The blockchain sector has long emphasized transparency. Every transaction on a public blockchain is permanently documented, accessible to anyone with internet access.
Nonetheless, with billions of transactions and hundreds of millions of wallet addresses, the vastness of that transparency can be overwhelming. Lacking the proper tools, it transforms from a clear ledger to a haystack concealing numerous needles. This is where blockchain analytics steps in.
The latest edition of The Clear Crypto Podcast explores how blockchain’s inherent openness has led to both opportunities and challenges, with artificial intelligence (AI) possibly being the key to making sense of it all.
The role of analytics today
Blockchain data has been instrumental in tracking illicit activities, as seen recently when South Korean officials dismantled an international hacking ring. It also provided vital context during significant industry crashes, like the fall of FTX.
As guest Alex Svanevik, co-founder and CEO of analytics platform Nansen, noted:
“Many people were utilizing our product to track the funds in the FTX wallets, and you could see in real time that despite SBF claiming they had blocked withdrawals, funds were still flowing out of the exchange.”
For traders and institutions, analytics tools fulfill another function.
By labeling wallet addresses and tracing the flow of funds, these platforms enable users to observe capital movement, major player actions, and whether dubious activities might affect token prices.
However, the true challenge lies in usability. “I believe we’re about to undergo a massive shift in how products are designed,” he stated.
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“Users will have grown accustomed to dashboards, needing extensive onboarding and training. I envision a future where software products are more conversational.”
AI changes the equation
Despite advanced dashboards, navigating blockchain data has remained a steep learning curve. Hence, the integration of artificial intelligence marks a significant advancement.
Svanevik emphasized Nansen’s newly launched AI-driven product that allows users to query blockchain activity using plain language.
“The future … involves communicating with AI agents who can conduct research for you, allowing you to obtain an assessment in just 20 seconds instead of spending a whole day collating information.”
This shift is not merely aesthetic or superficial. By reducing entry barriers, AI-enhanced analytics democratize blockchain intelligence.
Retail investors, compliance officers, and even casual users can now access insights previously reserved for specialized analysts.
Blockchain has long promised to enhance financial transparency, but that promise hinges on our ability to interpret the information it generates. As Svanevik remarked:
“We’re essentially investing our entire company on the notion that people will prefer to converse with [the data].”
To listen to the full discussion on The Clear Crypto Podcast, visit Cointelegraph’s Podcasts page, Apple Podcasts or Spotify. Don’t forget to explore Cointelegraph’s complete lineup of other shows!
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