Introduction to FLOW blockchain

Flow is a user-friendly, decentralized, and, scalable Blockchain designed to support the creation of crypto-related games, digital assets, and applications that power them. Flow ensures scalability without sharding which makes it possible to keep transactions atomic, consistent, isolated, and durable (ACID).

Developed in 2018 by dapper labs, the Flow was licensed for use in 2020 for developers interested in creating and trading NFT. It gives the power to control data to the consumers, and it also gives the liberty to create any digital asset that can be traded anywhere in the world. Flow is an open-source Blockchain with its smart contract, which can be used by billions of people to power their applications.

Working of FLOW blockchain

Flow uses the multi-approach model to operate. This model is grouped into four pillars.

• Multi-role architecture
• Resource-oriented programming
• Developer ergonomics
• Consumer onboarding

Methodology

Users Retention

User Retention refers to the ability of a blockchain to retain its users over some specified period. High user retention means blockchain users tend to return to, continue to use or in some other way not defect to another blockchain or to non-use entirely. Knowing blockchain retention rates can tell blockchains where are they falling short, which features keep users coming back, how loyal users are, and if blockchains are on track with meeting users needs and expectations.

There are two major compartment in this dashboard :

• Blockchains User Retention (transactions based)
• Blockchains NFT Purchases Retention

In this dashboard, I have analyzed on FLOW, Ethereum, Solana, Avalanche, Cosmos chains. For the user retention, I have taken the data from respective blockchain core.fact_transactions tables. All the data are taken from the timestamp beginning at 2022-01-01. While for the NFT purchases retention, I have taken the data from respective blockchains core.ez_nft_sales . I have also analyzed on the new vs old users activity on-chain for each of the blockchains. To better portraits the stickiness of regular users on respective chains.

Users’ Retention

Monthly Active Users

🔍 | Findings

FLOW

• Majority of the users on FLOW are likely to perform their subsequent transactions within a day.
• A percentage of 91.6% and a total amount of 218 Million.
• While the rest of the time period having amount range between 1.1 Million to 9.1 Million.
• Less than 5%.

Ethereum

• Ethereum having a much better distribution in terms of retention period.
• Majority of the users still performing their subsequent transactions within a day.
• With a percentage of 57.9%
• While within a week and more than a quarter followed next with percentage of 15.3% and 12.7% respectively.
• The percentage decreases as the retention period decreases.

Solana

• Majority of the users on Solana are likely to perform their subsequent transactions within a day.
• A percentage of 94.9% and a total amount of 228 Million.
• While the rest of the time period having amount range between 600k to 6.9 Million.
• Less than 3%.
• Pretty similar trend as in FLOW blockchain.

Avalanche

• Majority of the users on Avalanche are likely to perform their subsequent transactions within a day.
• A percentage of 76.6% and a total amount of 117 Million.
• While the rest of the time period having amount range between 2.9 Million to 19.8 Million.
• Within A week retention period are having 12.9%.
• While the rest having less than 4%.

Cosmos

• Majority of the users on FLOW are likely to perform their subsequent transactions within a day.
• A percentage of 60.8% and a total amount of 11.32 Million.
• While the rest of the time period having amount range between 343k to 3.14 Million.
• The retention period for more than a quarter with a percentage of 16.9%.
• Followed by within a week with 8% and within 3 months with close percentage to previous category (7.21%).

🔍 | Findings

• Ethereum having more active users among all the blockchains chosen for analysis.
• While Solana and Flow having intertwine in terms of getting the second place over the last couple of months.
• Avalanche and Cosmos is having a gap between the three chains mentioned above.
• There is no consistent active users on FLOW, indeed a higher volatility in terms of active users on the chain as compared to others.
• Solana is suffering a decline in active users.

Daily New vs Old users

🔍 | Findings

• A very high fluctuation in FLOW between new vs existing users.
• There are days having 90% more of old users, whereas there are also days having 90% more new users.
• Is there any increase of existing users on FLOW? No, I would say pretty constant.
• Ethereum having old vs existing users at 3:7 ratio. 70% existing users; 30% new users.
• Pretty consistent existing users amount on Ethereum.
• An increase of new users in Avalanche chain and making the ratio to 2:8. 80% existing users while 20% new users.
• While Cosmos having a ratio of 1:9. 10% new users, 90% existing users.
• A decrease in new users ratio in Cosmos due to decrease in new users amount instead of increase of existing users.
• Lastly, on Solana the ratio is at 1:9 as well. 10% new users and 90% existing users.
• A decrease in existing users since May 2022. Probably affected by both Terra and FTX incidents.

Statistical Analysis on Users’ Transactions

🔍 | Findings

• the median and minimum transactions are mostly similar among those chains.

• While maximum transactions in Ethereum is highest among all.

• While average transactions differ among all chains.

• FLOW having highest percentage in 1 transaction per user. So does Ethereum chain which having most percentage on 1 transactions but with lower percentage.

• While the rest having 2 to 10 transactions as the majority.

• The rest transaction volume is not significant.

NFT Purchases

🔍 | Findings

• Ethereum out numbered the other chains in every aspect of statistical NFT purchases.
• FLOW is the smallest among all 3 chains.
• Solana is the moderate among 3.

🔍 | Findings

• An obvious decline on overall NFT purchases among FLOW, Ethereum and Solana.

• FLOW has a more significant decline.

• While Solana and Ethereum still wont go down without a struggle. There are months where we seen a slight rise on NFT purchases on Ethereum and Solana.

• Ethereum has got the most market share.

• Flow is the smallest among all 3.

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🔍 | Findings

• Ethereum having pretty even distribution in NFT Purchases Retention.
• 12.8% within a month; 25.4% more than a month; 16% within a week; 8.9% within 2 weeks; 21.4% within a day and 15.6% within 3 months.
• While pretty similar for FLOW NFT Purchases Retention as well.
• 11.2% within a month; 23% more than a month; 18.2% within a week; 8.3% within 2 weeks; 25.2% within a day and 14% within 3 months.
• Solana having more NFT purchases within a day.
• With a percentage of 50%.
• 5.7% within a month; 23.88% more than a month; 4.26% within a week; 3.54% within 2 weeks; 50.47% within a day and 12.14% within 3 months.

🔍 | Findings

How frequent users purchasing the NFT on each chains.

There are differences in percentage on each NFT purchases frequency.

However, there are similar in terms of top 3 frequencies.

• 1 Purchase

• 2-5 Purchases

• 5-10 Purchases

• The greater the NFT purchases amount, the lower the nft buyers.

Summary

• FLOW chain having health amount of sticky users. A consistent I would say.
• However, there will be a surge sometimes in new users diluting the existing vs new users ratio.
• Most of them love to transact their subsequent transactions within a day.
• While on NFT Purchases side, Flow is losing out the competition as compared to Solana and Ethereum.
• However, the overall trend is almost the same for the NFT purchases frequency and NFT purchases retention.

Appendix

Author : 𝐑α𝔪αʰαʳ#4167

Date of analysis : 19th - 20th December 2022

Source of data : Flipside Crypto