XRP Ledger Transactions, Real Human Users 0.8%?...Schwartz: "Ghost Chain Label is a Strange Claim"

▲ XRP, blockchain, AI bot, ghost chain/AI generated image

The XRP Ledger, based on XRP, has become embroiled in a 'ghost chain' controversy following an analysis that a small number of accounts accounted for over 93% of its transactions.

According to U.Today on September 10 (local time), blockchain analytics firm Bitquery analyzed that 793 accounts processed 93.2% of all transactions on the XRP Ledger in August. Of these, 767 were automated programs and 26 were classified as exchange wallets. The cumulative transactions processed by the XRP Ledger since 2013 totaled 5,060,515,108.

Bitquery analyzed that excluding automated transactions and spam, transactions corresponding to typical payments by real users accounted for only 0.8% of the total. About half of the active accounts using the XRP Ledger in August made only one transaction and did not engage in further activity. Based on this data, XRP critic Scam Daddy claimed the XRP Ledger was a 'ghost chain'.

Ripple's Chief Technology Officer Emeritus, David Schwartz, immediately refuted this claim. He stated, "That's a really strange claim," adding, "Transaction costs are very cheap, and it can be used for useful things as well as useless things." He then questioned, "Would the XRP Ledger be a better network if costs were higher and low-value transactions decreased?"

Schwartz's rebuttal focused on the interpretation that a high proportion of automated transactions in the overall transaction volume indicates a failure of the XRP Ledger, rather than the fact itself. Scam Daddy later explained, "I was merely emphasizing the composition of usage." The two sides' views diverged on whether the low transaction costs of the XRP Ledger are a reason for increased automated transactions or an indicator of a lack of real users.

The core of this debate is the proportion of activity generated by actual users, rather than the total number of XRP Ledger transactions. Bitquery's analysis showed that 793 accounts accounted for 93.2% of August's transactions, and the proportion of payments at the level of real users was 0.8%. Schwartz drew a line against the 'ghost chain' assessment, citing that low fees enable a variety of transactions.

[Key Article Summary]

-In August, 793 accounts were reported to have processed 93.2% of all transactions on the XRP Ledger.

-Bitquery analyzed the proportion of real user-level payments, excluding automated transactions and spam, to be 0.8%.

-David Schwartz refuted the claim categorizing the XRP Ledger as a 'ghost chain', stating that low transaction costs should not be seen as a problem.

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