are pleasing to the eye, but fulfilling them is a difficult task, an almost impossible feat. Therefore, creators must make a decision. Given their common goals, Block One went for a combination of scalability and security versus decentralization.
With an architecture consisting of 21 select block manufacturers assigned to be responsible for validation, control, and security, the network is vulnerable. There is a possibility that malicious elements may be targeted at these manufacturers of blocks, causing damage to the system.
As a result, the US rating company Weiss ratings lowers the EOS rating and explodes the digital asset, saying that he has “serious problems with centralization”. Subsequently, since this level of “centralization” is serious, it lowers its technological rating. to a-.
However, this does not mean that bears control the situation. From the graph it is clear that the EOS is retreating after a steady rally. Currently, the first support level is on the 4-month trend line.
Depending on the level of participation, which will cause a reaction or reset at the level of about $ 5.5, the traders will either leave their long positions or start increasing.
Please note that any drop below $ 5.5 may lead to the completion of a re-test of EOS at $ 4.5. Nevertheless, the rebound against the backdrop of high trading volumes is a precursor of $ 9.5 and $ 12 for aggressive traders.