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“We need to move NFTs onto the Layer 2 ecosystem to cut fees. However, doing that *right* requires good cross-rollup portability standards, so the ecosystem can avoid getting locked into one particular L2.” – Vitalik Buterin, Creator of Ethereum
Many folks are aware of the latest none-fungible token (NFT) craze that has occurred over latest months, with digital photos of rocks and pixelated characters promoting for tens of millions of {dollars}. Bubble, fad, or the beginning of one thing a lot larger? That, we can not know, and we aren’t going to focus on the validity of NFTs as an funding (learn: hypothesis) in immediately’s Daily Dive, however quite we are going to dive into the comparability of Bitcoin versus Ethereum as financial settlement networks, as Ethereum proponents have tried to body ETH as “ultrasound money” more and more over the course of 2021.
Today, we’ll study varied metrics evaluating the quantity and effectivity of settlement on the bottom layer of the Bitcoin and Ethereum networks.
The very first thing that is key to distinguish is the distinction between switch quantity and change-adjusted switch quantity.
For an in-depth description of how change outputs work, click here.
When whole switch quantity throughout the bottom layer of the Bitcoin and Ethereum networks, the seven-day common for switch volumes are as follows:
BTC: $168.5 billion
BTC (change adjusted): $41.8 billion
ETH: $8.7 billion
Below are the charts in each linear and logarithmic scale:
BTC Versus ETH Total Transfer Volume (Log)
BTC Versus ETH Total Transfer Volume (Linear)
Here is the comparability of the typical every day charges on the bottom layer of each blockchains during the last week:
BTC: $0.8 million
ETH: $54.3 million
BTC Versus ETH Daily Fees ($) (Linear)
BTC Versus ETH Daily Fees ($) (Log)
When evaluating the effectivity of settlement (whole every day worth switch divided by every day charges) of the 2 blockchains, the comparability could not be extra clear.
Bitcoin is function constructed for one factor: worth storage and settlement. It is the world’s first and solely perfected financial settlement community, and it is actively scaling to serve the complete globe.
Below is the comparability of settlement effectivity (whole every day worth switch divided by every day charges) between the 2 blockchains:
BTC: 206,989
BTC (change adjusted): 51,428
ETH: 160
