The Public Blockchain Ecosystem: An Empirical Analysis

Abstract

We examine the universe of public blockchains over time, providing several important empirical insights. Of particular note, we identify a class of blockchains, referred to as modern blockchains, that are especially relevant for business applications. These modern blockchains are both environmentally sustainable and possess the ability for advanced functionality (i.e., smart contracts). Relatedly, there exist a variety of non-trivial economic applications already occurring on public blockchains, and we demonstrate that the vast majority of such activity occurs on modern blockchains. Our work highlights the fading relevance of Bitcoin and the need for researchers and practitioners to focus more so on modern blockchains.

Keywords: Modern Blockchains, Smart Contracts, Proof-of-Stake, Decentralized Finance

JEL Classification: C0, G0, O3