Over 75% of dApps transactions driven by bots - research
|- The recent research revealed a high level of bots activity on blockchains.
- This trend can be potentially dangerous for decentralized ecosystems.
Transactions worth of $6 million was driven by bots activity in the first quarter of 2019, the recent report published by CBInsights revealed.
The analysts made an astonishing discovery: bots control about 51% of individual accounts, while the share of transactions driven by non-human intelligence amounts to 75%. User activity, transaction volume, and daily volume are the key metrics used to determine blockchain viability and validity; however, considering high bot activity, these figures may turn to be fake, according to Victor Fang, CEO of AnChain.
"Bot activity calls into question the integrity of such metrics and makes the industry much more difficult to understand, regulate, operate, and secure," he explained commenting on the importance of detecting bots activity.
To detect bots activity, the experts studied millions of transactions on top 10 gambling platforms based on EOS blockchain - they represent 65% of all EOS Dapp transaction volume.
"It is evident that the DApp, as the most prominent application of blockchain as of this writing, is currently being heavily influenced by bots; something that the industry needs to understand and address."
Fang believes that the bots are often created with malicious purposes like boosting Dapp ranking, increasing the liquidity of Dapp tokens, sabotage competitors and launch targeted attacks on vulnerable Dapps.
"The decentralized nature makes blockchains even harder to defend than cloud systems," Fang concluded.
However, in the long-run blockchains will evolve and become more secure both due to technology development and comprehensive regulation in the industry.
"Although the DApp ecosystem is currently unregulated, it is clearly trending towards regulation and as the top crypto exchanges come under the SEC's oversight, trading bots will likely be dealt with in a compliance regulation context."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.