Coinbase, the leading cryptocurrency exchange in the United States, emphasizes the importance of accurately gauging the true adoption of blockchains beyond current measures. In a recent blog post, Coinbase acknowledges the challenges of tracking blockchain ecosystem adoption as more applications emerge. Traditional metrics such as total transactions and daily active addresses are skewed by spam and Sybil attacks, which involve creating multiple fake identities in peer-to-peer networks.

To tackle these issues, Coinbase suggests utilizing the h-index, originally used to assess the productivity and impact of scientific publications. By adapting this metric to blockchain technology, Coinbase monitors the number of addresses that have received transactions a certain number of times.

Explaining the concept further, Coinbase states, “The h-index, a tool from academia to quantify research output and impact, is now applied to measure blockchain network activity. An h-index of 100 signifies that 100 unique receiving addresses have received transactions from at least 100 different sending addresses within a specified period.”

According to Coinbase’s analysis using this new metric, Ethereum (ETH) shows the highest level of adoption among Ethereum Virtual Machine (EVM)-compatible chains, followed by Base, Arbitrum (ARB), Optimism (OP), Polygon (MATIC), Avalanche (AVAX), and Fantom (FTM). The report highlights Ethereum and Base as having the most extensive user activity, with Arbitrum and Polygon PoS closely following.

In conclusion, Coinbase’s research underscores the importance of accurately measuring blockchain adoption to understand the true impact and reach of these technologies. By utilizing innovative metrics like the h-index, the industry can gain deeper insights into the evolving landscape of blockchain ecosystems.

Source: Coinbase

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