"Unlocking Institutional Capital: The Key to Enhancing Blockchain Data Usability"
1min read Improving Blockchain Data Usability: A Key to Unlocking Institutional Capital
Data is the lifeblood of efficient markets, and the digital asset landscape is no exception. While blockchain technology offers unparalleled transparency, the lack of standardization and accessibility in blockchain data presents significant challenges to fundamental and quantitative analysis. This data complexity may contribute to market volatility, deterring institutional capital from entering the crypto space.
The digital asset market, dominated by retail flows, has not yet required a high level of data organization. However, as the market matures and attracts institutional investors, such as pensions, endowments, and insurance companies, the need for improved data usability becomes increasingly apparent.
To enhance data usability, the digital asset space can learn from traditional market approaches. Token value is expected to align with project success, making key performance indicators (KPIs) crucial. While start-up crypto projects may not disclose information like public corporations, interim steps can improve the situation.
Relevant data points for almost all projects include supply schedules, fees, active users, and daily transactions. Each project should strive to disclose as many data points as possible, with detailed definitions, methodologies, and reproducible code. The data should be available with complete histories and easily accessible via APIs.
Systematic dissemination of key information can reduce uncertainty and volatility, aiding capital inflows into the crypto space. Investors should expect this level of transparency and reward projects that prioritize showcasing KPIs. As the crypto market matures in transparency and analytics, the scope for investment should expand significantly.
