Crypto alternate Coinbase has unveiled a brand new metric dubbed the h-index to handle distortions in monitoring onchain adoption brought on by airdrop-related actions.
Coinbase, a publicly traded U.S.-based cryptocurrency alternate, identified for its growth of Base, a layer-2 resolution for Ethereum, has launched a brand new metric to supply a extra correct measure of blockchain community adoption. This new metric goals to mitigate distortions brought on by 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. Nonetheless, this alteration additionally made it difficult for analysts to trace ecosystem adoption as extra functions launch.
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Conventional community metrics reminiscent of complete transactions or day by day energetic addresses might be skewed by Sybil assaults and airdrop actions, Coinbase says. To deal with this problem, 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 no less than that very same variety of distinctive sending addresses.
“In different phrases, an h-index of 100 implies that 100 completely different receiving addresses had obtained transactions from no less than 100 distinctive sending addresses over a given time-frame.”
Coinbase
Based on Coinbase’s findings, when h-index utilized, Ethereum and Base networks exhibited essentially the most widespread person 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 progress extra broadly.”
The crypto alternate famous although that challenges nonetheless stay, together with variations in blockchain execution environments, which might have an effect on transaction codecs and information interpretation. Moreover, the affect of alternate or different good 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 pretend identities or nodes to achieve management over a community or affect its operation. This type of exercise can manipulate community metrics and information by creating quite a few false accounts or addresses to inflate transaction volumes or person exercise artificially to distort the notion of community utilization and adoption.
Learn extra: Arbitrum airdrop marred by Sybil assaults
