Experts from Imperial College London, University College London, and the Brave company carried out a detailed study of the block chain XRP, EOS and Tezos. The results of the analysis raised many questions. As it turned out, most of the transactions in the three cryptocurrency has no real value. Transfers in the block chain are used mainly for spam or giveaway of useless coins.
The problem is really important. All cryptocurrencies are created for the transmission of values and without any obstacles in the form of state borders, prohibitions on the part of banks or exorbitant commissions. Actually, this coin succeed.
However, the blockchain can also be used for other purposes — for example, to exchange messages. Like we saw after hacking the South Korean cryptocurrency Upbit exchange in November 2019. Since the wallet address of the hacker was known, users took to send him an empty transaction with text content. That is, they did not send the money, and only pay for the operation. It’s funny, but in many translations of the hacker solicited money. Here is an illustration of such a request.
The real problem of cryptocurrencies
Back to the study. Analysts Daniel Perez, Csaua Xu and Benjamin Livshits came to a conclusion after analysis. Here is their quote.
Our analysis shows that only a small part of the transactions [of cryptocurrency] has a value. In particular, 95 percent of the EOS transaction was initiated with the aim of free distribution of different tokens that have no market value. In Tezos 82 percent of the bandwidth is used to maintain the mechanism of consensus. Finally, 98 percent of all transfers in XRP have no value.
We will remind, a free distribution of coins is also called airdrop. Usually the latter is used by creators of a new cryptocurrency projects to attract attention to the child. You probably were periodically found at their online wallets small percentage of any coins that you are buying.
Note that the distributions of coins you can really make, but this is harder. For example, a student from Bangladesh was able to obtain on airdrop more than 25 thousand dollars a year. To do this, it actively advertised the project on social networks and engaged in their promotion.
Transactions in EOS and XRP are also used for spam and activity, the characteristics of which resemble the principle of a DoS attack. That is essentially the network load of pointless operations, the researchers said. Here is their quote.
The throughput of the blockchain, XRP during the observation period was filled with transaction zero cost. We also learned that the volume of transfers and their costs are subject to frequent manipulation.
See also: the Technical Director of Ripple called XRP fully decentralized cryptocurrency.
In Tezos slightly different story in this ecosystem almost 82 percent of transactions used for voting on the blockchain. The voting part of the algorithm Proof-of-Stake.
The point is that all three of the blockchain is studied in this article demonstrate a high throughput. However, the enormous potential of these ecosystems is still not fully realized for their intended purposes.
That is referred to in the study of cryptocurrencies can handle a lot of transactions. Alas, the required number of "useful" operations with the real value is not enough, and most of them took the translation without much meaning.
We believe that the situation in the studied blockchains was quite sad. Especially considering the fact that they have great potential, but it consume questionable things. I want to believe in the fix for this situation and over time. I hope the indicator transaction is to gain weight as you grow your user base cryptocurrency.
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