Coin Metrics classifies blockchain networks based on node quality

Coin Metrics classifies blockchain networks based on node quality

A report published by Coin Metrics ranks blockchain networks based on node quality. Specifically, the criteria taken into account are the speed of synchronization, updating and maintenance.

The first 10 blockchains were considered as market cap, except for XRP and XLM. According to Coin Metrics, they were not classified because the data comes from the Ripple and Stellar Foundation APIs.

This ranking is particularly relevant because nodes are the essential elements that underpin all blockchain networks. They have the role of running and checking the blockchain, connecting the peer-to-peer network and many other actions.

What is a node and how does it work?

The top evaluates the nodes of Bitcoin, Bitcoin Cash, Bitcoin SV and Litecoin with A, while Ethereum has been evaluated with B.

The rating is surprising because Ethereum is considered one of the most important blockchain networks in the industry. The disadvantages mentioned by the Coin metrics result from the users having to run a tracking node to be audited in the historical register.

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This node variant takes a long time to synchronize, which is why the research group gave it a B.

Two blockchains received the F rating: EOS and Binance Chain

The justification for the low EOS score is related to the complexity of extracting the data needed to complete an audit. Binance Chain’s low ranking comes from DEX’s “complex fee schedule” and the fact that the network is based on a closed source code.

Coin Metrics does not include C or D networks.

This type of evaluation is important because the ease of running, auditing and synchronizing the nodes is an important aspect of the future growth of networks.