Hi Everyone, As a part of Week 1 of Covalent’s Data Alchemist Bootcamp, I have chosen to do my analysis on two L2 networks - Boba Network and Nervos’s Godwoken Network. Here’s what I found.

Nervos Godwoken is a layer-2 solution built upon the Nervos Layer 1 network. They offer high scalability of transactions through low gas costs and flexible wallet support. They are a EVM compatible network.

Boba on the other hand is a layer-2 scaling solution that is getting increasing popular due to its extremely low gas fees and fast transaction executions. Boba also has a hybrid compute technology built into it that enables it to be used for calling web2 APIs for executing complex algorithms, etc which was not possible before.

The RRR Framework lets you analyse any business with three key metrics - Reach, Retention and Revenue. Increment, the tool provided by Covalent is built natively on this framework. So, our analysis will involve comparison between the two protocols via this Framework.

Here, we can see that the active address on the network has been steady indicating that the product might have good product market fit. Active addresses provide us with a way to track user base growth.

Now, tracking the active addresses on the Nervos Godwoken chain, we have:

From this, we can see that the Nervos network has more active address growth when compared to Boba, probably due to the fact that the Nervos ecosystem is growing rapidly when compared to Boba.

This shows the number of smart contracts deployed on the Boba Network. From the graph, we can see that the number of smart contracts have been decreasing which is a bad sign, as it means that the developer activity on the chain is decreasing.

Now, for the Nervos Godwoken chain, we can see:

Since, Nervos Godwoken chain is a pretty new chain, we only have the data for the past 6 months.

This is also an important metric as transaction volume indicates whether or not the project / protocol has any activity. Low transaction volume indicates that the product needs more changes to attain product market fit.

Boba Network seems to have reached its peak transaction volume on April 2022 reaching around 106k transactions.

Nervos Godwoken chain seems to have reached the highest volume on Sep 2022 with around 70k transactions.

New address growth shows us the number of new addresses that started using the protocol.

From the graph, we can see that new address growth was maximum on April 2022 with 2880 new addresses.

Moving onto the second metric of the RRR Analysis, retention tells us about the health of the project ans how good of a product market fir the project has.

Stickiness ratio of Boba network vs Nervos Godwoken chain

Both the protocols seem to have a good stickiness ratio indicating that the protocol is sticky, and does not lose its users easily.

This tells us out of all transactions that are happening on the protocol - how many of them are by the existing users.

The third metric of the RRR Analysis is Revenue which tells us about how much money the protocol makes and whether the protocol is able to monetize on its user base.

Generally, blockchain protocols make revenue based on the gas fees. Comparing the revenue earned from gas costs, we have.

This graph shows the comparison of total gas costs between the two protocols.

Here we can see that the total gas costs have been decreasing which corresponds to the active addresses in the protocol that we saw in the first reach chart.

This indicates about the gas price of the network and the variation of gas fees over time per transaction.