Ripple Reacts to Research Revealing Empty XRP Transactions

News / 11.05.2020

A research paper was published on the website of Cornell University claiming that just 2 percent of all XRP transactions resulted in value transfers. The researchers noted that the majority of transactions on the XRP Ledger had zero value (that is, empty), which is a cryptocurrency version of spam.

A software engineer and PhD student at Imperial College London was in charge of the published research which revealed the predominant spam on EOS and Tezos network traffic.

Ripple responded to the research paper but did not deny it. According to the chief technology officer David Schwartz, the report seems true, and such activity is only a proof of the ledger’s speed, affordability and capacity.

Schwartz responded to the empty XRP activity in a tweet, noting that transactions are quite speedy and cheap. He thinks that the majority of the transactions seem to be bots striving for positions in the order books and quite a few of them appear malicious.

“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!”

Schwartz noted that the approaches to get rid of the spammers might be costly for those who trade XRP everyday.

“Some of the transaction spam can be addressed by fixing “quirks” those transactions exploit. But most of it is just that the ledger is so cheap to use. Raising the price will discourage the spam but also discourage valuable transactions.

A decentralized, public system that was designed from the ground up to make censorship as difficult as possible will always have this problem unless transactions are expensive. What are you willing to give up to resolve a problem that is not doing all that much harm?”

Source: Cryptopress.

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