Coinbase, the leading cryptocurrency exchange in the United States, highlights the importance of accurately measuring the true adoption of blockchain technology beyond current standards.
In a recent blog post, Coinbase acknowledges the challenges of tracking blockchain adoption as more applications are introduced. Traditional metrics like total transactions and daily active addresses are often skewed by spam and Sybil attacks, where multiple identities are created in peer-to-peer networks to manipulate data.
To tackle these issues, Coinbase suggests utilizing the h-index, originally designed to gauge the productivity and impact of scientific publications. By adapting this metric to blockchain technology, Coinbase tracks the number of addresses that have received transactions a certain number of times.
Explaining the concept, Coinbase states, “The h-index, initially used in academia to quantify a researcher’s output and impact, now measures blockchain activity by counting addresses that have received transactions a specific number of times. For instance, an h-index of 100 indicates that 100 unique receiving addresses have interacted with at least 100 distinct sending addresses within a defined period.”
According to Coinbase’s analysis using this new metric, Ethereum (ETH) exhibits the highest level of adoption among Ethereum Virtual Machine (EVM)-compatible chains. Base, Arbitrum (ARB), Optimism (OP), Polygon (MATIC), Avalanche (AVAX), and Fantom (FTM) follow suit, with Ethereum and Base showing the most widespread user activity.
The report concludes that Ethereum and Base lead in user engagement, with Arbitrum and Polygon PoS closely behind in adoption levels.
Image: Midjourney
Source: Coinbase
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