What is blockchain? The 'block' is a record of transactions, and the 'chain' is the series of linked blocks in the network. Blockchain records are secure, time-stamped and irreversible.
Simply put, it is a fool-proof method for recording information in the form of transactions. Think of it as a digital ledger distributed across many computers that run the network. The purpose of a blockchain is to record transactions and track ownership of assets (physical or virtual). There are several types of blockchains, such as:
- Public blockchains like Bitcoin or Ethereum
- Private blockchains that are controlled by a single entity
- L1 blockchains built on base blockchains like BNB Smart Chain, or Ethereum
- L2 blockchains which improve transaction times and work in conjunction with a L1 blockchain to finalize transactions
Promising areas where businesses have started using blockchain are:
- For payments and money transfers
- To monitor supply chains
- For secure data sharing
- For copyrights and royalties
- For specific use cases such as healthcare and the Internet of Things
The Uses of Blockchain Analysis
Blockchain data can be inspected, identified, clustered, and visually represented. This process is referred to as blockchain analysis. It provides data and insights about blockchain users. Here are some use cases:
- Fraud: A blockchain analyst can conduct an audit trail of blockchain records for an asset. This trail checks digital transactions to ensure that everything is on board. It can expose and prevent fraud and misrepresentation.
- Compliance: The blockchain audit trail reveals procedures, tasks, and shared documents. In this way, blockchain analysis checks for compliance and due diligence.
- Marketing: Blockchain analytics tools reveal user insights. With these insights, companies formulate strategies to target consumers. In Web3, users have control over their data. Blockchain analysis is one way to understand their preferences.
- Trading: Blockchain analytics tools uncover trading activity, price changes and market sentiment when it comes to cryptocurrency and digital assets. This on-chain analysis is a guide to volatility, timing, and future opportunities.
Top Blockchain Analytics Tools
Blaze is a cutting-edge Web3 community CRM and analytics tool. It connects web2 user data from Discord, Twitter and other platforms to web3 user data, such as blockchain transactions, so that businesses can improve community management and marketing strategies.
Government agencies and private enterprises use Chainalysis to track blockchain activity. It helps them manage risks and spot opportunities.
Nansen combines on-chain data with wallet labels and tags. This tool lets enterprises conduct due diligence and make informed decisions regarding investing.
Dune Analytics is a blockchain analytics tool designed for crypto analysts and investors. It analyzes and provides a platform to source records from public blockchains for clients to fine-tune portfolios.
Flipsyde Crypto specializes in community-enabled crypto analytics. Users share data insights and earn “bounties” for information.
Enterprises use TRM Labs for risk management purposes. The tool can check for compliance and also monitor and investigate crypto fraud.
Anchain promises AI-powered digital tools for security, risk and compliance. It monitors transactions and predicts threats.
If you are a marketing manager, growth lead, or community manager for Discord or Twitter and are looking for a comprehensive solution to better understand and grow your Web3 community, then worry no further. At Blaze, we are committed to making it easy to access on-chain analytics for growth. Contact us for a free demo, and discover more about the benefits of next-gen analytics tools.