China’s Recent Report: 80% of Cryptocurrencies Are Suspected Of Plagiarizing Codes
A recent report indicated that 405 cryptocurrencies surveyed are found to have over 90% similarity in their codes,a state-run Chinese publication Securities Daily reported on September 8.
Researchers from Xi’an Jiaotong University in northwest China’s Shaanxi Province and staff at the Netta Lab, a decentralized operating system that protects Internet information sovereignty, selected 488 cryptocurrencies which use open codes, and then adopted pairwise comparison method to compare the similarity of their codes.
Their findings suggested that out of the 488 cryptos, only 38 projects achieve a score of less than 80 percent in terms of code similarity, 324 digital assets’ codes have 95% to 100% similarity score, and the remaining’s code similarity rate range from 80% to 95%.
Xie Shaoyun, founder of Netta lab told the reporter that the high code similarity score showed that there is a bubble in the blockchain industry. “So many blockchain projects shift their focus from technology development to marketing that lead to the increasing number of copying and plagiarisms in this field.” Xie said.
She also added that this phenomenon also highlighted blockchain projects lack technological innovation, as well as systematic thinking about underlying technology. Some other industry analysts pointed out that most of the digital currencies traded on the market now leverage several mainstream technical architectures, like bitcoin and Ethereum blockchains. Therefor, their codes are similar.
Copying is an intrinsic part of human nature. Copying codes is not uncommon in the space, for example, the codebase of Litecoin, the seventh largest cryptocurrency in terms of market value, has greatly deviated from bitcoin. The problem is that a lot of ‘ fake’ cryptocurrencies intentionally plagiarise others’ code or slightly modified to pass it off as their own, and some even plagiarize others’ white paper. Crypto scammers usually use such tactic to cause investors to suffer major losses.
Chinese government has stepped up their ban on cryptocurrency and ICO related activities, in an effort to protect individual investors from suffering great economic loss.