Project : Flow

Bounty Name : FLOW User Retention vs Other Chains

Question: Create a detailed analysis comparing user retention on Flow vs. other L1 chains like Ethereum and Solana. How often do users who make a transaction come back and make another transaction one month later? How do monthly active users compare between chains?

Date of analysis : 2022-12-19

Flow

Flow is basically a decentralized, fast, and developer-centric blockchain tailored for encouraging the growth of a completely new assortment of apps, games, and digital assets. Flow blockchain utilizes a distinct, multi-role architecture that focuses on the inherent benefit of scaling without sharding. Therefore, it can enable considerable advantages by improving throughput and speed while maintaining ACID compliance and a developer-friendly environment. Flow is an ideal instrument for developers to create profitable crypto and crypto-based businesses.

The applications on Flow could also help consumers take control of their individual data. At the same time, Flow also helps in creating completely new variants of digital assets, which you can trade on open marketplaces which are accessible from any location in the world. Another important aspect in the answers to ‘what is Flow blockchain’ is directly evident in its capabilities for enabling the development of open economies under the ownership of users, which add further value.

You can assemble smart contracts on Flow blockchain just like you would join Lego blocks together. Flow blockchain helps in creating and powering apps, which cater to the needs of billions of people as well as enterprises with mission-specific requirements. source

Ethereum

Ethereum is a decentralized blockchain network powered by the Ether token that enables users to make transactions, earn interest on their holdings through staking, use and store nonfungible tokens (NFTs), trade cryptocurrencies, play games, use social media and so much more.

Many consider Ethereum to be the internet’s next step. If centralized platforms like Apple’s App Store represent Web 2.0, a decentralized, user-powered network like Ethereum is Web 3.0. This “next-generation web” supports decentralized applications (DApps), decentralized finance (DeFi) and decentralized exchanges (DEXs), for instance. source

Polygon

Polygon is a stack of protocols designed to fix Ethereum’s scalability issues. The Polygon network addresses the network’s challenges by handling transactions on a separate Ethereum-compatible blockchain.

Polygon then returns transactions to the main Ethereum blockchain post-processing. This approach lowers the network load on Ethereum. In doing so, Polygon can speed up transactions and lower transaction costs to less than a cent.

In other words, Polygon, formerly known as Matic network, provides an easy framework for new and existing blockchain projects to build on Ethereum without scalability issues.

Using Polygon, users can interact with any decentralized application (DApp) without ever having to worry about network congestion.source

Algorand

Algorand is an autonomous, decentralized blockchain network. It offers a wide range of secure, efficient and scalable applications. It was built for the financial future and the world's first pure proof-of-stake (PoS) fundamental blockchain. But what is Algorand used for?

Algorand's technology provides a collection of high-performance layer 1 blockchains that offer security, scalability, privacy and transaction finality. A layer-1 blockchain is a collection of solutions that improve the fundamental protocol to make the system more scalable. The consensus protocol changes, as well as sharding, are the two most prevalent layer-1 options.

Algorand was founded by Silvio Micali, a professor of computer science at the Massachusetts Institute of Technology in 2019. Silvio co-invented many breakthroughs at the heart of modern cryptography, such as verifiable random functions, zero-knowledge proofs and other protocols. Silvio launched Algorand in 2017 with the primary goal of overseeing significant research projects in theory, security and crypto finance.

The Algorand blockchain is managed by the Algorand Foundation and is available to any company or individual that wants to use it. Performance, interoperability and scaling as well as layer-2 smart contracts and private and public models are at the forefront of Algorand's technical innovation development. Additional functionality like payment scalability and off-chain computing can be provided by layer-2 scaling solutions.

Algorand scales to many users and confirms transactions with latency on the order of a minute. Even if some users are malicious and the network is momentarily partitioned, Algorand assures that users will never have contradictory views of confirmed transactions. On the other hand, existing cryptocurrencies allow for temporary forks and require a considerable period to verify transactions with high confidence on the scale of an hour. source

Methods

Tables i used: I use flow.core.fact_transactions and in this table i count distinct tx_id for number of transactions and count distinct proposer for number of active users. I use ethereum.core.fact_transactions and polygon.core.fact_transactions and in these tables i count

distinct tx_hash for number of transactions and count distinct from_address for number of active users. I use algorand.core.fact_transaction and in this table i count distinct tx_id for number of transactions and i count distinct tx_sender for number of active users.

Metrics

• Number of Transactions per Network (Monthly)
• Number of Active Users per Network (Monthly)
• Total Number of Users per Network
• Total Number of Transactions per Network
• Daily & Total New Users per Network
• Users Retention
• Number of NFT Sales per Network (Monthly)
• Number of NFT Buyers per Network (Monthly)
• Total Number of NFT Sales per Network
• Total Number of Buyers per Network
• NFT Buyers Retention

Networks Transactions & Users in Overtime

You definitely know that the Polygon network is one of the most popular networks among users because this network has the ability to perform a large number of transactions with Ficam and that is why this network is very popular among users. The number of transactions of the other 3 networks, i.e. Flow, Ethereum and Algorand, are very close to each other, and the activities of users in these 3 networks are the same.

Unlike the number of transactions, the number of users is slightly different, and although the largest number of transactions is for the polygon network, the largest number of users is not for this network, but for the Ethereum network, and this network has the largest number of users, although sometimes There are exceptions, for example, in November, the number of active users of the Flow network was very close to Ethereum and reached 5.46 million active users, which was unprecedented in the last 6 months.

Networks Transactions & Users Total Stats

In total, the highest number of transactions is for the polygonal network, during this period a total of 571 million transactions have been recorded in this network, which is in the first place by a large margin compared to its competitors, and in the next place is Ethereum, which has a total of 222 million transactions on This network is registered and in the third place is Algorand, in this network users registered 210 million transactions in this network, and at the end is the Flow network, in which users registered a total of 186 million transactions on this network.

In terms of the number of network users, the conditions are slightly different, and the highest number of active users is for the Ethereum network, which has a total of 29 million active users in this network during this period, and after Ethereum, there is a polygonal network, which has a total of 16 million active users and In the third place is Flow, which has 7.6 million active users, and at the end is Algorand, which has 4.2 million active users.

Networks New Users

As you can see, there is a process of attracting new users on a daily basis in all 4 networks, which means that these networks continuously attract new users. During this period, the largest number of new users was attracted to the Ethereum network, which managed to attract 15.4 million new users to its own network during this period, which is a very large number, and in the next place, as you probably guessed, is the polygonal network, which has a total of 13 9 million new users were attracted to this network. In the third place is the Flow network, which during this period was able to attract 5.93 million new users, which is a good number, and at the end is the Algorand network, which is 3. 5 million new users were attracted to this network.

Network Users Retention

In the Flow network, nearly 60% of users made two transactions in less than an hour, that is, 4.62 million users of this network, the difference between their first and second transaction was less than an hour.

Nearly 35% of the users of this network have more than 3 months between their first and second transactions. Nearly 2% of Flow network users, i.e. 144 thousand users, have a month gap between their first and second transaction.

About 65% of the users of the popular Ethereum network, i.e. 18 million users, had a gap of more than 3 months between their first and second transactions, and 15% of the users of this network, who are 4.4 million users, had less than an hour between their first and second transactions. This shows that this network also has active users, and in this network, nearly 4% of users, i.e. 1.7 million users, have a month gap between their first and second transaction.

In the Polygonn network, 39% of users, who are 6.2 million users, spend less than an hour between their first and second transactions, and 35% of users, i.e. 5.6 million users, have more than 3 months between their first and second transactions. In this network, 5% of users have a month between their transaction and their second transaction.

In Algorand, 60% of the users of this network, which are 2.37 million users, have more than 3 months between their first and second transactions in this network, which shows that the users of this network are not very active.

Networks NFT Sales & Buyers in Overtime

Networks NFT Sales & Buyers Total Stats

Networks NFT Buyers Retention

In the Flow network, nearly 36% of users have more than 3 months between their first and second transactions, that is, 36K users of this network. Nearly 30% of the users of this network had less than an hour between their first and second transactions. Nearly 11% of Flow network users, i.e. 11 thousand users, have a month gap between their first and second transaction.

About 36% of the users of the popular Ethereum network, i.e. 306 thousand users, had a gap of more than 3 months between their first and second transactions, and 28% of the users of this network, who are 240 thousand users, had less than an hour between their first and second transactions. This shows that this network also has active users, and in this network, nearly 8% of users, i.e. 83 thousand users, have a month gap between their first and second transaction.

In the Polygon network, 7% of users, who are 83 thousand users, spend less than an hour between their first and second transactions, and 58% of users, i.e. 2.2 million users, have more than 3 months between their first and second transactions. In this network, 5% of users have a month between their transaction and their second transaction.

Thanks for reading

• All data used are from: Flipside Crypto

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• My Twitter: Sepehrmhz8

Conclusion

The most active and loyal users are for the Flow network, because 60% of the users of this network had less than an hour between their first and second transactions, which means that most of the users of this network are active, and the next network that has the most active users is the Polygon network. that 39% of the users of this network had less than an hour between their first and second transaction