On-chain analysis is one of the most powerful tools in web3.
It allows us to dive deep into companies, projects, DAOs, and more to uncover the trends, user activity, financial health, and overall performance of a particular entity.
It gives power back to the people where previously most business data was locked tightly behind private servers.
But times are changing.
In this Deep Dive, the team at Web3 Academy breaks down:
- What on-chain analytics is and what’s wrong with current business reporting
- The main ways on-chain analysis will improve data access
- How we can leverage on-chain analysis to improve our decision-making and investing
Let’s go.
What Is On-Chain Analytics?
On-chain analytics involves analyzing transactions and other data recorded directly onto a blockchain – an open, permissionless, and transparent ledger.
This includes tracking token movement, volume of transactions, and identifying patterns and trends across blockchain use cases.
For example, we can view and analyze any of the on-chain data from OpenSea, such as its monthly fees generated or NFTs sold.
Being able to understand, analyze, and ultimately turn on-chain data for protocols, applications, collections, and companies into valuable insights will be the superpower in the coming decades.
Rather than speculating, it allows you to understand exactly what’s happening in the space to make rational investment decisions.
But before you get too bullish about the benefits of on-chain analytics, just keep in mind that it’s tricky – especially if you’re not a technical person.
That’s why at Web3 Academy, we created PRO to do this analysis for you. We combine our industry insights with on-chain analysis to deliver weekly reports packed with actionable insights about where you should invest and build.
Buckle up. This article will turn you bullish af.
And in case you want a taste of Web3 Academy PRO, we’ll provide all Wealth Mastery readers with an exclusive 7-day free trial!
Hurry though. It’ll expire by end of this week (5th of March) 👉 Get Web3 Academy PRO Trial
The Current State of Business Reporting
In the current state of business reporting, traditional methods such as financial statements and annual reports rely on manual processes and data entry, which can lead to errors, manipulation, and delays.
Other issues include:
- Lack of transparency: Some companies are not transparent in their reporting, which makes it difficult for stakeholders to understand the true financial health of the business. On top of this, private companies, like Twitter, or governments aren’t obligated to report their financial metrics.
- Bias: There is potential for bias in business reporting, either intentionally or unintentionally. For example, a company may be more likely to highlight positive information and downplay negative information in its reports.
- Timeliness: Financial reports may not be published in a timely manner, which can make it difficult for stakeholders to make informed decisions.
- Lack of standardization: There is a lack of standardization in the way that companies report their financial information, which makes it difficult to compare the performance of different businesses.
However, blockchains offer a solution to these issues by providing a tamper-proof…
