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Coinbase proposes a new metric to accurately track blockchain and cryptocurrency adoption
Coinbase, the largest cryptocurrency exchange in the United States, says it needs to accurately measure the real adoption of blockchains beyond what already exists.
In a new blog post, Coinbase He says that as more applications launch, tracking the adoption of blockchain ecosystems becomes difficult as traditional metrics such as total transactions or daily active addresses become distorted due to spam and Sybil attacks – an exploit that involves the creation of multiple identities in peer-to-peer networks.
To address these difficulties, Coinbase proposes to use the h-index, originally created to measure the productivity and impact of scientific publications.
Coinbase says it took the h-index and adapted it to blockchains by tracking the number of addresses that received transactions the same number of times.
Coinbase says:
“The h-index originated in academia as a way to quantify a researcher’s research output and impact, calculated by counting the number of publications that have been cited at least the same number of times. (For example, five publications cited five times each would have an h-index of five.)
We adapted this metric to measure activity on blockchain networks by looking at the number of addresses that have been recipients of transactions at least the same number of times. In other words, an h-index of 100 means that 100 different receiving addresses have received transactions from at least 100 unique sending addresses in a given period of time.
Using the new metric, Coinbase says that among all Ethereum Virtual Machine (EVM) compatible chains, ET has the highest level of adoption, followed by Base, Arbitrum (ARB), optimism (OPERATION), Polygon (MATIC), Avalanche (AVAX) and Ghost (FTM).
“Our results indicate that Ethereum and Base have the most widespread user activity of those measured, followed closely by Arbitrum and Polygon PoS.”
Source: Coinbase Don’t miss a beat – subscribe to receive email alerts directly to your inbox
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