We use to address the cryptocurrency rankings based on market capitalization, such as CoinMarketCap’s one.
However, the data underlying the rankings like this cannot be described as accurate, at least, because it’s unknown how many Bitcoins were lost for various reasons. According to some estimates, the number can reach 1,500,000 coins. Supposedly, such uncertainty was observed for other coins as well, which casts doubt on the validity of the method.
Consequently, the following question arose: Is it possible to create a ranking based on more accurate and verifiable data?
According to the authors of Coinmonks, which is a non-profitable crypto educational publication, the ranking is possible if it is based on the number of nodes that a certain coin has run in the field.
A node is a unit of a blockchain network, which is essentially a computer with an application of cryptocurrency wallet installed. All the nodes of a network are connected by peer-to-peer (P2P) protocols and exchange block and transaction data with each other.
According to the authors, the node-based approach to ranking reflects the real level of development of a blockchain and forms a more objective picture for assessment of the main digital players.
The authors took the first 100 coins of this list by CoinMarketCap and examined the number of active nodes in each network for the last 24 hours.
As it is seen from the table, the blockchain platform Horizen, which had been ranked 30th in the original CoinMarketCap’s ranking, has the biggest number of nodes, 30679.
Bitcoin and Ethereum took the second and third places, respectively, which is quite close to CoinMarketCap, having 9461 and 7832 nodes. However, the fourth and fifth positions are surprising too: there are Zcoin, the 34th in the CMC ranking, and Pac Global, the 69th.
It’s possible that the method is yet to be applied. One can argue its practical value, but, unquestionably, the ranking provides a new point of view for assessing the assets proceeding from the real level of activity and the most important characteristics for any cryptocurrency, which is decentralization.
It is worth noting that Bitcoin has proved its decentralization and, therefore, reliability via the new measurement method. Subscribe to Coinmatics and monitor global trends of the cryptocurrency world.
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