A research document found that the majority of transactions on three major blockchain platforms are worthless. In many cases, they are widely used for spamming or to drop worthless tokens.
The document’s summary states: “Our analysis reveals that only a small fraction of the transactions are used for value transfer purposes. In particular, 95% of transactions on EOS were triggered by the release of a currently worthless token; on Tezos, 82% of the flow was used to maintain consensus; and only 2% of transactions on the XRP ledger result in value transfers. “
The authors of the article – Daniel Perez, doctoral student at Imperial College London, Jiahua Xu, researcher at University College London, and Benjamin Livshits, chief scientist at Brave – tracked different types of chain transactions of blocks above, noting their purpose and value. The authors conclude that while the above chains handle a lot of throughput, the majority of them may be essentially useless.
“With EOS and XRP, the majority of transactions have characteristics resembling DoS attacks,” the newspaper reads. DoS, or denial of service attacks, are cyber attacks where a large number of computers are used to test a website or other service for taking it offline.
Regarding XRP, the document states that “the throughput of the XRP registry during our observation period appeared to be fraught with zero-value transactions,” adding: “We have learned that the volume of transactions and the value of tokens on the XRP register are very easy to handle. “
As Decipher reported, XRP transactions are also used to deceive exchanges. XRP is unique in that it can display transactions that have been partially paid, unlike other blockchains where you have a transaction or not. This means there are two different “amount received” settings and if the exchange uses the wrong one, they could credit a merchant’s account with a lot more XRP than they sent to the exchange. .
The Tezos (XTZ) transactions are closely analyzed in the document, which concludes that the blockchain voting process is the source of most of its transaction volume. The document states:
“For Tezos, since block transactions are largely exceeded by mandatory endorsements, most of the throughput, 82%, is occupied to maintain consensus.”
Tezos is a proof of participation blockchain platform, where the people who own the Tezos coin can help keep the network running and vote on how it should be changed over time. So while transactions may not have value, they can still serve a useful function.
It should be noted that the document was written by Benjamin Livshits, chief scientist at Brave Software. The Brave Browser’s native cryptocurrency, Basic Attention Token (BAT), is based on Ethereum, which competes with other cryptocurrencies, especially EOS.
The authors conclude that the above blockchains have the ability and the ability to handle high throughput levels. But, they say, their current use does not match their potential.
“The result is as follows: the three block chains studied in this article demonstrate their ability to achieve high throughput; however, the massive potential of these blockchains has so far not been fully realized for the intended purpose, ”concludes the article.
What’s the point of being able to execute millions of transactions per second, if the demand just doesn’t exist?
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