Web 3 Analytics Explored: Challenges, Use Cases & Opportunities
Web3 data analytics is revolutionizing the way businesses understand their processes, products, and services. By leveraging Web3 data, companies can make data-driven decisions and gain deeper insights into their operations.
Data is the new gold in the information age. Web2 provides access to a treasure trove of data, with powerful insights into retention, engagement, and traffic. But this has also given rise to a series of privacy issues since data such as the user's current location, signed-in device, and referral sources are routinely packaged, monetized, and used without the user’s consent.
However, the advent of web3 products and on-chain Web3 promises a paradigm shift. Users can now maintain control over their personal data through anonymization. Simultaneously, businesses can derive powerful insights to enhance their products and services without compromising user privacy.
According to Market Research Future, in 2023, the Web 3.0 blockchain technology sector will be worth more than six trillion dollars, and Web3.0 will continue to grow at a CAGR of 44.6% from 2023 to 2030.
When stepping into this new and rapidly developing era, understanding how to control and leverage business data in these new conditions is critical to gain a competitive advantage in the market.
Harnessing the Power of Web3 Data for Business Success
Web3 analytics can turn raw data into valuable inputs and show metrics such as new user retention, daily/weekly/monthly active users, user engagement, transaction volumes, business KPIs, etc. While Web3 analytics don’t collect personal information, it still allows businesses to understand how users engage with a product or service.
With it, businesses get a more profound understanding of the data emerging from their activities to refine their workflows. For example, Web3 analytics can help developers understand how users reacted to a new feature and how it impacted core metrics such as usage frequency and short/long-term retention.
In the era of Web 3, businesses to stay ahead of the competition will have to overcome completely new obstacles. Having valuable data insights on the market helps them decide on the best course of action to improve efficiency and generate more revenue.
Datrics: Transforming Web3 Challenges into Opportunities
The emergence of Web3 and blockchain technology has reshaped business perceptions of data. This nascent market concept presents developers with new challenges:
Overwhelming On-chain Information with Limited Interpretation Tools:
The blockchain technology landscape is intricate. Unlike established web analytics, there aren't readily available analytical tools. This complexity makes data access challenging. However, Datrics enables data processing from diverse sources and chains.
Difficulty in Accessing Blockchain Data:
As DeFi and the Web3 revolution gain traction, the demand for blockchain data surges. Yet, this data is challenging to retrieve and utilize. Each blockchain has unique standards and specifications, necessitating expertise for node setup and data collection. Datrics offers users enhanced flexibility in data loading and integration into data lakes or warehouses.
Users transacting on the blockchain often have concerns about personal data exposure. It's imperative for blockchain projects to glean insights about web3 product and ecosystem usage without accessing user personal information.
Restricted Access to Web3 Analytics for Non-technical Users:
Data analytics, even in Web2, is intricate. Transforming raw data into actionable insights demands the expertise of data engineers and scientists, coupled with numerous tools. Datrics streamlines and automates the data preparation process, making it visually intuitive. This allows even non-tech users to assess results, make predictions using ML models, and construct dashboards.
Real-world Data and its Influence on Web3 Data:
Blockchains cannot interact with external network information. Without tools bridging on-chain and off-chain data, comprehensive product or service analysis is unattainable. Datrics serves as this bridge, connecting blockchain data with real-world information.
Use Cases for Web 3 Analytics
Web 3 analytics has a number of different applications. We’ve highlighted the most striking and relevant in our opinion today.
Analyzing user traction. With Web3 analytics, businesses can measure active and new users, average revenue per user, retention, and other crucial metrics.
Save on marketing spending. With analytics, you’ll get a more clear view of where users are coming from and how engaged they are.
“Pick out” the top users. Get clear user data that bring the most value and insights on how to attract more like them.
Compare to others. Compare your business to other market players from your category. You will get the number of new and active users, inflow volume, quality of user retention, customer lifetime value, number of transactions and their volumes, liquidity, and more.
Cross-marketing. Competition can lead to unification. What if your ideal users prefer to buy an NFT from a specific marketplace? What about promoting your product there? Leveraging analytics helps to use insights on your competitors to collaborate with them and increase the target audience of all parties involved.
Web 3 Analytics with Datrics
Datrics is a data analytics parters for Web3. We empower blockchain teams with meaningful insights from on-chain and off-chain data. We apply our blockchain and data analytics expertise to deliver bespoke solutions to businesses. Some of our use cases with blockchain:
On-chain and off-chain user and marketing for Near Foundation
The task that the NEAR Foundation set for Datrics was to build end-to-end analytics that could measure the ecosystem's health and key success metrics. The uniqueness of the analytical system developed for NEAR Foundation lies in building a seamless connection between the web activity and its on-chain component.
The entire set of analytics is presented as a series of dashboards that allow custom filtering and provides insights into the success of the NEAR community as both developers and general users.
The set of metrics is widely-used at the company to identify and nurture the most successful projects, select strong product and marketing strategies and prioritize product development.
Yanda, an innovative crypto trading platform, turned to Datrics to automate trading tools and enrich the user experience with data-driven trading signals and analytics. A series of ML solutions were built with Datrics and integrated into the platform to enable quicker, more accurate, and more profitable decision-making about trading strategies based on AI-powered data analysis.
Datrics offers competitively fast implementation, ML infrastructure out of the box, fast preparation date, and scheduling. Therefore, cases can be easily integrated as retrainable pipelines in the matter of days.
The decentralized web, or Web3, has brought about a plethora of tools designed to analyze and gain insights from data generated on this new platform. Here are some of the top Web3 analytics tools highlighted in 2023:
1.Etherscan: A blockchain explorer specifically for the Ethereum blockchain, allowing users to search for information on transactions, addresses, and blocks on the Ethereum network.
2.Crypto Quant: This tool provides insights into blockchain data by analyzing on-chain data and market indicators, making it useful for traders and investors.
3. Covalent: A comprehensive web3 analytics tool that offers a customizable API to query and analyze blockchain data. It supports multiple blockchain networks and provides a wide range of data points.
4. The Graph: This tool allows developers to index and query data from multiple blockchain networks. It offers a decentralized API infrastructure suitable for various blockchain applications. 5.Dune Analytics: A platform that enables users to analyze and visualize blockchain data. It integrates with other web3 tools and platforms, providing a unified platform for data analysis.
6. Nansen: Described as a personal blockchain detective, Nansen allows users to explore and analyze blockchain data, uncovering hidden patterns and tracking the movement of funds.
7. Alethio: A blockchain analytics platform for the Ethereum blockchain, Alethio offers real-time monitoring and comprehensive data analysis tools.
8.Datrics Blockchain Analytics: Datrics empowers blockchain teams with insights from both on-chain and off-chain data. They specialize in providing analytical services for various projects, including L1 and L2 protocols, DEXs, stable coins, DApps, and DAOs. The services encompass predictive modeling, advanced analytics, data visualization, and data scraping. They also offer custom solutions by leveraging their no-code platform for analytics and data science, transforming raw data into actionable insights. Contact us to know more about Datrics Blockchain Analytics today!
These tools play a pivotal role in understanding the decentralized ecosystem, providing valuable insights into decentralized applications and blockchain networks.