Data is a resource for ultimate transparency and decision making
What is data?
Data is a critical resource as has been claimed by OECD. People are collecting facts for decades. At first, it was stories that generations verbally shared with each other. Then, the paper and book age allowed to store knowledge in a written form.
With the introduction of the Internet, people were enabled not only by a more effective way of data collection, but they also gained fast and furious access to data-sharing.
Data has three main characteristics — volume, velocity, and variety.
Owing to the Internet humans are able to create, store, share, change, use and reuse trillions of terabytes of data. Not all of the data is useful, though it can be useful and even critical if combined with other data pieces. The unique characteristic of data produced by the digital world is anti-degradation. The recorded data is stable and it does not have a lifecycle as food products do.
As there is a humongous variety of data sources, the world has a vast space for its exploration, numerous research fields are appearing at the moment. Artificial Intelligence, Internet of Things, Blockchain — all of the latest technological advancements promote the crucial role of data and especially big data analytics in everyday life.
Value creation
Modern business models are taking advantage of digital tools and data analytics that they integrate. The analysis of data proved to be a source of significant insights, both in terms of product creation and business optimization. Multiple fields around the world have already started racing for the best-gained insights to conquer their target audiences faster than competitors.
Data creates value from numerous single data points. Regressions, Decision trees, Mixed models are widely used to predict future events, while descriptive methods help control the current ones.
Data can enable crypto space
The technology behind crypto space, blockchain, is a unique source of data. It is able to store data in a secure way and ensure its safety over time. The data from blockchain live even longer than the Internet one because it is almost impossible to corrupt. In order to build precise predictive models, huge amounts of historical data are needed. Here is the blockchain with its peer networks that store each block with transactions. Not only blockchain stores data, but it also stores the next generation of data — transactions.
Transactions link multiple peers in one dataset. Transactions are able to show interconnections between currencies, public addresses, and token amounts. Control over transactions can generate another layer of trust via the industry actors. Data analysis and control will in turn drive transparency, which will ensure new rules in the field and make it even more secure and fair.
Control over scams and corruption
It is able to conduct extensive data analytics in the crypto space as the majority of blockchain networks are public. The only difficulty lies in the amounts and types of data that make individuals struggle to understand it and, especially, research it. Data analytics, especially no-code tools or close-to-no-code tools such as Covalent, can drive the awareness of the blockchain field to the general public. Moreover, private investors, individual traders, and crypto enthusiasts will have an opportunity to understand what really happens behind the technological curtains.
Data analytics with the help of visualization, as Alpha Alarm does at the moment, will empower multiple crypto projects with insights on the efficiency, trendiness, and readiness of their products and services. Simple non-tech specialists will also gain valuable knowledge on the field. Furthermore, thanks to the generated transparency legal institutions will be able to take control over Scam attacks and other illegal operations.
Data is a crucial source for decision-making.
Every day in the crypto space we make decisions. Investors struggle to understand fair prices for tokens. Projects’ CEOs care about tokenomics design and the economy behind their projects. Community managers try to collect data on effective governance systems. And the common solution for all of them is data.
Let me show you an example of data analytics and visualization that I prepared based on the data retrieved from the Bitcoin blockchain.
As can be seen by the picture above, Data analytics should not always be difficult. Sometimes it is a matter of a couple of Excel formulas that help you deeper analyze the context in order to understand it better. Though, an important thing is how to retrieve data from the blockchain to be able to analyze it?
I frequently search databases in kaggle, though Covalent API is the best solution for scrapping the data from sources that have never been explored before. You have freedom, you have the whole crypto space, and you have the tool to start extensive data analysis and develop the crypto field! Have you already started your data experiments?
To learn more about Covalent, visit the official website
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