China Government Crypto Ratings: Ethereum 1st, Bitcoin 13th

China’s Ministry of Industry and Information Technology has published its first cryptocurrency ratings. The “domestic experts” ranked Ethereum 1st and Bitcoin only 13th out of 28 places May 17.

According to a report from onlinee cryptocurrency news account cnLedger,  the Chinese top five cryptocurrencies are lead by Ethereum, followed by Steem, Lisk, NEO and Komodo.

Earlier this week, the Chinese government made it clear they were working on a cryptocurrency rating system.

The whole rating looks like this:
1-5: ETH, STEEM, LSK, NEO, KMD
6-10: XLM, ADA, IOTA, XMR, STRAT
11-15: QTUM, BTS, BTC, XVG, WAVES
16-20: ETC, XRP, DASH, SC, BCN
21-25: LTC, ARK, ZEC, NANO, BCH
26-28: DCR, HSR, XEM

That system aimed at ranking public blockchain projects and cryptocurrencies. Initial tranche of top 28 coins has been put together a few days ago. The list itself includes most of the well-known currencies, although the officially released rankings surprised many people in the space. Three different key factors are included for every project: technology, application, and innovation.

As you would expect, Bitcoin has the highest score in the innovation aspect. Considering its first-mover advantage, that comes as no surprise. All other currencies ranked came into existence after bitcoin.

However, a high-ranked innovation spot doesn’t make Bitcoin all that great. The overall rank for Bitcoin ins only 13 out of 28, which is right in the middle of the pack – “average” at best.

Other ranking criteria was technology and Bitcoin had the lowest score of the entire top 15. It got a 39.4 percentile, which is rather terrible. However, new layer 2 scaling solutions might improve this once they are fully implemented. However, we have a long way to go until then and Chinese marked it as the lease technologically-adept coin in the top 15.

Application purpose was also a low-score for bitcoin since it, as most of the others, has no real world use at the moment, aside of being a good store of value.

“The results show that the typical representative of the second-generation blockchain technology is Ethereum’s technology assessment index with a smart contract function of 129.4, ranking first in the assessment list, and the evaluation index is ranked second to fifth,” local news outlet China Electronics News summarizes linked by social media resource CnLedger.

 

Cryptocurrencies Must Meet 5 Criteria To Make the List

The Chinese Ministry created a defined set of requirements for this analysis of cryptocurrencies. It’s clear they wanted to focus on Bitcoin and the altcoins, excluding all tokens. Popular tokens such as Cryptokitties, EOS, Tron, among many others, have been left out.

  1. Cryptocurrencies must have its own independent blockchain;
  2. Users must be able to mine it or create public nodes;
  3. There must be an open block browser;
  4. Its code must be open source;
  5. There must be a homepage with contacts the institute can reach.
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CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com

Rene Peters

Rene Peters

Rene Peters is editor-in-chief of CaptainAltcoin and is responsible for editorial planning and business development. After his training as an accountant, he studied diplomacy and economics and held various positions in one of the management consultancies and in couple of digital marketing agencies. He is particularly interested in the long-term implications of blockchain technology for politics, society and the economy.

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