Ethereum ranked first in China’s new blockchain index

Ethereum is the top public blockchain in the cryptocurrency space, while bitcoin, the original virtual currency, is ranked 13th, according to the Chinese government’s first monthly Global Public Chain Assessment Index released on Thursday. Following Ehtereum in the top five spot were Steem, Lisk, Neo and Komodo. All of these top-five blockchain networks make efficient use of smart contracts while processing all the information in a decentralized manner.

The index was created and released by the China Center for Information Industry Development (CCID), part of the Ministry of Industry and Information Technology in Beijing. It evaluates the technological capability, usefulness of the application, and innovativeness of the project.

The CCID said the index is based on three criteria, technology, application, and innovation, but didn’t publish its methodology.

The CCID announced the initiative last week, citing the lack of an independent analysis of crypto and blockchain as a guide for governments, enterprises, and research institutes around the world. Financial ratings agencies like Weiss in the US have previously published crypto ratings, but those are more focused on trading.

China’s government has made it clear that it’s no fan of cryptocurrency because of the financial instability that comes with it, but it has welcomed the development of the underlying blockchain technology. Authorities in China banned domestic initial coin offerings (ICOs) and crypto trading in September, and subsequently cracked down on crypto mining. In the meantime, China’s central bank is among the world’s first to look into sovereign cryptocurrencies, and the nation’s tech giants are now mulling using blockchain tech in areas from supply chains to gaming. Last year, more than half of the world’s blockchain-related patent applications came from China.

Eric Zhao, a Shanghai-based engineer at the Chinese Academy of Sciences who operates the widely followed CNLedger Twitter account, said he won’t take the official crypto ratings very seriously because “most old-school experts haven’t followed the crypto space long enough to grasp some of the traits of [the] tech and community that can’t be found elsewhere.”

He added, “I believe at least it’s a sign that the officials are starting to treat crypto projects more like a neutral endeavour towards better technology and innovations, rather than just challenging the power and authority of banks and government.”

The cryptocurrency community has expressed discontent over China’s rankings and their methods as it keeps Bitcoin at the number 13 position in line with the other privacy-focused coins like Verge. The fact that Bitcoin, being the oldest and still the most dominant and secure cryptocurrency in the global market, failed to hit top 10, also dissatisfied token’s enthusiasts.

A majority of the analysts say, that the Chinese government in its public blockchain rankings has prioritized next-generation blockchain network by overlooking the long track record, computing power, hashrate, and overall difficulty of major blockchain networks like Bitcoin.

Just like the Bitcoin, the crypto community has also expressed discontent with the ranking of Ripple and Litecoin, which has been placed at the 17th and the 21st position respectively.