EOS News – Can EOS blockchain operate efficiently in this downturn?

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EOS, as well as many other cryptocurrencies, face a similar problem. Most of the people who are validating the blockchain are not able to generate any profits. The problem is that the lesser-known cryptocurrencies already had less number of miners as well as proper producers. Owing to this very reason, in this downturn they are getting affected even more. One such cryptocurrency is EOS.

Can EOS blockchain operate efficiently in this downturn?

According to rough estimates, EOS block producers will break-even when the cryptocurrency reaches $ 4. Currently, it is trading around $ 1.94. Even though it has been rising gradually for the last few days but still, it is quite a bit away from $ 4. This clearly indicates that the block producers are actually not making any money. At the same point in time, if the block producers cease operations, the blockchain will not operate efficiently. This will mean that the transactions will lag up as well. Owing to this very reason the EOS blockchain is actually at risk of being inefficient due to the low number of block producers.

EOS has redundant block producers. However, even those block producers will not be able to generate any profits after the validation of blocks. This is one of the main reasons why the entire blockchain is in danger. The problem is if the downtrend continues, the block producers will not be able to sustain the losses. They will actually be forced to cease operations.

The problem is that even if the cryptocurrency stabilizes, no one can predict what will be the exact time period for recovery of EOS. EOS is not the mainstream cryptocurrencies either. It has lost the attention of many investors due to the falling market cap. Moreover, time and again there are controversies surrounding EOS. Owing to this very reason, there are chances that it might stagnate at the lower levels for a longer period of time. If that indeed happens, the block producers will not be able to sustain producing blocks on a consistent basis.

The problem is that if any of the cryptocurrency does not have enough miners or block producers to validate the blockchain, it will be very difficult for it to survive in such a cut-throat competition. Many cryptocurrencies and Altcoins are trying to attract the developers to their blockchain. That is why; developers will be Swift to move from the ones which have problems.

About Manish 352 Articles
I am an avid crypto lover and a electronics & telecommunications engineer by qualification. I follow the cryptocurrency & blockchain industry closely to focus on the latest news & developments.

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