Xiao Lei: EOS Is Not The Real Blockchain 3.0
Xiao Lei, a famous financial analyst, said that EOS was not the real blockchain 3.0. Instead, it was just another “consensus” project that meets the demand of speculation. The power of consensus is much weaker than the power of profits. He also said the DAO (decentralized autonomous organization) might be a false innovation. Below are some excerpts from his article.
Xiao believes that blockchain is going to revolutionize the internet instead of the real world. He believes that blockchain is to change the internet instead of the physical world. The virtual world of internet has already reshaped many rules in the real world and running on its own rules. However, blockchain could bring a more transparent and autonomous rules that everyone has to follow.
“Under such context, the popularity of blockchain is quite intriguing. It actually shows that our current Internet has a big problem.”
The conflict between blockchain and existing internet is actually a good thing.
Is EOS capable of revolutionizing internet with its consensus algorithm and mechanism design?
Yes, it is possible to a certain extent. The governance of EOS is decentralized from one center to multiple center. The emergence of multi-center is completely transparent. It is a bottom-up choice and it is also trying to create a platform-level blockchain application that raises the transaction speed to another level.
“However, it must be remembered that the blockchain is not, to some extent, to improve the efficiency of the Internet.”
EOS tries to balance the relationship between efficiency and decentralization. Under the existing technological logic, to build a more powerful application market means to sacrifice certain decentralization. The purpose of the blockchain is to enable Internet to host more features instead of becoming faster.
What is the true innovation of EOS?
Xiao Lei believes that the real innovation of EOS comes from the consensus mechanism. Although it is initiated and designed by a centralized developer, it also represents a method that can transform the behavioral awareness of a group of people. The other innovation is that the blockchain basic gameplay has a certain degree of credibility and self-restraint for the participants. At least everyone believes that the data is open and transparent and cannot be tampered with.
Is DAO based on blockchain consensus really in line with the logic of social development?
The concept of DAO(decentralized autonomous organization) is being questioned. DAO doesn’t represent a better relationship and lack balancing mechanism. The rule of “fittest survive” also applies to DAO. The word “organization” actually represents a mechanism of acknowledgement instead of “consensus mechanism”. Under the current EOS model, most users are left with two options only “in or out” and there are no third option available.
If DAO is the future then the trend may lead to more utopias, or even a mob. This is by no means an alarmist. Those who think that they are wise will bow in front of the theory that they are convinced, which will then be converted into faith. This is how extremist organizations are born.
But often the greatest rule is fault-tolerant and robust. For example, the white paper of Bitcoin has only 7,000 words, and the Taoist Bible and the American Constitution are only 6,000 words long.
“Therefore, in my opinion, if a truly great rule and consensus cannot be explained clearly through a few thousand words, then there is a big problem with it and no truly universal ecosystem can be created.”
The conclusion is actually very simple. EOS provides a rare opportunity for speculators to enter into a “consensus”. It is the result of the constant pursuit of market makers, but it is still far away from blockchain 3.0.