EOS, the blockchain network that recently went live wants to compete with Etherum, but it’s been a rough first week for the company. When the cryptocurrency went live last week and the first few days were fine until it ran into a brick wall over the past few days. On Friday, we reported that the entire market was in a freefall with EOS losing 10 percent of its overall value overnight.
There are good and bad days in the market, but the company ran into a much bigger issue when an Emergency Measure of Protection Order” order block producers to freeze all transactions for 27 different wallet addresses, according to Coindesk. Their accounts have been frozen for several hours without an explanation.
There has been nothing but speculation regarding the reason why EOS’ blockchain was frozen. This statement is all the information we have from the EOS Core Arbitration Forum: “It is hereby ordered the EOS Block Producers refuse to process transactions for the following accounts and keys indefinitely.”
Why is There An “Emergency Measure of Protection Order” on EOS?
As of this writing, the ECAF hasn’t explained the real reason for the order and said the following: “The logic and reasoning for this Order will be posted at a later date. Obviously, the move is extremely controversial without any context of the situation. The EOS community has been turned upside down by the order with some critical of it and others defending the move.
For detractors of the order, the move is a big demonstration that EOS isn’t effectively a decentralized network at all. Others are critical of law enforcement being able to seize the blockchain based on possible suspicions of criminal activity. Defenders of the order have pointed that the frozen addresses could be involved in phishing scans who targeted investors to capitalize on the chaos of EOS’ blockchain going live for the first week. At the moment, there are a lot of questions with no answers.
What Happens Next?
EOS’ unique approach to governance is new territory for a new major blockchain and the project has made a strong stand for decentralization since its inception. More specifically, the EOS community has become quite passionate about the issue at hand. However, the company created the ECAF to fix problems and resolve disputes.
There’s obviously a logical reason why the EOS’ blockchain was ordered to shut down at least 27 accounts, but it’s all going to be speculation and rumors until the powers that be at EOS and ECAF let the public know what’s happening.