A research paper found that most transactions on three major blockchain platforms have no value.
In many cases, they are used extensively for spam or to airdrop useless tokens.
The summary of the article reads: “Our analysis reveals that only a small proportion of transactions are used for the purpose of value transfer. In particular, 95% of EOS transactions were triggered by the airdrop of a currently useless token; in Tezos, 82% of bandwidth is used to maintain consensus; and only 2% of transactions in the XRP registry result in value transfers. “
The authors of the report – Daniel Perez, a doctoral student at Imperial College London, Jiahua Sue, a researcher at University College London, and Benjamin Livshits, Brave’s chief scientist, traced different types of transactions on the upper blockchain networks, noting their purpose and value. The authors conclude that while the above circuits process a lot of performance, most of them may be essentially useless.
“With EOS and XRP, most transactions exhibit DoS-like features,” the document said. DoS, or denial-of-service attacks, are cyberattacks in which a large number of computers are used to put voltage on a website or other service to take it offline.
As regards XRP, the document states that“The bandwidth in the XRP registry during our observation period appears to be filled with zero-value transactions”, adding:
“We learned that both the volume of transactions and the value of the token in the XRP registry are very manipulable.”
As reported, XRP transactions are also used for stock fraud. XRP is unique in that it can display transactions that are partially paid, unlike other blockchains where you either have a transaction or do not. This means that there are two different parameters ” received amount” and if the exchange uses the wrong one, they can credit a trader’s account with much more XRP than they are sent to the exchange.
Tezos’ transactions (XTZ) have been carefully analyzed in the document, which concludes that the blockchain voting process is the source of most of its transactions. The document states:
“For Tezos, as block transactions are largely superior to mandatory approvals, most of the bandwidth, 82%, is occupied to maintain consensus.”
Tezos is a Proof of Work (PoS) blockchain platform where people who hold a Tezos coin can help maintain the network and vote on how it should be changed over time. So, although transactions have no value, they can still perform a useful function.
It is worth noting that the report was contributed by Benjamin Livshits – Chief Scientist at Brave Software. The native cryptocurrency of the bold browser, Basic Attention Token (BAT), is built on Ethereum – which competes with other cryptocurrencies, in particular EOS.
The authors conclude that the above blockchain networks have the capacity and ability to handle high levels of bandwidth. But their current use does not meet their potential.
“Ultimately: the three blockchains studied in this paper demonstrate the ability to achieve high bandwidth; However, the huge potential of these blockchains has not yet been fully realized as intended, “the publication concludes.
What’s the point of being able to run millions of transactions per second if the search just isn’t there?