Research 1 comment on Evaluating Bitcoin forks with network data

Evaluating Bitcoin forks with network data

Determining the success of a UTXO fork is a fraught exercise. There is no agreed-upon standard for measuring adoption. Establishing the existence of genuine activity is therefore challenging to the say the least. The list of potential proxies is long: full blocks, a robust fee market, an elevated transaction volume, a high transaction count, to name a few. And, unhelpfully, given that forks are often competitive with the parent chain, and compete for scarce attention and resources, quantitative metrics which offer insight into the usage of a given chain are often targeted for spoofing or manipulation.

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Research 2 comments on Granular mining pool mapping with Bitcoin’s coinbase outputs

Granular mining pool mapping with Bitcoin’s coinbase outputs

How concentrated is block formation in Bitcoin? Which mining pools are dominant, and how long have they held that position? Are major pools in a position to collude and censor transactions? Which miners should developers and key stakeholders engage with? How exposed is Bitcoin to potentially malicious miners? Are major pools reinforcing their dominant positions or is the industry becoming more competitive? (This was an issue covered by Ark Invest in mid 2018.)

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Research 11 comments on Don’t trust, verify: A Bitcoin Private case study

Don’t trust, verify: A Bitcoin Private case study

Bitcoin Private (BTCP) is a fork-merge of Bitcoin and ZClassic (ZCL, a fork of ZCash that removed the founders’ reward). BTCP defined its initial supply according to the sum of the outstanding supply of Bitcoin at the time (16.8m), ZClassic (3.4m) and a small 62,500-unit miner program. This was intended to give it an initial supply of ~20.4m BTCP, with a decaying miner reward, capping the total supply at 21m units as with Bitcoin.

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Research 2 comments on What should we expect from Bitcoin’s block size in the coming years?

What should we expect from Bitcoin’s block size in the coming years?

tl;dr: under full SegWit adoption you should expect blocks in the 1.6-2 mb range, with larger outliers. 

How big will Bitcoin blocks get under reasonable assumptions? This investigation began with the simple realization that Bitcoin had recently hit an all time high in its average block size over a 24 hour period, at 1.20 mb.

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Research, Statistics 13 comments on Introducing our adjusted transaction volume estimates

Introducing our adjusted transaction volume estimates

As we have exhaustively covered, getting accurate estimates of the actual economic throughput of public blockchains is not a trivial task. Due to the existence of mixers, self-churn, privacy enhancements, spam, and change outputs (in UTXO chains), raw estimates of transactional value are often misstated by a factor of 10 or more.

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Research, Statistics 0 comments on An analysis of batching in Bitcoin

An analysis of batching in Bitcoin

On May 6th, 2017, Bitcoin hit an all-time high in transactions processed on the network in a single day: it moved 375,000 transactions which accounted for a nominal output of about $2.5b. Average fees on the Bitcoin network had climbed over a dollar for the first time a couple days prior.

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Research, Statistics 4 comments on Thoughts on ratios

Thoughts on ratios

Coinmetrics was created to publish hard-to-acquire data about major public blockchains, and to promote some ratios we thought were instructive. Since the founding of this website, the field of cryptoasset valuation has matured and grown significantly. The cryptoassets in question also continue to grow and change, meriting thoughtfulness about various analytical tools. While users are more empowered than ever, uncertainty remains about a) whether ratio analysis is appropriate, b) how to interpret major ratios, and c) the shortcomings of such analyses. In this piece, we’ll discuss ratio analysis and discuss its shortcomings and some common mistakes. As always, we urge skepticism and restraint in the interpretation of our data.

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Research 5 comments on On the difficulty of estimating on-chain transaction volume

On the difficulty of estimating on-chain transaction volume

We are happy to report that this site is getting quite a bit of attention these days. We never anticipated this when we first decided to put together a public repository of cryptocurrency data. With lots of attention comes lots of trouble. One thing we’ve always worried about is how to carefully present data which is very noisy by its very nature.

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Research 5 comments on Our guide to the cryptoasset research universe: Indices

Our guide to the cryptoasset research universe: Indices

As new asset classes emerge, parallel information markets spring up to accomodate them. After all, financial markets are simply mechanisms to compensate the informed. Ultimately, markets are information-discovery systems, and it’s no surprise that a huge set of cryptoasset information services have appeared in the last few months to cater to investor demand. Coinmetrics.io is one such entity.

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