Can EOS save its blockchain castle from the mysterious attack?

in writing •  10 months ago 

Image Source

The day was 31st October, 2019. A token named EIDOS was released on the EOS network on that date. EIDOS does not have any use case and its website does not have any details about its team. It looks like an anonymous virus made to prove a point to the EOS community. Quite mysterious!

EIDOS website says, “If you send any amount of EOS to this address, it will instantly send it back to you, and at the same time it will also send 0.01% of all EIDOS tokens it holds. Starting November 1, 2019, 8am GMT, it will also mint 25 new EIDOS tokens every second. 5 EIDOS will be sent to the team account, 20 EIDOS it will hold for the airdrop. This will go on for about 15 months, by then 1 billion EIDOS will exist and 800M of it are given to the community for free.” An EOS holder can send minimum 0.0001 EOS to the EIDOS contract to get the airdrop.
Image Source – Tweet of the twitter account behind mysterious EIDOS project

Some exchanges started to list the token within a few days and people realized that they can repeatedly send EOS to EIDOS contract to generate more airdropped EIDOS and trade them immediately. Some wallets like TokenPocket arranged an ‘EIDOS miner’ in their DAPP store to automate mining of EIDOS. The EOS network got flooded with transactions. On 9th November 2019, Coinbase reported 95% of all EOS transfers are related to EIDOS contract. The EOS network was not built to handle such flow. The sudden increase in network activity pushed the EOS network into congestion mode. Normal users with low CPU resource became unable to do transactions. CPU price also rose dramatically as demand increased. All DAPPs running on EOS network got stalled.

Image Source – Various tweets regarding CPU congestion

EIDOS is basically a ‘waste-token’. It is currently motivating the users to waste CPU resource only. As it is a listed token, trading activity is providing the fuel to the demand of the token. The incident exposes extreme vulnerability of EOS network. EOS community never expected this ‘guerrilla attack’. No answers are found to tackle this resource crisis. Many decentralized exchanges started to provide ‘free CPU’ to their users to keep the trading activity alive. Some wallets like TokenPocket, Wombat devised ways to provide CPU with nominal charge.

Image Source – Various (Newdex decentralized exchange offering 10 CPU free transactions per day; TokenPocket tweet to announce ‘Forget Mode’ of CPU; TocketPocket EIDOS miner DAPP)

How long will the problem continue to exist? Difficult to say! EOS network behavior is not fundamentally wrong. Simply it was not prepared for this event. 23 days have passed since the attack started and the community is under shock. There is no fix till now. Good news is that the EOS network is still doing its functions under heavy load. The sudden attack caused by ‘EIDOS pseudo mining’ or ‘EIDOS airdrop’ may give EOS community good food for thought about the way ahead. Some community members have come up with an ‘immunity token’ concept. The concept says that to fight this bubble characteristic of ‘waste token’, one adversarial bubble should be created which will serve as the immunity of EOS blockchain. The ‘immunity token’ will reward the users for not wasting CPU and thus balance the CPU demand. Whatever happens! EOS needs to save its blockchain castle from the threat now. High time for the block producers to wake up from slumber to save the blockchain and its popularity.

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  ·  10 months ago (edited)

That is crazy. Wonder what the solution for this is going to be? Very interesting and thanks for sharing @paragism. So many mysteries in the blochchain world.

edit: spelled blockchain wrong and it made me think of a track...

The incident exposes a vulnerability of EOS blockchain.Also it shows that chinese BPs of EOS are sleeping. They are clueless about solution.

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Seems ridiculous that the token has been listed on so many exchanges when it’s an obvious ponzi, many other tokens have much more function including the sister sites to STEEM. It’s not easy to get listed on large exchanges thus there is no way this isn’t being perpetuated by someone throwing money at the problem.... sounds like a attempt to steal the value of EOS and this is ultimately my fear for SMT on STEEM

Posted using Partiko iOS

Yes many exchanges listed the token immediately and gave value to the 'waste token'.

Its a @d00k13 token you can say it 😅

Some of the exchanges have requirements of trading volume so I really wonder how it was listed so quickly on so many?

Yes seems fishy

Seems like a legit concern for any token supporting network.

Seems like a legit
Concern for any token
Supporting network.

                 - jbgarrison72

I'm a bot. I detect haiku.

This post has been resteemed by Newbie Resteem. Agreed throughout. I hold over 3,000 EOS tokens and watching this gong show has been painful to say the least. I remember after the ICO that there was a massive Eth sell off that was blamed on the EOS ICO holdings being power sold and some were painting it as an attack on their competitor. I don't know if that's the case. However, these types of occurrences do serve a purpose of sorts as it highlights issues that could be huge problems if the market was bullish. These types of bumps can cause a heck of a downward spiral to take hold when buying is in full swing. Great post. Keep up the awesome work and looking forward to your future content.

Many thanks for your support

Great info! Thank you for sharing! I think all this will eventually make eos stronger

What a pickle EOS is in.

As a follower of @followforupvotes this post has been randomly selected and upvoted! Enjoy your upvote and have a great day!

Many thanks

Well, have reblogged to thousand followers.. Many thanks to approve @puncakbukit as your witness.

Many thanks

Nice work! Thanks for sharing!
Might be some sort of a revenge?!

Thanks for appreciation

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You are most welcome!

and we were all wondering why @ned had been so quiet.......

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Nice to know

Hmmmm... I never trusted this EOS thing. I personally feel they collected way too money for what they propose to do. As such, I refused to enter the EOS bandwagon.

Now I see that the network doesn't deliver half of its promises... and I'm starting to think my decision to stay away was a good one.

True but similar thing can happen with any POS blockchain technically.