Report: 3 Major Blockchains Are Not Used for Their Intended Purposes as Most of the Transactions are Valueless
Valueless Transaction Blockchains
The research paper of three researchers unveils that most of the transactions on the three prominent blockchains are without value. These blockchains include XRP, EOS, and Tezos. In fact, these are just used for maintaining the consensus, or for spam purposes, or to airdrop worthless tokens.
Ledgers: XRP, EOS, and Tezos
In doing valueless transactions, XRP tops the list that is followed by EOS and then Tezos. The research paper says, ”Our analysis reveals that only a small fraction of the transactions are used for value transfer purposes. In particular, 95% of the transactions on EOS were triggered by the airdrop of a currently valueless token; on Tezos, 82% of throughput was used for maintaining consensus; and only 2% of transactions on the XRP ledger lead to value transfers.” The researchers who this extensive research include Daniel Perez (student of PhD at Imperial College London), Jiahua Xu (researcher University College London), and Benjamin Livshits (Brave chief scientist).
Ripple Volume and Value are Manipulable
The crypto community believes that Ripple controls the XRP’s price as well as the trading volume of XRP. This claim is further confirmed by the research paper as it states,” We learned that both transaction volume and token value on the XRP ledger are highly manipulable.”
Tezos is also a major blockchain hosting one of the largest cryptocurrencies by trade volume. Those, who hold the Tezos coins, control the major decisions on Tezos’s ledger as underlying consensus is proof-of-stake. The valueless transactions are performing very import function because it is used to maintain or validate the consensus.
The research document reads:
“For Tezos, since transactions per block are largely outnumbered by mandatory endorsements, most of the throughput, 82%, is occupied for maintaining consensus.”
The paper also proposes that these blockchains can be used for valuable transactions, but their current usage is not satisfactory, thus promoting illegal activities in the blockchain world. “The bottom line is: the three blockchains studied in this paper demonstrate capacity to carry out high throughput; however, the massive potential of those blockchains has thus far not been fully realized for their intended purposes,” the paper concludes.
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