Popular Bitcoin and digital currency exchange Huobi has released a quantitative analysis model that evaluates different digital currencies based on blockchan technology using a number of variables. Known as SMARTChain and designed with aid from academics, the model intends to function as a manual for international traders who have an interest in digital currencies and a want for a more scientific approach to appraise every platform’s variations. Presently in beta, the results of the model will be updated monthly and quarterly to pay attention on people with the best marketplace capitalization.
Lending weight to the project is that Tsinghua College, one of the most prestigious establishments in China, had its faculty of Finance design the assessment model. It decided to apply five variables for the analysis including a blockchain’s relevance for real-life programs, its public and media interest, its buying and selling volume, its credibility and danger for inflation, and its technological layout. Evaluated ultimately by the Huobi Blockchain research center, the model assigns rankings to each blockchain in order to generate a final top-twenty rating.
Bitcoin, ethereum and litecoin ranked in top three in an initial analysis, garnering rankings of 88.07, 70.67 and 69.62 points respectively. Ripple and ethereum classic take fourth and fifth, respectively.
In line with the tool’s creators, the ratings shows how much ability every digital currency has as a long-term investment. Apparently, the three top tokens also are the digital currencies that can be traded on Huobi, in which litecoin dominates volume, accompanied by ethereum and bitcoin. Nevertheless, as the model has just released, the ones involved admit its accuracy and performance stay to be seen.