Exchange houses and Steemit used funds from their users to control network Steem

A group of exchange houses and Steemit took control of the blockchain Steem then use the funds of their users to replace 20 of the 21 delegates or witnesses in their system of governance. The community of Steem and figures of the criptoecosistema denounced the situation and said the criptobolsas voted using the cryptocurrencies that the operators kept on these platforms.”I regret to inform you that the blockchain of Steemit has been centralized. As you can see, the top of the (twenty) witnesses have been replaced with large amounts of SteemPower to be controlled by Steemit Incorporated and exchange houses centralized,” said Luke Stokes, one of the witnesses removed from the network, and who mentioned that behind the move is Binance, Huobi and Poloniex.The network Steem in conducted by 21 witnesses, or operators, that is to say, a version of the miners of bitcoin or the producers of blocks of the EOS. It is a system of governance under the test protocol of participation delegate (DPoS), in which a particular group of people takes decisions in order to minimize the possibility that a third party takes a significant amount of cryptocurrencies. Bitshares was the first network to DPoS, followed by Steem and then EOS. The programmer Daniel Larimer was a co-founder of SteemLa situation occurs a week after the bifurcation of Steem trying to limit the power of Justin Sun, the founder of the project, TRON, following the acquisition of Steemit, a blog platform, decentralized, built on the aforementioned blockchain.One of the first to report the situation was Vitalik Buterin, founder of Ethereum, who said that what happened seemed “an attack of bribery of de facto”.

Position of Binance

Another who spoke was the CEO of Binance, Changpeng Zhao known in the criptoecosistema as CZ, who responded to one of the messages Buterin saying: “I knew this update/hardfork in advance, and I approved. Projects do this all the time, and we are generally in a position of support. Just sent a message to @justinsuntron, there is still no response. I guess I will respond publicly soon.”Using a tone of justification about what happened, CZ suggested that another possible variation of this would be to implement a function of the vote on the platform, which would move the voting decentralized to a centralized platform. “Or we do not admit hardforks, which often are regular updates in the space blockchain,” he said.After these tweets, CZ posted a third message, in which he showed a more conciliatory position. Mentioned that after reading the comments of the users would be considering eliminating the vote, as the operation requires that people in different geographical locations to coordinate.Another challenge was posted from the Twitter account @BlockDXExchange where they criticized the fact that CZ has assumed normally that Binance to use the funds of their users to gain control of the network.One aspect that draws attention is whether these users can have access to their funds after the decision of these exchange houses. At the time of publishing this article the price of STEEM was 0,177147 with a negative variation of up to 0,03% when you compare its price with that of this Sunday, according to CoinMarketCap.

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