1、Fundamental Value in CryptoFundamental Value in Crypto Part II:Valuing Smart Contract PlatformsGrayscale Insights|January 2Fundamental Value in Crypto|2023 Grayscale Investments,LLCPlease review important disclosures&other information at the end of this paperINTRODUCTIONSmart contract platforms(SCPs

2、)like Ethereum(ETH)are often referred to as distributed computers,whereas payment cryptocurrencies like Bitcoin discussed in part one of our series are simpler distributed ledgers.In this piece,well break down the unique characteristics of smart contract platforms,discuss how their native tokens var

3、y from traditional payment cryptocurrencies like Bitcoin,and propose a valuation framework by examining supply and demand factors.What is a smart contract platform?“The big difference between Ethereum and Bitcoin is that Bitcoin is a platform where the value of the ecosystem comes from the value of

4、the currency,but in Ethereum the value of the currency comes from the value of the ecosystem.”Vitalik Buterin While payment blockchains like Bitcoin excel at tracking token transfers between addresses,smart contract platforms like Ethereum also allow transactions to store,retrieve,and calculate upon

5、 arbitrary pieces of data.Smart contract platforms allow developers to write code called smart contracts to compute operations on-chain.In doing so,they allow developers to create decentralized applications(dApps)which can automate processes that have traditionally required human intermediaries.For

6、example,instead of having to go through a weeks-long process at a traditional bank to take out a loan,smart contracts have allowed users to instantly deposit collateral and borrow assets in seconds without human intermediaries.The benefits from using smart contracts are broad:by frictionlessly inter