Blockchains: A Data Scientist’s Dream

Transcript

all right good afternoon everyone so we are from nansen and ananson is basically a data analytics company that surfaces the signal from blockchain data and i am elizabeth i'm a senior research analyst in the attribution team at nunsen and what the attribution team does is that we are basically in charge of the labels that you see at nunsen and i'm also here with daniel cool who is a research analyst at london alpha and afterwards i'll let him introduce himself a little bit more yeah so as previously mentioned at nunsen we surfaced the signal in blockchain data and some of you may know nansen and some of you may not so just a brief introduction um

yes so we have dashboards and these dashboards allow people to analyze billions of on-chain data points millions of wallet labels and also thousands of entities across 10 different blockchains so this is a brief introduction i'll talk more about nunsen later but before that i want to talk more about data and on-chain data so many so sorry so we know that on-chain data is a proven source of alpha for crypto investors and it may seem counterintuitive at first because one of the huge benefits of blockchains is that data is free open and transparent so where is the alpha if everything is

transparent for everyone to see right and the alpha lies in the observations that one can make from successfully navigating the complexity of on-chain data because if any of you have tried to work with nodes and dealing with raw on chain data you would know that it is immensely difficult to deal with it in its raw form and so the alpha allies in revealing patterns that would not be apparent or obvious to other observers so blockchain data is a massive mine of information but we need to know what we're looking for and how to look for it so what are the challenges with on-chain data there are two main challenges analytics is impractical and also

wallets are unknown so i believe many of you have tried to investigate an address on uh blockchain explorer like etherscan and if it is an address with like a hundred thousand transactions then good luck it is uh very complex to analyze transaction by transaction and if it's like maybe a thousand transactions perhaps we could click through and analyze the data on our own and but after a few hours uh we might end up with like 50 tabs and then we are still confused about what the relationships are between the addresses so past a certain point uh blockchain data can become too complex for our brains to process directly so this is where we can

help at nunsen we structure aggregate and enrich on-chain data across 10 different chains and structure so blockchain data is net has natural structures if you think about it we have contracts like erc 20s erc 1155s and erc721s so we know what we can expect for example from erc20 we know that it has a name symbol and maybe supply decimals right so these can be structured in a certain way and what more can we do contract standards so there are even other contracts like multisig contracts proxy contracts they all have a certain structure to it

and we can even do more so if you think about liquidity pools there are what happens on liquidity pools you can have trades so there will be makers takers the amount and also the token that is being transacted so these are the structures that are inherent in blockchain data and aggregation so what so we try to optimize data by aggregation and how how do we aggregate this depends on the questions that we ask from the data so i think we are all curious people in crypto right we ask questions about um what's happening on chain et cetera so for example if you want to ask what's the most

popular address in ethereum so that's more of a qualitative question then we want to define it quantitatively what is popular is it by transaction count by volume and then we try to define the question clearly and then we then we can question the data and then we create aggregate tables that would help us query the data efficiently and lastly we also enrich on chain data and this is what uh us at the attribution team do we come up with wallet labels that give some context to the data they're looking at otherwise an address is just a series of hexadecimal digits right so we try to think of like what are some behavioral

labels could it be um a dex trader if an address has interacted with uh liquidity pool we can say this is a dextrader and that is much better than 0x abc for example so next so with our extensive and rich data sets we've built a playground for our research analysts and our data scientists at nunsen to do what they do best they can perform deep dives and on-chain investigations and they can basically play with the data and that's what we want to encourage at nunsen so now i will actually hand over to daniel cool a research analyst at alpha and he will show an example of what research analysts can do with the data

we have at knutson thanks elizabeth okay so um i'm daniel cool i'm a research analyst with nenson alpha so many of you might be wondering what nansen alpha is so nansen alpha is actually the highest pain tier of nansen subscription so besides the on-chain tool that elizabeth covered so much you also get exposure to a community of crypto mavericks and you also get research analysts who actually work for you write reports come up with basically data driven or tc-driven investment research and lastly you know we also provide you with amas nft white

listing opportunities and possible early investment opportunities for different projects as well and i think many of you might have known about this state if d-pack and what actually happened was actually very different from the narrative pointed out by crypto twitter as well so we see that you know the one-to-one ratio of ethereum to stake if actually fell below is packed and many of uh many of many people think that it's just because you know of um big institutions uh blowing up and stuff like that but actually when we did a further investigation this is you know what actually happened so many of you have might not have known but actually the

state depart actually started because of the contagion effects based on ust and terror ecosystem so during the ust collapse many people actually redrew their bonded eta on anchor back to ethereum on the main net because of all the security risks it poses as well and this actually bonded eve is actually a red version of steak eve and on little and actually many of them brought back the bonded eater unwrapped it to steak eater as well and looking further this is where you can see that you know the steak eater or wonder inter in anchor protocol in may has fell from you know about 650k down all the

way to near zero and this has also affected the price of ethereum as well so you know many people uh have actually uh bridged back their bonded eater and converted it back to state eve during this period of may 7 to may 16 just because you know bonded serve no purpose no purpose on the main net and many of these people have also transferred this stick back to ethereum and to other coins as well because of all the contagion risk and bad market outlook as well so from here we can see the curve uh pool of state eve and ethereum and you see in may that is when the first deepak

sort of happened and that is because of the terra ecosystem blow up so not only did people um unwind their leveraged positions they also you know sold away their ethereum as well and this also caused a fall in the price of ethereum and also caused a fall in the price of stick yet to ethereum and this caused a lot of panic and you see further down the line in june that is when many funds who were over leveraged actually had to sell off their unwind their positions or even sell off the positions in unfavorable market conditions yeah and here are some of these transactions that actually had a strong impact on the liquidity pool of curve

and also had the vulnerability cost availability of the pack of state eve to ethereum and this vulnerability actually uh additional risks for investors especially expecting you know a turmoil of severe cascations market downturns further you know compounding the selling pressure of state if to ethereum and you know the risk to reward ratio of hoving holding this um ethereum derivative for about five to ten percent api might not be worth the risk of the price drawdown based on the d-pack as well and you know as an investor or as a user of nansen what you could do if you're farming in any farms or any pools what you could do is you know firstly identify who are the stakeholders of

these farms and uh pools so for example you know the various entities that are involved you after knowing them you find out how much i know how much of the pool do they control do they control one percent two percent five percent and how much impact they can actually do to you based on your positions as well and the last thing i will do is actually set you know smart alerts on all transactions or any transfers or any news that happens for maybe the curve pool as well as maybe the wormhole bridge if you are actually uh curious about her positions in a bonded eater so anytime any of these institutions make transfers you'll be alerted based on the nansen smart alert and you could be the

first one to you know unwind your positions and also protect yourself in any situations now i'll pass the time back to list to you know continue explaining what nancy is today thank you right so uh we'll talk a bit about nansen uh the dashboards that we have in nansen right now so nonsense today is uh we have you with nansen you can discover new opportunities and also you can perform due diligence and you can defend your positions with the help of smart alerts so nunsen has data that no one else has this is what makes nonsense valuable we

have more than 120 million addresses labeled and we also cover 80 volume coverage across all chains and all the chains that we cover and in fact we also have above 80 transaction coverage as well and this is created by more than 150 contributors the labels so let's talk a bit um about hot contracts so hot contracts is useful because at any point in time let's say maybe for now in the past 15 minutes do you actually know what is happening on ethereum how would you know what is what is the hot activity on ethereum if you're lucky maybe you have a telegram group you have a secret alpha chat and your friends

will tell you ah this is what's going on on ethereum but if you don't then you have nonsense and announcement you can look at hot contracts which will tell you what is the hot activity happening on ethereum or the other networks that we support so typically you'll see things like liquidity pools and also sometimes nft nfd contracts may show up on hot contracts as well so there is one place to look if you want an overview of what is happening on ethereum or any network right now another thing that we have is smart money so you can ask yourself what are smart money wallets trading so smart money is a label that we have at nunsen that sort of

it has multiple segments and it could consist of people who have been profitable trading on decentralized exchanges could be funds institutions and also our private sale investors we have a whole bunch of different types of smart money and we can see what they are doing so here you can see for example the trades that they are making you can also see their transactions and also their token holdings so i believe um before the price increase in ethereum lately actually smart money has already there has been some movement with smart money so one way that you could utilize this is you could either check the dashboards regularly or you could set up

smart alerts even for smart money as well so nfts so we have a very beautiful nft paradise dashboard and in the top of this nft paradise dashboard you'll see nft market overview it gives you sort of like a 24 hour or even more seven day and third day overview of the nfts the activity of nfts in the market right now so you can see uh by volume and also you can see market cap and the average price sale price and also you will get information on the floor price uh within last hour in 24 hours and three days

so basically when nft was at its peak pretty much everything was green here 24 hour was green the floor three day change was also green so it's a very good place to see what the market looks like and also you can see what nfts are hot right now and of course there is much more to nft's dashboards that i won't show but you can see that there are tabs there we have nft smart money for nfts as well and also particularly i would like to talk a bit about mint master which is also very interesting basically it's the hot mints that are happening right now for nfts there's also like a fomo level that will tell you how hot this mint is and also uh

in addition to nfd paradise we also have nft god mode where you can click so from nft paradise you could click through to a specific collection and over here you also get an overview of the nft collection as well you see things like minimum price uh maximum price and the average price in the last 24 hours also floor price volume transactions so it gives you a very good overview of the activity for this particular collection also quite interesting we have a scatter plot that i may be blocking of individual transactions here and so you can see uh for example there's a very high dot here like that's probably a very big sale like maybe something rare was sold we also see smart money uh buying this

collection so the yellow dots indicate that uh yeah that was a smart nft buyer so when you see like lots of yellow dots that's like a good indication i would say nfa though but uh and then there's also a chart for transactions and buyers okay and lastly uh another thing that you can do to defend your positions as well these are smart alerts so smart alerts you can follow specific addresses or you can follow us and labels and also smart money as well and you can set up for discord or telegram and anytime there's any activity you can set filters as well like crosses and thresholds etc

anytime there's any sort of activity you'll get a notification on your phone so particularly if you are in a liquidy pool you have a large position you might want to know who who else is having a large position in this pool and maybe it might make sense to sell smart alerts for these people to see whether when are they doing things that that could affect you so yeah lastly um at nansen we want to surface a signal and also create the winners in the future finance so we believe in enabling the pioneers of crypto like if you are here we want to help you to succeed and that's our mission at nunsen thank you

any question hi thanks for uh thanks for the presentation and one question i have is how real time is nansen and how do you get it from let's say the impractical format into the easy to use format so what's the last part of your question how i guess you mentioned like on-chain data is impractical in one of the beginning slides how do you get it from an impractical mode into an easy-to-use analytics mode we have some ways of doing things um so

we have so how real time is lanza we do have things like streamers that stream that are just reading block by block so it some things are very updated uh like hot contracts means these are important because they need to be as live as possible because if they're happening now you need to know now and some things that are based on like aggregations for example then those might be uh take a bit more time but in general actually i would say our data is actually live we have ways to work around it in our blockchains team that have done excellent work it's actually pretty much um live it might be cash in the front end like maybe for a few minutes but beyond that uh it's pretty much live yeah

i hope that answers your question okay good anybody else okay thank you so i'm a bit interested in how you actually generate all the labels for your like i know like all the addresses and also would you consider to like make it open to the public for people to label if they see like interesting behavior on chain and then we do the label also like would you consider to open up like apis for developers to get all these like data because like i totally see they can be used for let's say the id purpose or let's say d5 diligence so like i think this will be

super interesting yeah yeah thank you very good questions so how do we do the labels um yes so i would say at attribution we have two main components one is the manual component and one is the automatic component so i personally work on the more automatic section of uh attribution manual would be like for example high profile addresses uh high balances these require a bit more finesse more investigation so but manual is always most important because someone has looked at it and the automatic component so we generate behavioral labels if you use nansen you know we have things like elite decks trader this is a behavior we have things like sandwich attack victim or certain other labels so we have nft

collector so that's also that ascendant behavior so these we write it using like heuristics algorithms so it's through code we write these labels and then we propagate them uh throughout the net throughout um yeah the network and also i let me try and recall the question i think you say about an api whether we will do something for so we do have something not really for developers though we have nunsen query which is we aim at more of like uh for businesses institutions but we understand we have a valuable internal data set it is like our aggregate tables they are very like i know that they are very good blockchains team has done fantastic job in with the tables that we have so nuns and query will allow

uh people to directly query our tables so it's not just an api it's beyond an api like you can actually query the tables it's not just putting in some parameters and yeah so we are we have that but for developers that's a good question i don't know but um we'll consider that feedback yeah thank you uh yeah hello hello so obviously you've uh organized the transactions of the blockchain but what about the state do you have like a data set of the state for example if i want to query what the state of the wallet was like two weeks ago at five am how much ethereum was in this wallet i think it is

possible but not optimized like i don't think i think it's theoretically possible given our uh the data that can we i'm not sure like you can calculate it that's what i'm doing now but i would like to have a data set where i could just query it straight off yeah so i think um with nansen query it's definitely possible to get stuff like more historical data and there is something that mainly we don't really have for the retail side yet but it's mostly for institutional customers yeah but yeah i would say uh we don't have a need for it yet yeah so that's why we don't build something like it at the moment we have things

like snapshots but like if you want specifically at 5 a.m for this specific wallet um yeah i don't think we have something the more detailed something is the less optimized it will be because with certain optimization like you take a snapshot of a day one day snapshot that is quicker to query but of course you lose some granularity in the data so yeah i would say there is some give and take we manage the balance between like the precision and also the efficiency of the data so i would say state might be a bit difficult we can construct it we can do something but it would not be efficient yeah any questions all right

okay we're good then thank you so much you