95% of Blockchain Transactions on XRP, EOS and Tezos Don’t Transfer Any Value


May 13, 2020 10:04 am

Most Transactions on XRP, EOS and Tezos Don't Transfer Any Value
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According to a new research study, only 2% of transactions on the XRP ledger and 18% of transactions on Tezos (XTZ) lead to value transfers and most of the transactions on EOS, Tezos and XRP do not transfer any value.

They noticed that the 95% transactions on EOS during Oct 1, 2019, to Dec 31, 2019, were related to the airdrop of a currently worthless token.

Daniel Perez from Imperial College London, and Jiahua Xu and Benjamin Livshits of UCL Blockchain authored “We Know What They’ve Been Put Through Revisiting High-scalability Blockchain Transactions”, which claims to be the “first large scale detailed analysis of three of the most widely used high throughput blockchains.”

50% XRP Transactions Conducted By 18 Accounts

The researchers analysed on-chain transactions and marked each category against the total. They observed the blockchains can manage lots of transactions, but they weren’t being used for particularly useful things at present.

“Our analysis reveals that only a small fraction of the transactions are used for value transfer purposes… and only 2% of transactions on the XRP ledger lead to value transfers.”

David Schwartz, Ripple’s chief technology officer stated, “Spam was simply proof of the ledger’s speed, affordability and capacity. Transactions are so fast and cheap and the ledger has so much capacity, little incentive not to submit near zero-value transactions. The majority of transactions were harmless bots fighting for position in order books.”

Raising the price of transactions would solve the issue of spam at the cost of discouraging worthwhile transactions.

The team found, 150 million XRP transactions conducted by a total of 90,000 accounts in 2019. Though one-third of accounts made just one transaction while 18 accounts were liable for the rest half of the transactions which are linked to Huobi, they have all transacted using CNY and used the same designation tag. These 18 accounts are either Descendents of an account from Huobi exchange, or frequently transact with Descendents from Huobi. 

EIDOS Token Airdrop

During the period (Oct 1, 2019, to Dec 31, 2019), 95% of transactions on EOS were associated with the EIDOS token airdrop⁠, a token that’s effectively worthless. Nevertheless:

“Before the arrival of the EIDOS token, approximately 50% of these are transactions to betting games. The rest was split between token transfers and various forms of entertainment, such as games not involving betting as well as payments to pornography web sites.”

Endorsing Blocks

82% transactions on Tezos, were included in endorsing blocks. “This is because of the fact that every block requires at least 32 endorsements to be confirmed and the number of transactions on the network is still low, and the rest of the throughput is essentially used by transactions to transfer assets between accounts.”

The conclusion of researchers is that although these three blockchains have the capacity to carry out high throughput, their capability “has so far not been fully recognised for their intended purposes,” Bitcoin SV recorded 1.2 Million transactions today, in a single block, Critics might claim, that it is following a similar pathway.

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