Categories: CRYPTO

Coinbase proposes new blockchain adoption metric to combat airdrop-related distortions


Crypto exchange Coinbase has unveiled a new metric dubbed the h-index to address distortions in tracking onchain adoption caused by airdrop-related activities.

Coinbase, a publicly traded U.S.-based cryptocurrency exchange, known for its development of Base, a layer-2 solution for Ethereum, has introduced a new metric to provide a more accurate measure of blockchain network adoption. This new metric aims to mitigate distortions caused by airdrop-related activities and Sybil attacks.

In a research report on Friday, Coinbase noted that investments in blockchain infrastructure have led to an excess of blockspace, making onchain transactions cheaper and fueling networks with a new wave of decentralized applications. However, this change also made it challenging for analysts to track ecosystem adoption as more applications launch.

Traditional network metrics such as total transactions or daily active addresses can be skewed by Sybil attacks and airdrop activities, Coinbase says. To address this issue, Coinbase proposes a new metric called the h-index, which balances the depth and breadth of onchain adoption. The h-index counts the number of addresses receiving transactions from at least that same number of unique sending addresses.

“In other words, an h-index of 100 means that 100 different receiving addresses had received transactions from at least 100 unique sending addresses over a given time frame.”

Coinbase

According to Coinbase’s findings, when h-index applied, Ethereum and Base networks exhibited the most widespread user activity for the week ending Jun 6, followed by Arbitrum and Polygon.

H-index for blockchain networks | Source: Coinbase

While acknowledging the metric’s imperfections, Coinbase believes the h-index can shed “new perspectives on comparative chain adoption by mitigating the outsized influences of Sybils and measuring growth more broadly.”

The crypto exchange noted though that challenges still remain, including differences in blockchain execution environments, which can affect transaction formats and data interpretation. Additionally, the influence of exchange or other smart contract wallets “could also distort numbers,” Coinbase admits.

Sybil attacks are a well-known type of network attack in the crypto industry where a single entity creates multiple fake identities or nodes to gain control over a network or influence its operation. This sort of activity can manipulate network metrics and data by creating numerous false accounts or addresses to inflate transaction volumes or user activity artificially to distort the perception of network usage and adoption.



Source link

NewHampshireDigitalNews.com

Share
Published by
NewHampshireDigitalNews.com

Recent Posts

‘I almost couldn’t believe it’: Amazon expedition stuns researchers

In the Andean foothills of the Peruvian Amazon, Trond Larsen carefully scanned the forest floor. Out…

6 hours ago

Inappropriate apps rated as safe for young children are prevalent in the App Store, report warns

A new published by the child safety groups Heat Initiative and ParentsTogether Action details the…

6 hours ago

How Feminism Can Guide Climate Change Action

This year is projected to be the hottest on record. The latest United Nations estimates…

6 hours ago

Choosing Purposeful Goals

  Choosing Purposeful Goals Choosing goals that align with your purposes and values is essential…

7 hours ago

The 20 Best Semi-Annual Sales Happening in 2025

If you love bringing home a bargain, then mark the following semi-annual sales dates on…

7 hours ago

Ethereum whales are accumulating Shiba Inu and Remittix

Disclosure: This article does not represent investment advice. The content and materials featured on this…

8 hours ago