Developers Of More Than 400 Cryptocurrencies Caught Plagiarizing
Recent studies of Jiaotong University in Xi'an (Shaanxi Province, China) showed that developers of 405 cryptos use the code that has an average match rate over 90% for the most part of the existing cryptocurrencies, Securities Daily reports.
The University researchers and the team of The Netta Lab, which designed a decentralized operating system that supports the Internet content sovereignty, selected 488 open-source cryptocurrencies for a pairwise comparison of their similarities.
The study revealed that only 38 coins have a code similarity index of less than 80%, 126 cryptocurrencies reach a rate varying from 80% to 95%, and the remaining 324 are basically identical — 95%.
Xie Shaoyun, the founder of Netta Lab, noted that the indexes of a very close similarity indicate that the “bubble” has formed in the blockchain industry. According to Shaoyun, due to the increasing number of projects based on blockchain technologies, creators switch from actual technology development to the marketing part of their projects. It leads to "the increasing number of copying and plagiarisms" in this area. She stressed that this shows that the blockchain industry doesn't have any technological innovations at the moment.
Also blockchain analysts noticed that a number of the cryptos in the market are based on the common development models, for example, Bitcoin or Ethereum ones, thus their codes are so alike.
The main problem is that plenty of developers of fake cryptos intentionally apply the same or slightly modified code of well-known digital assets. Thus, clients, contributing the funds to such projects, can lose a significant part of their investments.
As previously reported, to support the security of the country's financial system, Guangzhou authorities banned any crypto operations in the region.