This guide offers a comprehensive analysis of top companies that are taking benefit of blockchain analytics in their scope of work.
The popularity of blockchain technology has witnessed profound levels of up and down over the years. Since 2019, blockchain has become one of the most critical priorities for organizations all over the world. The world has changed quite radically with the arrival of blockchain, especially with the digital transformation of the economy, business structures, and governance models.
Furthermore, governments and central banking institutions are considering the adoption of blockchain, the very thing that disrupts their chain of command. Although blockchain is so beneficial in terms of security and transparency, it is still vulnerable. So, the top blockchain analytics companies come to the rescue for enterprises that are navigating the blockchain for the first time.
Now, you would be wondering about the need for blockchain analytics. The following discussion dives into an understanding of blockchain analytics with an outline of the top companies in blockchain analytics. In addition, the discussion will also reflect on the scope of blockchain analytics in the future.
The Growing Recognition for Blockchain
The world has witnessed some of the best blockchain analytics companies making news in recent times. In most cases, the transition towards practical blockchain applications is finding a more real-world perspective rather than the ideal perception of blockchain. Blockchain has found applications in various practical use cases like tracking food, airline engine parts, and prescription medicines.
As business executives perceive multiple blockchain business scenarios that help them achieve desired objectives, blockchain finds more recognition. In 2021, blockchain enterprises have to work on leveraging technical capabilities with blockchain. This is where you would have to turn attention towards blockchain analytics.
Where Does Blockchain Analytics Come from?
In order to learn more about top blockchain analytics companies in 2021, you must know about blockchain analytics. Blockchain has promising potential in the field of analytics. Many enterprises have leveraged data analytics successfully for various applications over the years. Forbes had stated that the adoption of data analytics in enterprises reached 59% in 2018. With the subsequent evolutions in the approaches to blockchain analytics, we have reached the era of predictive analytics.
It ensures predictions on the basis of large volumes of historical data alongside machine learning techniques. Such a type of technology can help enterprises in forecasting trends and behaviors. However, predictive analytics right now is not exactly how everyone imagined it to be. It still has to deal with the setbacks of collecting quality data from various sources and correlate them.
The Opportunities for Blockchain Analytics
Blockchain can serve the gap for predictive analytics with its profoundly massive computing power. The multiple connected computers in the blockchain network determine the computational power of blockchain. Therefore, blockchain can help in the proper definition of the model for analysis, with the reference of innumerable datasets. Data science deals with analyzing data for extracting useful insights and is quite powerful. With the combination of blockchain and data science, top blockchain analytics companies can provide considerable value to their clients.
Blockchain can basically improve the data collected for analytics, thereby improving the outcomes. Furthermore, the faster transfer of data with blockchain can provide improved data analytics efficiency. At the same time, blockchain can also provide the assurance of data integrity. Enterprises and users could easily identify the integrity of data generated for analytics purposes. In addition, the following capabilities of blockchain can also support predictive analytics.
- Effective audit trails
- Immutable entries
- Consensus-based timestamping
The applications of blockchain analytics could also open new opportunities for best blockchain analytics companies. The combination of blockchain and big data will slowly find recognition in the field of healthcare. Healthcare providers could use blockchain analytics based on flexible record sharing with patients, physicians, employers, insurance providers, and other agencies. The process of data transfer among different parties is easier and secure with a blockchain-based solution. Subsequently, access to real-time data can help the health industry get following benefits,
- Standardized medical data reporting formats
- Improved patient follow-up among various healthcare providers
- Cryptographically secured patient history
- Immutable medical record and history without any concerns of tampering
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Best Blockchain Analytics Companies
The value offered by blockchain analytics in the present business environment is quite clear. Some of the top blockchain analytics companies are trying to develop new insights from raw blockchain data. Blockchain analytics can help in receiving real-time notifications about high-risk activities.
In addition, analytics can help in reviewing transaction graphs to find out more about transaction patterns, trends, and activity. Blockchain analytics companies could help in analysis of transactions on public blockchain through conventional strategies for data analytics. Here are the top 5 most popular blockchain analytics companies you should look out for in 2021.
The top contender in the list of popular blockchain analytics companies, Chainalysis dominates the blockchain analytics space. It is presently the leading provider of blockchain and cryptocurrency data analytics along with solutions for monitoring transactions. Chainalysis offers blockchain data alongside analytics insights for government firms, financial institutions, and exchanges throughout 40 different countries. The company claimed to have raised $13 million for expanding its Series B round and reaching almost $49 million in July 2020.
The work of Chainalysis as one of the top blockchain analytics companies in 2021 is evident in the Chainalysis Reactor. It is basically the blockchain data and investigative solution for obtaining insights. It helps in finding out the reasons and practices followed by people for transferring funds throughout the world across public blockchains. Chainalysis Kryptos and Chainalysis KYT or Know Your Transaction, the two compliance solutions, have found applications in more than 180 countries worldwide.
The name of CipherTrace also deserves a place among best blockchain analytics companies. It is unique in its attention to safeguarding financial firms against crypto-related threats and risks of laundering virtual assets. Blockchain analytics solution with CipherTrace helps in de-anonymization of cash flow.
It collects multiple data points weekly and implements machine learning in its massive data pool for tracking cash flows. It can help in finding out whether the funds go to legal entities or for criminal activities. Although the CipherTrace team started tracking discrepancies in the crypto space in 2011, they came up with a blockchain intelligence API product in 2015.
CipherTrace offers solutions for blockchain threat intelligence, crypto anti-money laundering, and crypto forensics. Large banks, exchanges, crypto firms, and regulators use CipherTrace for tracing the flow of transactions on public blockchains. Additionally, it also helps in ensuring compliance with regulatory provisions for AML practices. The initial funding for CipherTrace from DARPA and the US Department of Homeland Security Science and Technology shows a lot about the capability of CipherTrace as one of the top blockchain analytics companies.
3. Coin Metrics
Another promising addition among the most popular blockchain analytics companies in recent times is Coin Metrics. Coin Metrics presents the biggest feed for aggregate on-chain data to support basic analysis & trading. Aleksei Nokhrin and Nic Carter established the foundation of Coin Metrics in 2017. The primary design of Coin Metrics intended it as an open-source blockchain project for network data monitoring and analytics.
Coin Metrics offers transparent and highly actionable data for different industry stakeholders such as financial enterprises, media & research outlets, as well as funds. The data of Coin Metrics helps users in developing value and achieve better engagement with blockchain-based assets. It is also quite helpful for understanding economic and operational activity on public blockchains.
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Any list of the top blockchain analytics companies in 2021 would be incomplete without Elliptic. It is a top analytics company in the domain of crypto-asset risk management. Suitable for financial institutions and blockchain firms all over the world, Elliptic also holds recognition as a World Economic Forum Technology Pioneer. The platform has successfully evaluated risk on transactions measuring in worth up to some several trillion dollars. Most importantly, it has helped in uncovering many instances of fraud, terrorist fundraising, financial crimes, and money laundering.
Elliptic works by drawing data from the public as well as privately-accessed sources of information. As a result, it can help in identifying real-world identities on blockchain networks. The integration of identity information of Elliptic with the core graph data engine can offer significant insights for compliance decisions. Elliptical, the analytics solution, recently tracked Bitcoin transactions relate to a recent hack in Twitter.
The final addition among the top 5 best blockchain analytics companies has its headquarters in New York. Elementus offers an enterprise blockchain analytics platform for credible insights into blockchain data. It is suitable for government agencies, institutional asset managers, and financial service companies.
Elementus has been successful in achieving global recognition through presentation of significant data for covering QuadrigaCx insolvency and Cryptopia hack. It found highlights in top financial media journals such as Fortune, Wall Street Journal, and Bloomberg. The blockchain index methodology of Elementus is just like the web crawler and index methodology of Google. Recently, it has been successful in raising a seed round of $3.5 million.
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Notable Benefits of Blockchain Analytics
The final aspect you need to understand before taking a look at the top blockchain analytics companies in 2021 is the practical approach. It is different from other analytics technologies. Blockchain helps in bringing end-users, analysts, developers, and data owners on a single platform, thereby resulting in new challenges.
Blockchain analytics is a relatively common service requirement, thereby prompting the rise of most popular blockchain analytics companies. Blockchain analytics has been significantly helpful in tracking, collecting, and analyzing information about cryptocurrency payments on blockchain. However, blockchain analytics and its potential for transforming data science come under scrutiny for certain reasons. Well, you have been thinking about blockchain because it provides anonymity. On the other hand, blockchain analytics implies the de-anonymization of the identities of participants on the blockchain network.
The work of blockchain analytics primarily involves tracking the identity of wallet addresses and participants. Governments and crypto exchanges are already utilizing the services of best blockchain analytics companies for leveraging the benefits evident with blockchain analytics. On the contrary, it is also important to understand how blockchain analytics dives into personal identity.
It basically takes away a significant aspect associated with the identity of blockchain, i.e., anonymity. However, blockchain analytics is not a tool for breaking down anonymity on blockchain networks and systems. It has the capability of delivering various advantages and is definitely the future of blockchain adoption.
Let us take a look at the notable benefits of blockchain analytics which you can consider right now.
- Safeguarding data integrity
- Comprehensive control over data
- Assurance of data security
- Faster audits
- Seamless access to data through different data exchanges
- No more intermediaries
- New approaches for data monetization
The different blockchain analytics companies have a lot to contribute to the development of blockchain infrastructures worldwide. The top blockchain analytics companies are constantly striving to make a mark in the comparatively new domain. Furthermore, the investments in blockchain analytics would continue to increase substantially in the future.
Most important of all, the future of blockchain analytics might rely on formidable improvements in tools and technologies. Subsequently, the demand for trained blockchain professionals would increase for helping enterprises derive and utilize insights from blockchain data. If you want to learn more about the field of blockchain analytics, then you can explore vital career opportunities as an enterprise blockchain professional now!
*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. Do your own research and make sure you read our full Disclaimer.