Blockchain Analytics and its Use Cases

The increasing use of blockchain-based systems and adoption in several industries like finance, healthcare, and supply chain, has caused an uproar in blockchain data interpretation making it difficult to analyze, model and investigate big data hence, the need for blockchain analytics.

In this article, we discussed blockchain analytics and its used cases

Table of Content

1. What is Blockchain Analytics
2. Blockchain analytics Used Cases
3. Types of blockchain analytics tools
4. Why you need to learn blockchain analytics
5. Summary

What is Blockchain Analytics?

Blockchain analytics according to Originstamp, is the process of analyzing, identifying, and ‘clustering’ data on the blockchain, which is a public cryptographic distributed ledger. To identify key information about users and transactions, blockchain analytics models and visually represents data.

Information such as market analysis, blockchain activities, compliance implementation, cyber-crime tracking, etc are few functions of blockchain analytics tools.

These tools helps individuals and organizations to take meaningful and actionable insights from raw data on the blockchain and make conclusions about the information they contain.

In a nutshell, blockchain analytics is the process of collecting, identifying, interpreting, analysing, and visualising data on the blockchain.

Understanding blockchain data is a very serious business and it gets more interesting with interpreting these data which is why a lot of people have their hands on many blockchain analytic tools.

Top 5 Use Cases for Blockchain Analytics

Blockchain analytics is not limited to a particular set of people. In fact, it is made for everyone and anyone who seeks information related to data on the blockchain.

Here are the Top 5 Use Cases for Blockchain Analytics

• Crypto Investors and Traders can use several blockchain analytics tools to track whale wallets, identify what cryptocurrencies these wallet owners are buying and make informed decisions about whether to buy or sell as well. It also helps investors to research and identify market trends.
• Blockchain data is resistant to modification and this makes it reliable in due diligence processes hence, regulators can use it to monitor and regulate blockchain-based businesses and transactions, to ensure compliance with laws and regulations.
• Government agencies and law enforcement can use blockchain analytics to investigate and track cyber security activities, such as money laundering, fraud, and terrorism financing, on blockchain networks.
• Companies in various industries can use blockchain analytics to gain insights into blockchain transactions of their partners, competitors and suppliers, to improve their supply chain management, and financial management and to identify frauds.
• With the increasing rate of global blockchain adoption, blockchain analytics grants researchers the ability to conduct research on blockchain networks and transactions, to gain insights into the usage and impact of blockchain technology.

Blockchain technology is an increasingly advanced innovation and its increase in mass adoption has led to the discovery of tools that could make its use, even more, accessible, leading to various individuals and organizations coming up to proffer solutions to this effect hence, the many types of blockchain analytics tools.

Types of Blockchain Analytics Tools

There are so many blockchain analytics tools but for this article, we shall consider just 5 of these analytics with their amazing features. Thus:

There are many blockchain analytics and visualization tools available, however, we shall be considering the top 5 most rated blockchain analytics and visualization tools in the industry. Hence,

1. Chainalysis

Chainalysis is a leading provider of blockchain analytics for cryptocurrency investigation and compliance. It offers a range of solutions for government agencies, exchanges and financial institutions, giving them the confidence and knowledge they need to develop clearer regulations, establish standard audit practices and implement powerful compliance controls for cryptocurrency to sustain its current growth and integrate into the global financial infrastructure.

2. Dune

Dune is an excellent blockchain research tool. Dune provides you with all the tools you need to query, extract, and display massive volumes of blockchain data. Dune is democratizing public blockchain data by making it available to anybody.

3. DappLooker

DappLooker is a multi-chain community-driven analytics and visualization platform that allows users to make better investment and research decisions using on-chain and off-chain data for blockchain networks and Dapps. With Dapp Looker, Charts and dashboards can easily be forked, edited, and shared with the community, while allowing users to run SQL queries on blockchain data.

They aim to empower everyone to easily understand blockchain data, do analytics, and build beautiful charts and dashboards. You can build and share key metrics for Defi, NFT, gaming, and multi-chain protocols

4. NANSEN

This is another blockchain analytics tool that integrates on-chain data with a vast database of over 240 million labelled wallets and their activities, so you can get real-time Crypto, Defi & NFT insights. Crypto investors use Nansen to discover opportunities, perform due diligence and defend their portfolios with real-time dashboards and alerts.

5. PARSIQ

Parsiq is a full-featured data network solution that aids in the development of backends for all Web3 apps and protocols. It allows users to easily get historical, real-time, raw data from the blockchains. All information is processed within milliseconds no matter what your request is.

PARSIQ is redefining what it means to quickly & easily access Web3 data.

These are some of the most popular blockchain analytics and visualization tools however, it is worth noting that there are many others available, each with its own unique features and capabilities. It’s important to evaluate the different options and choose the one that best meets your needs and budget.

Importance of Blockchain Analytics

1. Blockchain analytics tools allow you to analyze a massive amount of blockchain data and draw meaningful conclusions and insights from big data.
2. Blockchain analytics tools translate massive data into a straightforward storytelling dashboard by bringing data to life in an engaging visual display making it easier for everyone to make sense of complex information.
3. Blockchain analytics better understand customers, competitors and users of specific projects. Displaying the why, and reasons for specific action.
4. Blockchain analytics tools also introduce us to the many potentials of Artificial Intelligence (AI) and machine learning. These help your project collaborators and company understand past performance, make predictions about the future based on that knowledge, and plan proactively.
5. Above all, These analytic tools make your blockchain experience smooth and easy.

Summary

In a world where data is paramount to security, business intelligence and more, the usefulness of blockchain analytics can not be overemphasized.

In this article, we have discussed blockchain analytics as the process of collecting, identifying, interpreting, analysing, and visualising data on the blockchain.

We also identified its major used cases as it affects the global human economy, some blockchain analytics tools, what makes them unique and the importance of blockchain analytics.

Finally, we have concluded that blockchain analytics is necessary in the evolving world of blockchain technology and reliable data research.

Have you ever made use of any blockchain analytics tools? Which of them? Kindly drop them in the comment section.