Bots made 75% of transactions on all EOS dapps per report

via decryptmedia.com

It looks like EOS dapps might have even fewer users than we thought.

Just a quarter of EOS dapp transactions were made by real people, a new study claims.

The report was written by AnChain.AI—a blockchain startup which uses machine learning to analyse blockchain data. It concludes that 75 percent of transactions on EOS dapps were made by bot accounts using automated programs to make high levels of transactions.

In addition, the report found that half of all the EOS accounts using dapps were bots.

EOS dapps—like most dapp ecosystems—suffer from too few users, so the research findings are a matter for concern. According to dapp explorer DappRadar, just five EOS dapps had more than 1,500 users in the last 24 hours.

But the results of AnChain.AI’s report shouldn’t be a surprise. EOS transactions have no transaction fees, so there’s nothing to stop people spamming the network or using bot accounts to make thousands of automated transactions every day. Instead the network charges dapp developers storage fees, paid in the cryptocurrency RAM.

There are many reasons bot accounts are used. Dapp users may, for instance, be perfecting gaming strategies. Something that needs thousands of transactions will be easier if bots are used to make automatic transactions.

Backing up the report’s finding is data from DappRadar, as seen in the image below. This shows that the dapps with the highest daily transaction volume have remarkably few users.

Metrics such as user activity and daily volume are important indicators of a dapp’s success. Yet, as AnChain.AI points out, bot activity calls this all into question, making the industry “difficult to understand, regulate, operate, and secure.”

The dapp ecosystem is still maturing and is unregulated, and monitoring blockchain transactions that may be run by bots is hard.

Until processes are standardized and detection tools improve, it’s wise to take any stats from dapp ranking sites, such as DappRadar, with a pinch of salt.

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https://hacked.com/eos-price-remains-under-pressure-following-damning-report-on-malicious-bots/

Dapps Driven by Bots, Report Finds

The sharp drop-off in EOS’ price coincided with the release of a new study by blockchain hacker group AnChain.AI, which showed that the vast majority of dapp activity was driven by malicious bots.

The study, which analyzes dapp activity in the first quarter of 2019, found that a whopping 75% of total transactions on decentralized applications were from non-human accounts. More than half (51%) of new accounts were said to be created by bots.

AnChain.AI analysts focused on the top ten EOS blockchain dapps, which account for 65% of all transaction volume. From there, the hacker group was able to identify repetitive accounts that were deemed to be malicious bots.

While EOS’ performance cannot be tied directly to the report, the blockchain industry could face a crisis of legitimacy over inflated metrics caused by bots. With bots being so prevalent, the industry may need to adopt new measures to analyze the success of decentralized applications. Presently, ‘success’ and ‘failure’ is tied to perceptions about user adoption, which means growth metrics such as transaction volume.

As AnChain.AI rightfully noted, bots are by no means unique to the blockchain ecosystem. By 2018, nearly 40% of all internet traffic was driven by bots.

In terms of volume and users, dapp activity is dominated by just three blockchains: Tron, EOS and Ethereum. As of Tuesday, EOS accounted for three of the top-ten most active dapps, according to dappradar.com.

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