We recently wrote about a new scoring system added to the Coinmarketcap service. It is, however, not the only notable source to publish scorings about cryptocurrencies. The government of China also observes the development of cryptocurrencies and scores them in order accordingly.
The Center for Information and Industry Development (CCID), working under the Ministry of Industry and Information Technology in China, regularly publishes estimates about the prospects of different cryptocurrency projects. The scoring system somewhat reminds of Coinmarketcap’s similar system and has similar cryptocurrencies at the top of the list, but there are also clear differences.
Three categories for scoring cryptocurrencies
In the Chinese scoring system, cryptocurrencies are scored in three categories. The most defining category is the “basic technology”, which forms 64% of the total score. In this category, scores are based on the technical advancements of the blockchain, decentralization, security, speed, and effectiveness. The best score based on technology goes to EOS, Tron, Bitshares, Steem, and Gxchain. China seems to regard bitcoin’s basic technology as inferior to others since bitcoin is left outside the top 20 in this category.
The second category estimates how well the blockchain can be used for creating practical applications. The top five of this category consist of Ethereum, NEO, Nebulas, Tron, and Ontology. According to the Chinese development center for information technology, the conditions to develop applications for different blockchains have improved recently and the scores of this category are generally higher than before. The category comprises twenty percent of the scoring.
The third category estimates the number of new innovations in the project and their realization, making it a kind of creativity index. In this category, bitcoin is valued as a clear number one. Other top 5 contenders are Ethereum, EOS, Litecoin, and Lisk. According to China, the scores of the creativity index have generally fallen, which indicates innovations have been declining in recent months.
Bitcoin places 15th, Ethereum-based cryptocurrencies at the top
According to Chinese estimates projects based on the Ethereum blockchain, which make smart contracts possible, are most promising. Many Ethereum-based projects gained better scores compared to previous months, most likely due to the successful Constantinople update implemented in Ethereum.
Despite being a clear number one based on its value and use, bitcoin has never been regarded as a top project by Chinese estimates. Its place fell from last month and was this time number 15. Among the top-5 cryptocurrencies also ripple (18.) and litecoin (32.) were left far from the top of the list. EOS in turn has remained a top contender since last summer. The list estimates 35 crypto projects, of which Tron was added only last month. Already in its second month, Tron rose to second place on the list, so Chinese authorities have obviously paid attention to this cryptocurrency project run by Justin Sun.
Justin Sun is known to have relations with Jack Ma, founder and the largest owner of Alibaba, which has led to some speculation about Tron’s and Alibaba’s possible collaboration. So far Alibaba has, however, not accepted Tron as a form of payment or officially confirmed any agreement between the two parties. Alibaba is the largest webshop in Asia, so any collaboration would probably be positive news for Tron owners.