NEO's Consensus Glitch: What Really Happens if Nodes Crash?
NEO faced criticism on its network consensus mechanism, market price slumped following negative publicity.
NEO's market price slumps toward $100 following a day of bad publicity regarding the consensus mechanism of the network. After the Twitter thread went viral, and was found to contain inconsistencies, the NEO founder Da Hongfei stood to explain the issue.
The original thread by Eric Wall (@ercwl), however, continued with further arguments why the NEO project has a fault that is unacceptable after four years in development.
Put in short, the NEO network can continue running while one or two nodes are experiencing problems. Additionally, the NEO project will aim at decentralization in the future by democratizing the running of nodes, which now are limited to the developer team.
But for now, the spreading of nodes would remain more or less controlled, explained Da Hongfei in a blog:
"NEO Council can vote in more Consensus Nodes or just hand over all the Consensus Nodes right away. However, we don't think it's a responsible action in any sense. We don't want NEO's community to be disrupted by crypto-politicians representing interest groups like happened elsewhere."
The news comes at a crossroads moment for NEO, as projects are evaluating the network for ICOs. While some are coming on board, others are abandoning NEO:
Yet despite the rectification from NEO, the project still has to prove the potential of its network, and may in fact hold problems.
Although $NEO experiences occasional problems with consensus, this is a simple bug that can be patched and this is NOT a fundamental problem with dBFT algorithm.— City of Zion (@coz_official) March 5, 2018
Erik Zhang, alongside CoZ and @Red4Sec are constantly working to resolve any issues that arise. https://t.co/K2UBNjKc6d
NEO Price Slumps
In the past week, the NEO market price could not continue upward, and became the biggest loser in the top 10 of CoinMarketCap, despite booming in past weeks. NEO sank more than 22% in the past week to $108.32. Trading volumes remain usual for the past two months, barring the pumps at the end of last year.
Some believe the current criticism against NEO is a concerted effort to bring down prices, and in fact the NEO digital asset has a long way to go in 2018.
The GAS digital asset has also sank by more than 22% in a week, to around $31.30. It is possible that NEO prices are also correcting following the Ontology hype, and retracing some of the gains after the airdrop snapshot was completed.