Study: 75% of Dapp transactions are now done through bots
AnChain.AI, a block chain ecosystem security company powered by AI, published a report showing that the equivalent of $ 6 million in transaction volume was driven by unbridled and malicious bots in Dapps in the first quarter of 2019.
The report says the following, the larger scale study of malicious robots in the EOS ecosystem, also found that 51 percent of single accounts and 75 percent of total transactions were driven by non-human accounts. Bot activity threatens the integrity of the blockchain industry, since user activity, volume of transactions and daily volume are among the metrics most frequently requested to determine technological validity, and precisely that is what It is being falsified, said Victor Fang, CEO of AnChain.
AnChain is backed by Amino Capital, a Palo Alto VC firm, and has 15 employees.
The study examined millions of transactions from the top 10 Dapp platforms of EOS blockchain games, which account for 65% of the entire volume of EOS Dapp transactions, to monitor performance and detect suspicious activity. Using artificial intelligence, AnChain was able to eliminate repetitive or hyperactive accounts to determine that they were malicious robots.
Fang suggests that these stand-alone players are programmed to increase the Dapp rating, increase the liquidity of Dapp’s utility tokens, obtain non-licit gains over Dapp’s payment dividends, sabotage competitors by congesting the Dapps or launch targeted attacks. against vulnerable Dapps.
In particular, during the study, AnChain identified five Ethereum addresses behind an extremely sophisticated attack that employed 50,000 malicious self-destructing bots to steal $ 4 million over two weeks, exploiting a contract failure in a popular game.
The study continues to suggest that bot activity is a feature, not an error, of decentralized block chains. Pseudo-anonymous transactions “leave the door open to robots that are not detected for long periods of time,” compared to IP-based Internet accounts that are governed by a central authority, such as ICANN or the SEC. “Decentralized nature makes blockchain chains even more difficult to defend than cloud systems,” said Fang.
Although Fang also admits: “In the long term, block chains will be safer.” However, due to the way in which cryptography has been implemented, there is currently no way to ensure organic growth. Although AnChain only examined EOS, its findings coincide with a report compiled by the SEC, which found that “95 percent of the volume of Bitcoin reported is false.”
This does not mean that bots are just a problem for blockchains. The report cites a study that shows that almost 40% of all Internet traffic alone in 2018 was driven by a robot. In fact, Fang made an allusion to the early days of the Internet, when it seemed that only gambling and pornography sites could prosper. Ultimately, he suggests, block chains need greater accountability, whether from a centralized authority or a decentralized action.
“This is the first time that a company uses deep learning to make an X-ray of all major transactions and ask how healthy this ecosystem is,” said Fang. “People will have to realize that it’s a problem and take action against them.”
The study found that the most active Dapp, EOS, which represents $ 480 million in volume of weekly transactions, has only a small percentage of bot activity. It is the lagging Dapps that represent a substantial amount of suspicious transactions. In fact, the second most popular Dapp exhibited most of the bots, approximately 1,900 of the 4,500 unique users of the platforms. The authors suggest: “This dynamic points to the competitive nature of the Dapp world where the finalists are taking advantage of the bots to increase the overall metrics of ecosystem use.”
The authors also point out that the second most popular Dapp has approximately four times the number of transactions on its platform, such as signaling or use by users, but that does not reach popularity. These counterfeit numbers skew the data sets, trick investors, regulators, builders, operators and enthusiasts into the process.
Fang said that the unreliable platforms will have long-term negative consequences for an industry that is still developing. The company suggests that, in order to preserve legitimate competition and achieve serious adoption, developers should institute automated quality control tests on their platforms and discourage deception through the deployment of malicious robots.
Ironically, much of this protocol can be initiated transparently through the use of “good robots”, which can automate the detection and enforcement of regulations.
In addition, in slower Dapps, good bots could be programmed to interact with human players, who will not always find other players to play with, “a bot will be deployed to fill the gap.”
This is a very interesting topic, the blockchain industry has many investors who need to have clear accounts, the investment of capital resources needs transparency, good subject. It waits for new announcements
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