Blockchain data, what is it and why does it really matter to the crypto space?
Blockchain data, what is it and who is doing it?
To begin with, you can see something interesting, how you can entertainingly depict on the screen the growth and changes of the crypto price, capitalisation, etc. Because behind this picture a lot of work has been done to collect, analyse and process data from different blockchain projects.
As an example check this super nice visualising data with cryptobubbles.net
Anyway most people are not familiar with such concepts as data science and data analytics. Or they understand the meaning only superficially. Especially when it comes to blockchain data, because a small proportion of the world’s population even knows about cryptocurrencies and blockchain.
Here is some stats by country for 2020:
But even all these people, the “crypto community” are also far from always aware of what is happening behind the screen about that very blockchain data, and for many this may be a big mistake. In the modern world, it is simply necessary to understand, at least at the beginner’s level, these concepts.
After all, let’s see how a person gets into the crypto world? Yes, maybe first he hears about Bitcoin from a neighbour, or rather sees an article about the insane rise or fall of the BTC price. And the very next step will lead him to the world of endless blockchain data. After all, he wants to know the current Bitcoin price and google it, or he wants to look at the price chart. Or to buy crypto. All of these actions will open the door for the crypto beginner to the huge world of blockchain data.
It will most likely this person will go straight to one of the leading quote sites, such as CoinMarketCap. Naturally, such financial sites operate with huge amounts of data, they compare, calculate, verify, record and all this in order to present the final nice picture to the user.
By the way, let’s take a look at how things are in the section of investment sites.
We see that in addition to the largest sites on the classic stock market (which, of course, have also been monitoring cryptocurrencies for a long time), sites that specialises for only crypto (like CMC) are already noticeably growing. Probably, this trend will only develop further.
Of course, we don’t forget that cryptocurrencies are traded 24 hours a day, 7 days a week. This is a super fast market that requires lightning fast action and decisions. Based on accurate predictions and data analytics.
The number of crypto exchanges is already impressive and growing. Even without unaccounted cryptocurrency exchanges, there are already more than 300 of them on the CMC!
Look at this impressive huge list consisting only of cryptoexchanges! And all of them need data providers and analytical power.
In addition, 2020 brought us a boom in Defi projects. This area really generates unthinkable huge data sets for work.
The number of users and the volume of locked tokens are growing. There are more and more swap exchanges like Burgerswap or giant Uniswap.
In general, at the moment we can say that projects working directly with the blockchain data are truly in the blue ocean of business opportunities.
One such project is Covalent. Covalent provides API to bring transparency and visibility to assets across all blockchain networks.
Yes, yes, where do you think all these exchanges, swap pools, sites with charts will take data from? Who will help them analyse and process these arrays? All of them will go to the guys from the companies like Covalent.
Such projects are truly the core of this entire huge growing industry, and they have a lot of difficult and important work ahead of them, in that blue ocean of blockchain data…
