Binance Research Shows How To Analyze Tokens And Evaluate Blockchain Projects

The token analysis and research for any blockchain project is limited. This is about to change with Binance announcing a new framework. Through this standard framework, you can learn more about the underlying source code and the technological implementation of the existing projects.

All you have to do is glance through the project information.

For example: Let us take BAT (Basic Attention Token), as stated in theĀ Github. You can quickly see the details of the BAT token: built on a specific platform (Ethereum), the token standard (ERC20), fungibility status, token type (utility or security), supply, and much more. Here is the summary:

BAT-Token-Analyzed.jpg

What Does It Mean To You?

The standard framework is slowly growing, and it has 9 criteria that are taken into account. For all of us, this is an important move aligning with the company’s mission: to bring transparency into the industry.

The framework’s criteria are also listed on this page. In short, to evaluate a blockchain-based token, these factors are considered:

  1. Blockchain(s) and Layer(s) used (can be single or multiple blockchain)
  2. Ownership Model: UTXO vs. Account-Based Model
  3. Native vs. Constructed Standard
  4. Fungibility Status
  5. Transfer and Ownership Restrictions
  6. Scarcity: Mint-ability and Fixed Maximum Supply
  7. Divisibility and Precision Level (such as 18 decimals)
  8. Privacy Features
  9. Governance and Other Additional Functions (built in the smart contract)

With thousands of cryptocurrencies out there, we need something like this. As Binance expands, the list will continue to grow, and we will have advanced criterias to distinguish quality projects from the non-quality ones.

Binance Research is also inviting contributors. Any contributor can add value to this framework by submitting pull requests, which will be reviewed by the internal team.

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