Coinbase, the leading cryptocurrency exchange in the United States, is emphasizing the importance of accurately gauging the true adoption of blockchain technology beyond current measures.
In a recent blog post, Coinbase explains that as more applications are introduced, tracking the adoption of blockchain ecosystems becomes challenging due to distortions in traditional metrics like total transactions and daily active addresses caused by spam and Sybil attacks. Sybil attacks involve the creation of multiple fake identities in peer-to-peer networks.
To tackle these issues, Coinbase suggests using the h-index, originally designed to assess the productivity and impact of scientific publications. Coinbase has applied this concept to blockchains by monitoring the number of addresses that have received transactions a certain number of times.
According to Coinbase, “The h-index was first used in academia to quantify a researcher’s output and impact, calculated by considering the number of publications cited at least that same number of times. We have adapted this metric to analyze blockchain network activity by looking at the number of receiving addresses that have experienced transactions at least the same number of times. For example, an h-index of 100 indicates that 100 different receiving addresses have received transactions from at least 100 unique sending addresses within a specific timeframe.”
Using this new metric, Coinbase reveals that among Ethereum Virtual Machine (EVM)-compatible chains, ETH demonstrates the highest level of adoption, followed by Base, Arbitrum (ARB), Optimism (OP), Polygon (MATIC), Avalanche (AVAX), and Fantom (FTM).
“Our research shows that Ethereum and Base exhibit the most extensive user activity among those assessed, with Arbitrum and Polygon PoS closely following suit.”
In conclusion, Coinbase’s innovative approach sheds light on the adoption of blockchain technology, providing valuable insights into the activity of different networks and their user bases.
Source: Coinbase
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