- A new research report states that allegedly only a fraction of all transactions in the EOS, Tezos and Ripple network are used for value transfers.
- Ripple’s CTO David Schwartz explains on Twitter that these results are not a big surprise due to the technical nature of the ledger.
A new research report states that the majority of all transactions of three large blockchain projects are empty and therefore do not transfer any value. This statement went viral on Twitter and caused heated discussions in the community. The situation swung high, activating prominent people like Ripple’s CTO David Schwarz.
EOS, Tezos and Ripple transactions allegedly empty or used for spam
In a new report, authors Daniel Perez of Imperial College London, researcher Jiahua Xu of University College London and chief scientist Benjamin Livshits have examined different types of transactions on large blockchains, noting the purpose and value. Although all blockchains have a high throughput, the majority of the processed transactions could be useless.
The report concluded that only a small portion of the examined transactions are actually used for value transfers by the blockchain projects Ripple, EOS and Tezos. Allegedly 95% of all investigated transactions at EOS were used for worthless aidrops and at Tezos 82% of the transaction throughput is said to be responsible for maintaining the consensus. At Ripple, only 2% of all transactions were allegedly used for value transfers.
A member of the Ripple community contacted Wietse Wind (developer of Ripple) and CTO David Schwarz directly to get a clarifying answer to these serious allegations. The dropped tweet spread like wildfire.
The investigation further elaborates on XRP transactions:
The throughput on the XRP ledger during our observation period appeared to be fraught with zero-value transactions. We learned that both transaction volume and token value on the XRP ledger are highly manipulable.
Ripple CTO David Schwarz describes on Twitter that he agrees with the report and in fact a large part of the transactions on the XRP ledger are marked as “empty”. This is due to the high speed, capacity and the submission of a value close to “zero”. According to Schwarz, the result of the study is not a big surprise:
I believe it. Transactions are so fast and cheap and the ledger has so much capacity, little incentive not to submit near zero value txns. Not long ago, 50% off all public decentralized ledger txns were on XRPL!
The report concludes that the projects examined offer a high transaction throughput, but the full potential is far from being realized:
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.