EIDOS Token Airdrop Causes Congestion Problem in EOS Blockchain Network
Nicholas Otieno Nov 12, 2019 07:15
Blockchain congestion is a serious issue in the cryptocurrency industry. Several networks suffer from this problem regularly.
Recently, blockchain technology has received much attention because of the increase of cryptocurrencies like bitcoin and its potential to act as a catalyst for financial and economic change.
Though tokenomics have assisted in propelling blockchain into the mainstream, the abilities of this technology extend far beyond cryptocurrency.
Blockchain was designed to be a decentralized network. But that has come with a number of problems. One big concern is that transaction times and costs have soared as the network becomes more congested.
The latest report indicates that the EIDOS token airdrop causes congestion in the EOS blockchain network. Coinbase cryptocurrency exchange recently announced that transactions conducted on EOS blockchain experience delays because of network congestion brought by the EIDOS token airdrop.
At the time when Coinbase disclosed the report, this concern has been addressed through an increase in the processing capacity of the CPU; therefore, securing a sufficient amount of CPU time available on the network to handle transactions.
Perhaps, let’s understand some of the major issues noticed during this congestion mode.
Longer processing of transactions
The problem resulted in an increase in the cost of CPU time by almost 100,000% just within 4 hours. The price of the CPU time hit a high of 7.69 EOS/millisecond.
The degraded performance of EOS has been persistent for several days. For a week, Coinbase noticed that it has been taking longer to process transactions. The EISOS token airdrop has led to a major increase in activities in the EOS network.
What caused the EOS congestion?
According to the report, a token identified as EIDOS was launched on the EOS network on 31st October 2019, and its airdrop involves a process of initiating transactions on the network using a smart contract.
From the start of this month, cryptocurrency exchanges and trading platforms have been facilitating trading on EIDOS/USDT pairs to allow crypto users to exchange their tokens for stablecoin.
Users who intend to sell the airdropped tokens by increasing the number of transfers processed by blockchain, they have acquired the network’s CPU time on the lease. This causes a congestion mode on the EOS blockchain network and delays the number of transactions that users can initiate depending on their pro-rate amount of total staked CPU resources on the network.
When is the EOS Network expected to normalize?
Currently, average users who hold a relatively low amount of staked CPU resources, are unable to initiate transactions. However, the situation would not remain for a long time as Coinbase assures that the problem is only temporary.
The exchange expects the EOS blockchain network to come back to its normal status as soon as it is no longer profitable to collect tokens or the CPU leases expire at the end of 30 days, without any renewal of lease by the lenders.
At the end of October, EOS took the top position in China’s state-backed cryptocurrency ratings, whereas the most popular cryptocurrency Bitcoin was ranked 11th.
Takeaway
Network congestion is a serious matter in EOS Blockchain Network. It increases the time of processing transactions and limits the growth of cryptocurrencies. But the good news is that blockchain experts have a number of methods they use in practice to resolve this problem.
Image via Shutterstock
Image source: Shutterstock
