Crypto alternate Coinbase has unveiled a brand new metric dubbed the h-index to deal with distortions in monitoring onchain adoption attributable to airdrop-related actions.
Coinbase, a publicly traded U.S.-based cryptocurrency alternate, identified for its improvement of Base, a layer-2 answer for Ethereum, has launched a brand new metric to offer a extra correct measure of blockchain community adoption. This new metric goals to mitigate distortions attributable to airdrop-related actions and Sybil assaults.
In a analysis report on Friday, Coinbase famous that investments in blockchain infrastructure have led to an extra of blockspace, making onchain transactions cheaper and fueling networks with a brand new wave of decentralized functions. Nevertheless, this variation additionally made it difficult for analysts to trace ecosystem adoption as extra functions launch.
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Conventional community metrics akin to whole transactions or day by day energetic addresses may be skewed by Sybil assaults and airdrop actions, Coinbase says. To deal with this challenge, Coinbase proposes a brand new metric known as the h-index, which balances the depth and breadth of onchain adoption. The h-index counts the variety of addresses receiving transactions from at the least that very same variety of distinctive sending addresses.
“In different phrases, an h-index of 100 signifies that 100 completely different receiving addresses had obtained transactions from at the least 100 distinctive sending addresses over a given timeframe.”
Coinbase
In response to Coinbase’s findings, when h-index utilized, Ethereum and Base networks exhibited essentially the most widespread consumer exercise for the week ending Jun 6, adopted by Arbitrum and Polygon.
H-index for blockchain networks | Supply: Coinbase
Whereas acknowledging the metric’s imperfections, Coinbase believes the h-index can shed “new views on comparative chain adoption by mitigating the outsized influences of Sybils and measuring development extra broadly.”
The crypto alternate famous although that challenges nonetheless stay, together with variations in blockchain execution environments, which may have an effect on transaction codecs and knowledge interpretation. Moreover, the affect of alternate or different sensible contract wallets “might additionally distort numbers,” Coinbase admits.
Sybil assaults are a widely known sort of community assault within the crypto business the place a single entity creates a number of faux identities or nodes to realize management over a community or affect its operation. This form of exercise can manipulate community metrics and knowledge by creating quite a few false accounts or addresses to inflate transaction volumes or consumer exercise artificially to distort the notion of community utilization and adoption.
Learn extra: Arbitrum airdrop marred by Sybil assaults
